Title: A competitive product development strategy using modular architecture for product and service systems

Authors: Noriyuki Shikata; Kiminori Gemba; Keisuke Uenishi

Addresses: Department of Management of Industry and Technology Graduate School of Engineering, Osaka University, 2-1, Yamadaoka,Suita-shi, Osaka-fu, 565-0871, Japan ' Graduate School of Technology Management, Ritsumeikan University, 1-1-1, Nojihigashi, Kusatsu-shi, Shiga-ken, 525-8577, Japan ' Department of Management of Industry and Technology Graduate School of Engineering, Osaka University, 2-1, Yamadaoka, Suita-shi, Osaka-fu, 565-0871, Japan

Abstract: Many recent studies have shown that it is difficult for manufacturing companies to succeed by selling only standardised products. The product service system (PSS) concept has been widely discussed as a way of satisfying a range of individual user needs and thus improving profits. However, studies have been focused on PSS as a marketing strategy. This paper explores how to improve PSS performance through an analysis of product architecture. We examine two specific cases that exemplify the PSS characteristics that lead to the generation of competitive advantage. We conclude with the suggestion that companies should improve PSS performance by adopting modular product architecture, a strategy that can extend and diversify services and add value to products.

Keywords: product service systems; PSS; modular product architecture; rental systems; innovation; healthcare products; product development strategy; manufacturing industry; prosthetics; orthotics; Japan.

DOI: 10.1504/IJBSR.2013.056704

International Journal of Business and Systems Research, 2013 Vol.7 No.4, pp.375 - 394

Received: 21 Mar 2012
Accepted: 27 Aug 2012

Published online: 28 Nov 2013 *

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