Tabea Ramirez Hernandez

Tabea Ramirez Hernandez

PhD student

DTU MANAGEMENT
DTU Management

Management Science
MAN-OM

Technical University of Denmark

Akademivej

Building 358, room 100

2800 Kgs. Lyngby

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Keywords Uncertainty Management | Product Development | Product/service-systems (PSS) | Service Development

Emerging concepts like Drive Now car sharing show how companies are changing perspective from a product-oriented to a functional-oriented business. Adopting similar concepts for the manufacturing industry could imply to not sell machines as products and maintenance as their service, but to guarantee a functionality and charge a monthly fee for it. For example “We guarantee you a pleasant climate” instead of selling air conditioners. Another example is the concept of “power by the hour” where Rolls Royce offers their customers the use of their engines instead of their acquisition.

These concepts are known as product-service-systems (PSS). Some manufacturers have tried to offer this new business approach but 79% have failed being unprofitable. We know today that the development of product-service-systems requires a shift in the business model, operations and overall business culture. This shift creates novel and high uncertainties for the companies. Taking the previous example companies have to find answers to: How can we set the price to guarantee a “pleasant climate” while being competitive and operating profitable? Or, how can we manage the large network of service partners which help us to fulfil the task of maintaining the “pleasant climate” at the customer’s site?

In my PhD I want to categorize these uncertainties specific to the PSS-development and derive suitable management practices. This will enable me to create an uncertainty management framework for successful PSS-development. With this I aim to help manufacturing companies in the navigation of a servitised world.