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Characterizing Product-Service Systems (PSS) in
the Healthcare Industry
Authors: Man Hang Yip, Robert Phaal, David R. Probert
Centre for Technology Management, Department of
Engineering, University of Cambridge, U.K.
Presentation by Man Hang Yip at PICMET14 at Kanazawa, Japan
July 30, 2014
Content
≒ Motivations & objectives
≒ Literature highlights
≒ The PSS Characterization Approach in brief
≒ The implications of this approach
≒ Conclusions
≒ Limitations
2
Yip, M.H. 息 2014
Motivations & objectives
3
$
贈


;)
Hospital
Healthcare service
effectiveness
How and what to innovate?
A new PSS characterization scheme to support the early
stage new PSS development process
Manufacturers
Yip, M.H. 息 2014
Literature highlights  P, S, and PSS
4
A service cannot be stocked without losing its identity and requires both
producer and consumer; hence is constrained by time and location (Hill, 1999).
A product exists independently of its owner and preserves its identity through
time (Hill, 1999, pp. 437), and can be intangible (e.g. a digital sound track).
Product, Service, and PSS
A PSS is a combination of products and services, jointly fulfilling a users needs
(Goedkoop, van Halan, te Riele, & Rommens, 1999)
PSS classification
Frequently used: product-oriented, use-oriented, and result-oriented, which was
extended to include integration-oriented and service-oriented (Neely, 2009)
Issues: built using the traditional reference of product being tangible, and the
classifications are more useful for business modelling than for new PSS
development
Yip, M.H. 息 2014
Literature highlights  contextual influence
5
From business ecosystem literature  companies to look beyond the extended
enterprise boundary to include government, regulatory bodies, competitors, and
other stakeholders interests (Moore, 2006)
Context
From actor-network theory  provides the theoretical
basis to allow connections among actors, that
includes both human and non-human, to be brought
out and examined through flattening levels and
placing actors side-by-side (Latour, 2005; Law, 1992)
From value-in-use literature  Service-Dominant Logic urges
companies to focus on customer value and proposes the concept
that the context of value creation is network of networks (Vargo &
Lusch, 2004; 2008)
Yip, M.H. 息 2014
The PSS Characterization Approach (in brief)
6
Step 4: PSS
Representation
Step 1: PSS
Depiction
Step 5: PSS
Characterisation
Step 3: PSS
Decomposition
Step 2: PSS
Abstract
Representation
Companys strategy on new
product and service
Step 0:
Stakeholder
identification
Yip, M.H. 息 2014
The Four PSS Characteristics:
- potential customer perceived value level
- type and degree of connectivity
- connectivity number
- PSS configuration type
7
Yip, M.H. 息 2014
Step 1
Step 2
Step 3
Step 3
Step 4
Step 5
The implications of this approach
8
PSS Definition
Customer value
Environmental impact
Product & service content
Strategy for NPSSD
Process for NPSSD
Yip, M.H. 息 2014
The applicability of this approach to support
the early stage of NPSSD
9
Applicability Findings
Feasibility Stakeholder identification & PSS abstraction steps could possibly be
completed without a trained facilitator
Usability Needs refinement, but the approach is robust enough to be applied in
different scenarios
Utility ≒ Useful for identifying stakeholders, relevant existing and new product
and service elements for the new PSS
≒ Encouraged participants to think about which element within the PSS
potentially more valued by the customers
≒ Meaningfully showed how the product and service elements interact
within the PSS, and how they are to connect with the operating
environment
Yip, M.H. 息 2014
Conclusions
10
Is an applicable
approach to
support the early
stage of NPSSD.
Allows the four PSS
characteristics to be
obtained in a systematic and
repeatable manner.
Clarifies the PSS definition:
1) What do the customer
value?
2) How does it impact the
environment? Who are
the key stakeholders?
3) What are the more
important elements,
how do they interact?
Informs the NPSSD strategy
and process:
4) Where does the complexity
of the development come from?
5) What is the main focus, what
is supplementary?
Yip, M.H. 息 2014
Limitations
11
After this paper was written 
7 more workshops targeting
new PSS ideas in both
healthcare and non-healthcare
were completed.
An independent observer was
used in three workshops to
enrich the assessment of the
approach.
The PSS characteristics proposed are
generated from healthcare cases, and may
be limited to NPSSD in the healthcare
industry only.
Only three workshop results are included in
this paper for producing the assessment of
the applicability of the PSS characterization
approach and its implications to the PSS
definition.
As action research is used as the
methodology, the feasibility of the approach
is influenced by the facilitation skills of the
researcher.
The interpretation of the workshop findings
is biased by the researchers culture,
background, and knowledge of the PSS in
discussion.
Yip, M.H. 息 2014
Yip, M.H. 息 2014
12
If you are interested in this paper, it is in the PICMET2014 conference proceeding.
The title of the paper is: Characterizing Product-Service Systems in the Healthcare Industry
Suggested reference to this presentation:
Yip, M. H. (2014). Characterizing Product-Service Systems (PSS) in the Healthcare
Industry [PowerPoint slides]. Retrieved from http://www.shlideshare.net/pss-
characterisation-presentation-post-presentation

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Characterizing product-service systems in the healthcare industry (PICMET 2014)

  • 1. Characterizing Product-Service Systems (PSS) in the Healthcare Industry Authors: Man Hang Yip, Robert Phaal, David R. Probert Centre for Technology Management, Department of Engineering, University of Cambridge, U.K. Presentation by Man Hang Yip at PICMET14 at Kanazawa, Japan July 30, 2014
  • 2. Content ≒ Motivations & objectives ≒ Literature highlights ≒ The PSS Characterization Approach in brief ≒ The implications of this approach ≒ Conclusions ≒ Limitations 2 Yip, M.H. 息 2014
  • 3. Motivations & objectives 3 $ 贈 ;) Hospital Healthcare service effectiveness How and what to innovate? A new PSS characterization scheme to support the early stage new PSS development process Manufacturers Yip, M.H. 息 2014
  • 4. Literature highlights P, S, and PSS 4 A service cannot be stocked without losing its identity and requires both producer and consumer; hence is constrained by time and location (Hill, 1999). A product exists independently of its owner and preserves its identity through time (Hill, 1999, pp. 437), and can be intangible (e.g. a digital sound track). Product, Service, and PSS A PSS is a combination of products and services, jointly fulfilling a users needs (Goedkoop, van Halan, te Riele, & Rommens, 1999) PSS classification Frequently used: product-oriented, use-oriented, and result-oriented, which was extended to include integration-oriented and service-oriented (Neely, 2009) Issues: built using the traditional reference of product being tangible, and the classifications are more useful for business modelling than for new PSS development Yip, M.H. 息 2014
  • 5. Literature highlights contextual influence 5 From business ecosystem literature companies to look beyond the extended enterprise boundary to include government, regulatory bodies, competitors, and other stakeholders interests (Moore, 2006) Context From actor-network theory provides the theoretical basis to allow connections among actors, that includes both human and non-human, to be brought out and examined through flattening levels and placing actors side-by-side (Latour, 2005; Law, 1992) From value-in-use literature Service-Dominant Logic urges companies to focus on customer value and proposes the concept that the context of value creation is network of networks (Vargo & Lusch, 2004; 2008) Yip, M.H. 息 2014
  • 6. The PSS Characterization Approach (in brief) 6 Step 4: PSS Representation Step 1: PSS Depiction Step 5: PSS Characterisation Step 3: PSS Decomposition Step 2: PSS Abstract Representation Companys strategy on new product and service Step 0: Stakeholder identification Yip, M.H. 息 2014 The Four PSS Characteristics: - potential customer perceived value level - type and degree of connectivity - connectivity number - PSS configuration type
  • 7. 7 Yip, M.H. 息 2014 Step 1 Step 2 Step 3 Step 3 Step 4 Step 5
  • 8. The implications of this approach 8 PSS Definition Customer value Environmental impact Product & service content Strategy for NPSSD Process for NPSSD Yip, M.H. 息 2014
  • 9. The applicability of this approach to support the early stage of NPSSD 9 Applicability Findings Feasibility Stakeholder identification & PSS abstraction steps could possibly be completed without a trained facilitator Usability Needs refinement, but the approach is robust enough to be applied in different scenarios Utility ≒ Useful for identifying stakeholders, relevant existing and new product and service elements for the new PSS ≒ Encouraged participants to think about which element within the PSS potentially more valued by the customers ≒ Meaningfully showed how the product and service elements interact within the PSS, and how they are to connect with the operating environment Yip, M.H. 息 2014
  • 10. Conclusions 10 Is an applicable approach to support the early stage of NPSSD. Allows the four PSS characteristics to be obtained in a systematic and repeatable manner. Clarifies the PSS definition: 1) What do the customer value? 2) How does it impact the environment? Who are the key stakeholders? 3) What are the more important elements, how do they interact? Informs the NPSSD strategy and process: 4) Where does the complexity of the development come from? 5) What is the main focus, what is supplementary? Yip, M.H. 息 2014
  • 11. Limitations 11 After this paper was written 7 more workshops targeting new PSS ideas in both healthcare and non-healthcare were completed. An independent observer was used in three workshops to enrich the assessment of the approach. The PSS characteristics proposed are generated from healthcare cases, and may be limited to NPSSD in the healthcare industry only. Only three workshop results are included in this paper for producing the assessment of the applicability of the PSS characterization approach and its implications to the PSS definition. As action research is used as the methodology, the feasibility of the approach is influenced by the facilitation skills of the researcher. The interpretation of the workshop findings is biased by the researchers culture, background, and knowledge of the PSS in discussion. Yip, M.H. 息 2014
  • 12. Yip, M.H. 息 2014 12 If you are interested in this paper, it is in the PICMET2014 conference proceeding. The title of the paper is: Characterizing Product-Service Systems in the Healthcare Industry Suggested reference to this presentation: Yip, M. H. (2014). Characterizing Product-Service Systems (PSS) in the Healthcare Industry [PowerPoint slides]. Retrieved from http://www.shlideshare.net/pss- characterisation-presentation-post-presentation