Preparing for smart product-service system (PSS) implementation: an investigation into the Daimler group

Abstract

This paper aims at investigating the main factors behind advancing the integration of products and services in the Brazilian subsidiary of Mercedes-Benz (MBB), and how Smart PSS has been perceived by other business units of the Daimler Group. We conducted an in-depth qualitative single-case study research to investigate the critical steps preceding the implementation of a smart PSS. The study was based on the main tactical areas of a PSS business model which was applied to MBB’s possible integration of their equipment (called Fleetboard) in a smart PSS solution. The findings demonstrate that the internal culture of a product-centric automotive manufacturing firm can prohibit the sales of services, even when service technologies are available. On the other hand, financial pressures can create the sense of urgency required for the firm to appreciate the necessity of change. The process of change is too complex, since it requires capabilities in key areas such as the law, marketing, networking/partnerships, design, sustainability, and organisation and human resources management. Our study shows how the company considers alternative options in order to reduce organisational barriers, develop partnerships and legal competence to offer PSS contracts, as well as seeking alignment between design, marketing and sustainability requirements.

Keywords:

• Smart PSS
• PSS
• servitization
• business model
• operations strategy

Disclosure statement

No potential conflict of interest was reported by the author(s).

Additional information

Notes on contributors

Renato Ferreira Junior

Renato Ferreira Junior holds an MSc degree in Mechanical Engineering by University of FEI (Brazil) and postgraduate degree in Economic Engineering and Industrial Administration with emphasis on Economics. Renato has over 35 years of professional experience in the automotive industry. He has worked in the areas of controllership, pre-planning, production planning, and latest as Senior Purchasing Manager at Mercedes Benz Brazil.

Gabriela Scur

Gabriela Scur is Business Bachelor, Master in Business and PhD in Production Engineering by the Polytechnic School of the University of São Paulo. Professor Gabriela Scur works in the Production Engineering Department at University of FEI, located in São Bernardo do Campo, state of São Paulo, Brazil, since 2006. Dr. Gabriela Scur is currently Adjunct Professor in Operations Strategy and Management. Gabriela has experience in research projects in Operations Strategy, acting mainly on the following themes: sustainability, innovative capabilities, industrial organisation and clusters of companies. The findings of the researches have already been published in peer-reviewed journals such as Journal of Cleaner Production, Competitiveness Review, Review of Business Management and Innovation & Management Review.

Breno Nunes

Dr Breno Nunes is currently Senior Lecturer in Sustainable Operations Management at Aston Business School. Breno belongs to the Operations and Information Management department, where he is Operations Management group leader. Breno is also Vice President of Education, Research, and Publications for The International Association for Management of Technology. Breno has already carried out research in Europe, USA, Thailand, and Brazil. His research has already been published in peer-reviewed journals such as Technological Forecasting & Social Change, Journal of Cleaner Production, Production Planning & Control, Technology Analysis & Strategic Management, Journal of Manufacturing Technology Management, Benchmarking: An International Journal, and Project Management Journal.