Product-Service System Innovation Volvo Construction Equipment Case Study

In recent decades, the business competition in manufacturing industry is becoming more and more intensive. This increased competition has driven manufacturing companies to identify the new way of development strategy which is totally different with their traditional ways of they do business nowadays. Product-Service System (PSS)as a system of products, services, supporting networks and infrastructure that is designed to be:competitive, satisfy customer needs and have a lower environmental impact than traditional business models". The strategy of sterilization of manufacturing is based on customer-oriented service value adding process. This thesis begins from value perspective, introduced, discussed and also concluded the current knowledge and concepts about value proposition and value-oriented PSS development. Meanwhile, according to the manufacturing enterprise value chain distribution and product service system concept, combined with the enterprise value link cluster, this thesis probes the path and model for the transformation of the service industry by PSS. To further demonstrate the implementation of the proposed methodology, a company case study being conducted by author with an M international Construction Equipment Company explored potential of deploying PSS inits Chinese market has been implemented. As a resultthe value for customer and company based on PSS deployment has been discussed.