Increasing Value Capture by Enhancing Manufacturer Commitment - Designing a Value Cocreation System

Abstract

Designing a value cocreation system in the manufacturing industry has seen significant interest in the past two decades. The importance of a value cocreation system has increased along with the social expectations related to increasing resource efficiency and the emergence of enablers such as digitalization. In this article, I take this opportunity to disseminate some findings to industry and managers. Specifically, a review of product/service systems (PSSs) where a manufacturer - taking responsibility for and control of larger ranges in a value network - integrates their products and services to cocreate and capture higher value. PSS design implications and how to implement PSS design are discussed. Insights into designing a PSS in manufacturing practice are highlighted largely based on collaborative experience with large global manufacturers. Strategic management of design activities to avoid design fixation and service design trap is key to the successful design of PSSs.