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Servitization Process Analysis: A Case Study of Automotive Headrest Manufacturing

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  • Junghee Han

    (Software and Communication Department, Honigk University, Seoul 04066, Republic of Korea)

Abstract

Few papers have dealt with the process of servitization at the firm level. There has been a particular lack of research in manufacturing. Business model innovation through convergence between products and services is an indispensable aspect of a firm’s sustainable strategy. The current paper analyzes servitization as a process innovation by performing a single case study of a manufacturing firm. Extending product value, or servitization, is an archetype of business model innovation. To investigate and identify the real problem through so-called service development in a product-service system, we utilized a single case of a headrest in a car seat. Based on study findings, this paper proposes that a product-service system could be classified into three steps: (1) understanding and discovering the service; (2) discovering service conceptualization and developing a scenario phase; and (3) service prototyping and marketization using an infusion of technological utilities. We argue that the process of servitization can be regarded as one of the processes of service design, which is a process of value creation that comes from the synchronization of customer empathy.

Suggested Citation

  • Junghee Han, 2023. "Servitization Process Analysis: A Case Study of Automotive Headrest Manufacturing," Sustainability, MDPI, vol. 15(20), pages 1-17, October.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:20:p:15005-:d:1262112
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    References listed on IDEAS

    as
    1. Junghee Han & Almas Heshmati & Masoomeh Rashidghalam, 2020. "Circular Economy Business Models with a Focus on Servitization," Sustainability, MDPI, vol. 12(21), pages 1-17, October.
    2. Mostaghel, Rana & Oghazi, Pejvak & Parida, Vinit & Sohrabpour, Vahid, 2022. "Digitalization driven retail business model innovation: Evaluation of past and avenues for future research trends," Journal of Business Research, Elsevier, vol. 146(C), pages 134-145.
    3. Wolfgang Ulaga & Werner Reinartz, 2011. "Hybrid Offerings: How Manufacturing Firms Combine Goods and Services Successfully," Post-Print hal-00642039, HAL.
    4. Akbar, Payam & Hoffmann, Stefan, 2020. "Creating value in product service systems through sharing," Journal of Business Research, Elsevier, vol. 121(C), pages 495-505.
    5. Turunen, Taija & Finne, Max, 2014. "The organisational environment’s impact on the servitization of manufacturers," European Management Journal, Elsevier, vol. 32(4), pages 603-615.
    6. Sklyar, Alexey & Kowalkowski, Christian & Tronvoll, Bård & Sörhammar, David, 2019. "Organizing for digital servitization: A service ecosystem perspective," Journal of Business Research, Elsevier, vol. 104(C), pages 450-460.
    7. Grant, Delvin & Yeo, Benjamin, 2018. "A global perspective on tech investment, financing, and ICT on manufacturing and service industry performance," International Journal of Information Management, Elsevier, vol. 43(C), pages 130-145.
    Full references (including those not matched with items on IDEAS)

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