Product-service system innovation capabilities: linkages between the fuzzy front end and subsequent development phases

In an attempt to remain competitive, manufacturers increasingly offer integrated product-service systems (PSSs). This transition from physical products to PSSs calls for new ways of working, for example in the product development process. However, so far only limited attention has been put on capabilities needed to succeed with PSS innovation in the very early development phases – often referred to as the fuzzy front end (FFE). This article, therefore, has a dual aim: first, to further our understanding of capabilities for PSS innovation in the FFE, and second, to determine how these capabilities are linked to PSS innovation capabilities needed in subsequent development phases. Empirical data were collected from an ongoing industrial project developing an innovative PSS offering in a large manufacturing company. Individuals connected to the project reported major challenges, both experienced in the FFE and anticipated in later phases, which provided valuable information regarding capabilities needed to succeed with the endeavour. Findings reveal four links of PSS innovation capabilities: (1) adapting vocabulary and mental models to PSS, (2) handling the ‘intangible aspect’, (3) bridging organisational structures, and (4) managing new business models. PSS innovation capabilities in the FFE are also found to be of higher order (dynamic) compared to capabilities in later development phases.