Value Chain Design and Reorganization of Chinese Manufacturers' Product Service Systems: A Case Study of Hangyang

Abstract

Abstract:

Servitization is an important path of the transformation and upgrading of manufacturers. This paper selects Hangzhou Hangyang Co. Ltd. as a paradigmatic case in the context of Chinese manufacturing servitization. The research conforms to case study principles and focuses on value chain activities as the analysis unit. A comparative analysis on Hangyang's value chains within different product service systems is conducted. The paper has some important findings: Manufacturers should form their servitization strategy according to their competitive conditions and select a reasonable and feasible product service system portfolio. Manufacturers should design an appropriate value chain corresponding to its servitization strategy and share some value chain activities among product service systems to improve resource utilization. As to value chain design, manufacturers should pay more attention to value chain activities close to customers since these activities require more customization while activities remote to customers are more convenient to share among product service systems. In the process of servitization, manufacturers should reorganize value chain activities along with the evolution of product service system portfolio so as to realize continuous improvement of product service systems. Based upon Hangyang's case study, this paper concludes some managerial insights on value chain design and reorganization for product service systems, which could benefit the servitization of other Chinese manufacturers.

Key words: servitization, product service system, value chain

Shou Yongyi, Wang Weijiao, Dmitrij Slepniov. Value Chain Design and Reorganization of Chinese Manufacturers' Product Service Systems: A Case Study of Hangyang[J]. , 2016, 28(2): 230-240.

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