Currently, manufacturing organisations worldwide are shifting their business models towards Product-Service Systems (PSS), which implies the development of new support agreements such as availability-based contracts. This transition is shifting the responsibilities for managing and resolving obsolescence issues from the customer to the prime contractor and industry work share partners. This new scenario has triggered a new need to estimate the Non-Recurring Engineering (NRE) cost of resolving obsolescence issues at the bidding stage, so it can be included in the support contract. Hence, the aim of this research is to develop an understanding about all types of obsolescence and develop methodologies for the estimation of NRE costs of hardware (electronic, electrical and electromechanical (EEE) components and materials) obsolescence that can be used at the bidding stage for support contracts in the defence and aerospace sectors. For the accomplishment of this aim, an extensive literature review of the related themes to the research area was carried out. It was found that there is a lack of methodologies for the cost estimation of obsolescence, and also a lack of understanding on the different types of obsolescence such as materials and software obsolescence. A systematic industrial investigation corroborated these findings and revealed the current practice in the UK defence sector for cost estimation at the bidding stage, obsolescence management and obsolescence cost estimation. It facilitated the development of an understanding about obsolescence in hardware and software. Further collaboration with experts from more than 14 organisations enabled the iterative development of the EEEFORCE and M-FORCE frameworks, which can be used at the bidding stage of support contracts to estimate the NRE costs incurred during the contracted period in resolving obsolescence issues in EEE components and materials, respectively. These frameworks were implemented within a prototype software platform that was applied to 13 case studies for expert validation.

A Product-Service System (PSS) is an integrated combination of products and services. Industrial systems falling under the Pay-for-Performance (PfP) business model are a type of PSS where an organization sells services to its customers. Offering a PfP system requires analysis of huge amount of data and based on the information gained, an organization can charge its customer on the performance. In this thesis, we identified several services that can be provided to PfP systems and identified several reasons for having a cloud platform together with edge computing for successful deployment of PfP systems. The main contribution of this thesis has been on identifying different architectural solution for PfP systems. We carried out this task by performing a cost analysis of a remote monitoring solution provided by Microsoft Azure for a single Stressometer system. Due to high cost and limited provisioning of Azure services in different Azure regions, we mentioned few alternative ways of designing the solution for PfP system that best suit needs of organizations that have systems distributed globally such that all industrial systems can be provided as PfP systems.

Klädkonsumenter spelar en aktiv roll i konsumtionsutvecklingen och besitter en kraft att förändra klädkonsumtionen. Över tid har olika motreaktioner till dagens klädkonsumtion etablerats och Product-Service Systems (PSS) erbjuder alternativa konsumtionsmöjligheter. Under PSS faller kollaborativ klädkonsumtion och klädbibliotek, som syftar på byte av ägarskap eller delat ägarskap av modeprodukter. I studien presenteras Consumer Culture Theory (CCT) som riktar sig mot dynamiken i kulturella och sociala synpunkter. CCT används som teori för att identifiera kopplingar till PSS-perspektiv och huruvida klädbibliotek kan utvecklas till en bredare konsumtionskultur. Syftet med studien är att undersöka inställningen hos yngre kvinnliga klädkonsumenter till att använda klädbibliotek, genom att titta på kulturella påverkande faktorer. Genom kvalitativa semistrukturerade intervjuer visar resultat på att interna och externa kulturella faktorer bidrar till ökad medvetenhet inom hållbarhet. Allt fler klädkonsumenter förespråkar hållbara konsumtionsalternativ, vilket innebär att klädbibliotek kan få en ökad spridning. / Clothing consumers play an active role in the consumption development and have the power to change clothing consumption. Over time, various counter reactions towards today's clothing consumption have been established and Product Service Systems (PSS) offer alternative consumption opportunities. PSS includes collaborative fashion consumption and clothing libraries, which refer to an exchange of ownership or shared ownership of fashion products. The study presents Consumer Culture Theory (CCT) that aims towards the dynamics of cultura land social perspectives. CCT is used as a theory to identify connections to the PSS perspectiveand whether clothing libraries can evolve into a wider consumer culture. The purpose of this study is to investigate the attitude of younger female clothing consumers to use clothing libraries, by looking at cultural influencing factors. Through qualitative semistructured interviews, the results show that internal and external cultural factors contribute to an increased awareness of sustainability. More and more clothing consumers advocate sustainable consumption options, which means that clothing libraries can increase its spread.

Inledning: Den tillverkande industrin har länge ansetts ha en stor tillväxtpotential i en ökad tjänstefiering och att det finns en stor outnyttjad potential i tjänster för sålda produkter som kan realiseras genom intäkter för tidigare upplevda gratistjänster genom en process som kallas Free-to-Fee. Syfte: Studiens syfte är att undersöka tillverkande företags interna förståelse av de processer som leder till behovet att genomföra en Free-to-Fee-transition, det vill säga hur man idag hanterar tjänster relativt produkter i sina erbjudanden till marknaden och varför man i vissa fall inkluderar tjänster “gratis” i samband med en produktförsäljning.  Metod: Vi har valt att göra en studie med semistrukturerade intervjuer av medarbetare på större tillverkande företag med erfarenhet av att arbeta med tjänsteaffären. Medarbetarna återfinns på stora tillverkande företag inom olika branscher. Slutsats: Vi har funnit att intresset för tjänstefiering och Free-to-Fee övergångar är mycket begränsade, även om det finns en förståelse för värdet av en mer tjänstedominant affärslogik. Industrin är starkt påverkad av traditioner och institutioner där tjänster betraktas som adderat värde i en produktdominant affärslogik. / Introduction: The manufacturing industry has been perceived to have a substantial growth potential in an increased servitization. There is a great untapped potential for service for already sold products that can be realized through a transition from free services to paid service, in a process called Free-to-Fee. Purpose: The purpose with the study is to investigate manufacturing companies internal understanding of the processes that leads to the need to conduct a Free-to-Fee transition, how they today manage service related to products in their offerings to the market and why services are included for free, in some cases with a product sales.  Method: We have chosen to conduct a study of semi structured interviews with professionals working in manufacturing companies, with experience from the service business. The professionals are found at major manufacturing companies representing different branches.  Conclusion: We found that the interest for servitization and Free-to-Fee transitions is very limited, even if there is an understanding of the value of a more Service-Dominant Logic. The industry is strongly affected by traditions and service is perceived as an added value in a Product-Dominant Logic.

This thesis explores effective and contextually appropriate means through which manufacturing SMEs can create competitive advantage through design and sustainable Product Service Systems (PSS). The exploration focuses on how design capabilities can be developed and used in non-design led contexts to drive an effective adoption of sustainable product service systems, creating competitive heterogeneity. A comprehensive review of literature gave understanding of perspectives to competitiveness issues, how organisations have been supported towards PSS, sustainability and design adoption and related challenges. From this review surfaced the need to be cautious of contextual considerations leading to a Delphi study. The purpose of the Delphi study was to identify factors relevant for SMEs in Botswana to embrace sustainable PSS as a competitive business strategy. Priorities from the Delphi study informed a study aimed at exploring competitiveness experiences of SMEs and their perceptions of sustainability and product service systems. Following the position of experts on industries highly prioritised in Botswana s economic diversification agenda, this was done with a specific industry; the leather industry. Possible opportunities of how design can address challenges identified and how PSS and sustainability can open new business opportunities for SMEs were also drawn from the findings. A systems success framework was developed using the main findings. The framework was tested through workshops with 3 SMEs who were also participants in the previous study. Through interactions with designers, the workshops exposed SMEs to design and PSS. Findings from the workshops indicate that through design capabilities SMEs can recognise opportunities and translate them in a service context to differentiated offerings suitable for their various markets. A designerly approach also offered a simplified but holistic process for SMEs to engage in systems thinking.

In today’s fast-paced industry where fight for market share is fierce and reaching the market ahead of competition imperative, product development is a target for lead-time reductions. In this context, in product development in stage-gate processes, decisions need to be made even though knowledge and information are scarce and flawed. The challenge is how to support the decisions that are made in light of uncertainty and ambiguity. The thesis moves from analysing the role of the stage-gate process within the aerospace industry. The stage-gate process was more than a decision making mechanism, and instead a mechanism that facilitated communication, discussion and knowledge sharing between team members, as well as supported knowledge creation and shaping of the boundaries between people’s different perceptions of the knowledge base. However, the communicative and negotiative function of the stage-gate was highly dependent on the ability of the participating individuals to reflect on the status and quality of the available knowledge assets used throughout the process. To make this reflective activity an explicit part of the stage-gate practice, this thesis proposes the application of a knowledge maturity concept at the gates to raise the decision makers’ awareness of the status of the knowledge assets handled at the decision point. The knowledge maturity concept considers three basic dimensions: input, method/tool and experience/expertise in assessing the knowledge base maturity. The scale is intended to act as a boundary object, facilitating the knowledge creation process by highlighting the current status of the knowledge base and making stakeholders aware of the nature of the project’s uncertainties and ambiguities. In the knowledge maturity concept, its purpose is to support design teams at the gates in taking appropriate action, mitigating risk and focusing their efforts on improving the knowledge assets where it is needed most, regarding the situation at hand and, finally, to make more confident decisions.The thesis was developed within the EU FP6 VIVACE (Value Improvement through a Virtual Aeronautical Collaborative Enterprise) and EU FP7 CRESCENDO (Collaborative and Robust Engineering using Simulation Capability Enabling Next Design Optimisation) projects, and within the Faste Laboratory, a VINNOVA Excellence Centre involving partners from the Swedish manufacturing industry.

With the arising digital disruption and global market pressures, several manufacturing companies have recognized the strategic integration of services as a way to competitive advantage and corporate profitability, they therefore have the desire to differentiate themselves by creating new service-oriented strategies, namely Product-Service Systems (PSS). While transforming towards a PSS provider there are a number of barriers that the organization has to overcome. After an extensive literature review the authors identified 34 such barriers. Tukker (2015) argues that the number of successful adoptions of PSS among manufacturing firms is surprisingly low, despite an increased literature awareness and focus on the barriers. The identified barriers are most often seen through the manufacturers’ perspective and little is mentioned about the customers’ perspective on barriers. The gap that was identified in the literature was the lack of customers’ perspective upon these barriers. This thesis aims to investigate the perceived barriers from both the customers’- and the provider’s perspective, and to examine which barriers the provider should emphasize to have the highest potential to successfully transform into a PSS provider. We used Bosch Rexroth as a focal firm and conducted in total 29 interviews with them and their customers and a workshop with 11 participants from the provider. The data from the provider and the customers were separately analysed until the last step, where it generated a barrier spheres. The spheres were used as a foundation for the emerging framework. The framework’s step wise approach is a guideline for manufacturing firms in their efforts to overcome the barriers in order to successfully adopt PSS. This thesis is a first contribution towards shredding light upon the customers’ perspective of barriers towards PSS. Our research shows that one perspective of these barriers is insufficient, since PSS involves both the provider and the customers it should thereby include both perspectives. The managerial implications of this thesis is partly the framework but also the importance for a provider to work closely to their customers and build strong relationships in order to overcome to barriers towards PSS together.

Humanity confronts an existential threat without historic precedent. Environmental pressures have reached such intensity and pace of change that the earth system may be irreversibly tipped into a new and unpredictable state. The emerging global reality is, in turn, redefining overall conditions for business success. Addressing these challenges both demands and brings great opportunities for innovation. An important and sometimes neglected aspect of innovation is the design or redesign of business models, which has been identified as a greater source of lasting competitive advantage than new products and services per se. The business model has also been suggested as a new unit of analysis when discussing sustainability. However, this is still a relatively underexplored area. The aim of this work was therefore to develop an approach to business model design that supports strategic sustainable development, i.e., supports organizations to contribute to society’s transition towards sustainability in a way that strengthens the organization.       To be able to design a business model that supports strategic sustainable development, it is necessary to know what sustainability is and how to develop sustainability-promoting, economically viable strategies. Therefore, the Framework for Strategic Sustainable Development, which includes, e.g., an operational definition of sustainability and strategic guidelines for how to approach it, was used as an overarching framework. Specific research methods and techniques included, e.g., literature reviews, questionnaires, interviews, work with focus groups, participatory action research with partner organizations, creative problem solving techniques, modeling, and simulation.   The literature reviews revealed potential sustainability benefits of developing business models in conjunction with product-service systems (PSS). However, a knowledge gap exists regarding how to effectively connect these fields. Arguably, PSS strategies can best contribute to sustainability when business models support their implementation and when both the business models and the PSS strategies are guided by an understanding of strategic sustainable development. Therefore, an integrated approach to Business Model Design for Strategic Sustainable Development was co-developed and tested in PSS innovation work with partners, e.g., companies within the energy and lighting sectors. The tests indicated that the new approach helped to clarify strengths and weaknesses of current business models from a strategic sustainability perspective; to transform an organization’s vision and strategy into a sustainability-framed vision and a sustainability-promoting strategy; and to communicate the new vision and strategy to the value network as a basis for engaging important stakeholders in the change. For example, the approach supported one of the partner companies in its transformation towards providing sustainable PSS solutions in the form of light as a service. Examples of business benefits of the new approach include improved scalability and risk avoidance, which provide a foundation for better investment strategies. Benefits also include improved differentiability and a broadened view on, and a more solid foundation for, collaboration with stakeholders that are increasingly important to sustainable business success.

The research presented in this thesis demonstrates the qualitative modelling of an advanced service delivered by a Product Service System (PSS) through the use of a socio-technical systems-based approach. The created model represents dependencies between functions and organisations, and can be used as basis for a quantitative cost model. Focus is on how one particular example of advanced services, namely availability is delivered in an industrial context. Following a review of multi-disciplinary literature and the outline of a suitable methodological approach, a detailed case study of the delivery of an exemplar piece of avionics equipment by BAE Systems and GE Aviation to the UK Royal Air Force is described. This research shows that the delivery of avionics availability through a PSS has organisational, contractual and functional facets that overlap and influence each other. Multiple qualitative models represent the investigated setting, from a functional and from an organisational perspective. Top-level functions ‘Analysis & Optimisation’, ‘Administration’ and ‘Delivery’ are identified. The results show distinctive similarities and differences between GE Aviation and BAE Systems including a variety of parallel contracts, organisational segmentation and tensions between relationships and contractual obligations. The findings suggest that understanding a PSS as a socio-technical system is crucial for modelling the PSS and the cost associated with it. This is particularly important when the aim is to continuously control and manage costs rather than the creation of a one-off forecast. The contribution of this work to the existing body of knowledge, primarily within the domain of cost engineering is twofold: First the creation of qualitative models of an existing PSS delivering avionics availability to show “what is a PSS”, and second a methodologically robust approach that takes into account the sociotechnical character of PSS to demonstrate “how to know about PSS”.

The focus of environmental work in manufacturing companies has increasingly shifted from end-of-pipe solutions to the environmental performance of products and services. The product development process is central to creating value for customers. This thesis argues that companies can simultaneously create value for consumers and be profitable while taking environmental considerations into account. Modernising ecodesign means taking advantage of environmental benefits and the innovation potential when developing solutions rather than using ecodesign simply to ensure that legal requirements or customer demands are met. Ecodesign is a strategic issue and should be included in early product development activities, such as for project selection and when setting product targets. There is also need to perform ecodesign according to the characteristics of specific development processes as for radical product development or when developing integrated solutions, using a combination of services and products. This thesis reports on the findings from five different research studies, all of which adopted a qualitative approach in which the emphasis falls on exploring and creating understanding and meaning. The studies focused on three areas of ecodesign: A) rethinking approaches for manufacturing companies, B) setting environmental project targets and project selection and C) redesign of products. Recommendations on how to modernise ecodesign have been developed and can be summarised in six points: • Perform ecodesign both vertically and horizontally in a company. • Increase interaction between organisational units. • Take advantage of innovation potential in products, services, user behaviour and the delivery and take-back systems. • Take environmental considerations into account in the project selection process. • Set environmental targets for ensuring that environmental considerations are taken when developing innovative solutions. • Develop ecodesign procedures that fit the characteristics of the development process