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Workbook 3: PSS Readiness Manual
BY : Juliana Hsuan
Professor
jh.om@cbs.dk
Gauging your
Readiness for PSS

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Presentation titleWorld-Class Servitization, methods, cases and partnerships
• How do you know whether you are ready
or not?
• Do you have a strategy?
• Which competitive factors do you
consider critical in the strategy? Why?
• Which criteria do you prepare yourself
against?
Are you ready for
PSS?

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Presentation titleWorld-Class Servitization, methods, cases and partnerships
• Market Dynamics
• Business Models
• Partnerships
• Organisational Dynamics
• Value Propositions
Critical Themes

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Market
Dynamics
• What are the competitive factors in our market?
• What are the offerings available in the market?
• What is the competitive environment?
• How do we create our market-based capabilities?
• Can we create new markets?

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• What are the competitive factors in our market?
• What are the offerings available in the market? What is the competitive
environment?
• How do we create our market-based capabilities? Can we create new
markets?
• Can we determine potential profits, risks and
costs involved in providing integrated PSS
offerings to our customers?
• Can we evaluate the life cycle costs incurred by
our customers?
• What kinds of contractual obligations do we have
towards our partners?
Market
Dynamics
Business
Models

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• Can we determine potential profits, risks and costs involved in
providing integrated PSS offerings to our customers?
• Can we evaluate the life cycle costs incurred by our customers?
• What kinds of contractual obligations do we have towards our
partners?
• What kinds of network constellation can be
beneficial when operating in an integrated PSS
oriented business?
• What are the mutual dependencies shared
between the customers, the provider and
suppliers?
• Can we build strong relationships and inspire
trust with our customers and suppliers?
Business
Models
Partnerships
• What are the competitive factors in our market?
• What are the offerings available in the market? What is the competitive
environment?
• How do we create our market-based capabilities? Can we create new
markets?
Market
Dynamics

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• Can we determine potential profits, risks and costs involved in
providing integrated PSS offerings to our customers?
• Can we evaluate the life cycle costs incurred by our customers?
• What kinds of contractual obligations do we have towards our
partners?
Business
Models
Partnerships
• What are the competitive factors in our market?
• What are the offerings available in the market? What is the competitive
environment?
• How do we create our market-based capabilities? Can we create new
markets?
• What kinds of network constellation can be beneficial when operating
in an integrated PSS oriented business?
• What are the mutual dependencies shared between the customers, the
provider and suppliers?
• Can we build strong relationships and inspire trust with our customers
and suppliers?
Market
Dynamics
Organisational
Dynamics
• Do product managers interact with service
managers regularly?
• Do we have the competences needed to provide
service offerings?
• Is there top management support to embark on
the PSS transition?
• Do we have the IT system required to support
digital service activities?
• Do we have a structured development process
with integrated PSS thinking?

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Market
Dynamics
Business
Models
Organisational
Dynamics
Partnerships
• What are the competitive factors in our market?
• What are the offerings available in the market? What is the competitive
environment?
• How do we create our market-based capabilities? Can we create new
markets?
• Can we determine potential profits, risks and costs involved in
providing integrated PSS offerings to our customers?
• Can we evaluate the life cycle costs incurred by our customers?
• What kinds of contractual obligations do we have towards our
partners?
• What kinds of network constellation can be beneficial when operating
in an integrated PSS oriented business?
• What are the mutual dependencies shared between the customers, the
provider and suppliers?
• Can we build strong relationships and inspire trust with our customers
and suppliers?
• Do product managers interact with service managers regularly?
• Do we have the competences needed to provide service offerings?
• Is there top management support to embark on the PSS transition?
• Do we have the IT system required to support digital service activities?
• Do we have a structured development process with integrated PSS
thinking?
• Is our value proposition dependent on
and/or co-produced along with other
suppliers?
• Are our current offerings oriented toward
short-term transaction or a long-term
relationship?
• To what extent does the customer’s own
knowledge and skills affect the
performance of our offerings?
Asset-Centric
 Product quality
Recovery Provision
 Minimum
downtime
Availability
Maximisation
 customer usage
Outcome-Based
 Configuration of
resources
Value
Propositions

9. 07-05-2014 907-05-2014 9
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Presentation titleWorld-Class Servitization, methods, cases and partnerships
So… are you ready?
Let’s see how Danelec Marine A/S prepares
itself for readiness.