Transforming the adoption of Product-Service Systems through innovations in applied gaming technology

Lead Research Organisation: University of Sheffield
Department Name: Advanced Manufacturing Res Centre Boeing

Abstract

Servitization is the process of transforming manufacturers to compete through Product-Service Systems (PSS) rather than products alone. The commercial and environmental benefits of PSSs are compelling and well documented (Rolls-Royce earning over 50% of their revenue from services is cited to exhaustion). The opportunities are immense (three quarters of wealth world-wide is now created through performing services) and so politically PSSs are seen as key to industrial success in the 21st Century.

Adoption of PSS is frustratingly slow in mainstream manufacturing. Superficially the concepts find appeal but fail to gain traction as the potential implications to a business are complex. In the meantime, China is catching up (Chinese manufacturing companies offering services have grown from 2 - 20% since 2006). In the UK, we need to get better at informing, educating and training, our senior manufacturing managers about PSS and servitization, giving them the means to visualize the potential impact upon their business.

Gamification offers a radical solution. Gamification bridges video-gaming technologies and computer simulations to offer three-dimensional virtual worlds, dynamic and content-rich, which can be used to entertain, educate and inform. This is especially innovative for user engagement, supporting behavior and attitudinal change, and the design of advanced human and computer interfaces for representing and handling complex data systems. This programme will therefore develop applied game technologies, design principles and protocols, to transform the adoption of PSSs within mainstream manufacturing companies and so accelerate the foothold of gamifiaction in strategic business analysis.

Publications

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Baines T (2015) A Delphi study to explore the adoption of servitization in UK companies in Production Planning & Control

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Baines T (2017) Servitization: revisiting the state-of-the-art and research priorities in International Journal of Operations & Production Management

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BAINES, T (2014) Servitization adoption: A Delphi study to gain insights into the transformation of manufacturing in Operations Management in an Innovation Economy

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Baines, T (2014) Servitization transformation: drivers, benefit and barriers in Growth through servitization: drivers, enablers, processes and impact

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Petridis P (2015) State-of-the-art in Business Games in International Journal of Serious Games

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Petridis, P (2014) Gamification: using gaming mechanics to promote a business in Growth through servitization: drivers, enablers, processes and impact

 
Description This ICT cluster grant has enabled discoveries in servitization, gamification, and the development of complementary communities in research and practice.

About Servitization: Analysis of earlier findings indicated a significant opportunity for manufacturers to grow and become financially sustainable through the development and delivery of advanced services. To set the agenda from a more theoretical perspective, we initially developed an extensive research framework based on the analysis of 232 journal publications on servitization (published between 1988 and 2015). This framework demonstrates (i) the developed topics, which identify relatively established knowledge relevant to the topic of servitization, (ii) the developing topics which identify the growing concentrations and opportunities, and (iii) the undeveloped topics which identify significant opportunities for further exploratory studies. Based on this primary research, we identified two key gaps in literature and practice related to the topic: (i) what is the vision for advanced services and how these offerings could be defined? And (ii) what stages of organisational transformation does a manufacturer follow when servitizing to compete through advanced services? To address the first gap, we conducted research that drew evidence from prior literature and industry practices to synthesise a set of foundational propositions that collectively describe how a manufacturing firm can compete through advanced service as a new business model. To address the second gap, we developed a holistic and integrative framework that guides the transformation process that takes place as a product-centric manufacturer servitizes in order to compete through advanced services. This framework shows that the transformation process can be explained as four principal stages of maturity, which the manufacturer proceeds through according to the pressures of five principal forces. These scientific insights into servitization have both contributed to the body of knowledge, have been core to the gamification research, and have been foundational in forming the broader community around this topic.

About Gamification: Our research into games and gamification has been undertaken in parallel to the servitization research to support engagement with advanced services. At the outset of this project we found that the field of gamification research is much more recent and far broader than that of servitization. Our findings from the servitization research, and working alongside both manufacturing and games development organizations, served to demonstrate that previously established theories, methods and models of games and gamification are insufficient for engaging manufacturing organizations with business model transformation. By aligning servitization research with established approaches to simulations, game-based learning and gamification, we were able to thoroughly understand the limitations of existing methods and techniques for applying gamification to business model innovation within manufacturing. We were then able to develop a process which overcomes these limitations by taking into account the requirements and constraints of different participants in gamification projects. This process was refined through the development of games and gamified applications, co-created with manufacturing and/or game development organizations. The process was then evaluated in practice, and this illustrated (i) low tech games and gamified activities can be both captivating while supplying rich sources of qualitative data, and (ii) games and gamified applications that are disseminated digitally are more appropriate for obtaining quantitative data and engaging organizations at scale. Iterations of the gamification process, informed by these findings, can facilitate the development of various activities and applications that serve a range of purposes.

About Communities: In addition to the scientific findings, this ICT cluster grant also set out to form communities of relevant researchers and practitioners. In particular, we have enabled the development of close relationships with both large and small (SMEs) manufacturing firms to understand their organisational change towards servitization and advanced services. To facilitate this, we have formed our Advanced Services Partnership, which enables our researchers to engage in a mutually beneficial partnership allowing manufacturers to better understand the servitization business model. The goal of the partnership is defined as "To accelerate the adoption of advanced services across a range of manufacturing businesses." The partnership consists of members from significant multinational manufacturing, each competing in a different business sector, each on a journey to develop and deploy advanced services, and each engaged at an executive level. Our workshops have covered a range of topics on servitization, for example the first workshop was held in October 2015 at KLM-Air France facilities in Amsterdam to cover the understanding the journey towards the adoption of advanced services, and the second workshop was held in January 2016 a partner manufacturing company in Luxembourg to analyse the business model design and customer value proposition for advanced services. Subsequent round tables have been held in Birmingham, Amsterdam, Atlanta and have engaged a range of companies including GE Power, Rolls Royce, Yanmar, Ishida. These round tables regularly occur every four months and are a strong platform for industrial collaboration.
Exploitation Route Our findings can be taken forwards by both the industrial and academic communities. In the research community our concepts and frameworks have formed cornerstones for researchers seeking to advance servitization. For example, the concept of advanced services, introduced through our work, is now a growing topic in the literature. This is, however, currently focussed on manufacturing, and there are considerable opportunities to expand this into other sectors, such as transport and finance. For industry, our work is enabling manufacturers to frame their service transformation, and there are now over 100 firms collaborating with our group.

To ensure these findings continue to be taken forward, we have established a number of pathways to impact for example, (i) Since 2013, we have organised the annual Spring Servitization Conference to bring a variety of academics in the field and manufacturing businesses with an interest in servitization together. Attendance is generally between 80 and 110 delegates. Conference papers are published in the conference proceedings which are printed and available online; (ii) our spinout company, The Advanced Services Group, was incorporated in October 2015, and focusses on advanced services consultancy. This company is facilitating and enabling practitioners to directly access the practical applications of our research; (iii) gamification workshops and conferences have engaged both enthusiasts and industry practitioners, some of whom have developed their own gamification companies and technological platforms based upon engagement with our research. We anticipate that these individuals and organizations will continue to experience growth following our continued engagement, and (iv) our gamification techniques have informed teaching and learning at our respective institutions, with the development of a centre for games in education being explored at Aston University.
Sectors Aerospace, Defence and Marine,Agriculture, Food and Drink,Chemicals,Communities and Social Services/Policy,Construction,Creative Economy,Digital/Communication/Information Technologies (including Software),Education,Electronics,Energy,Environment,Financial Services, and Management Consultancy,Healthcare,Leisure Activities, including Sports, Recreation and Tourism,Manufacturing, including Industrial Biotechology,Pharmaceuticals and Medical Biotechnology,Retail,Security and Diplomacy,Transport

URL http://www.aston-servitization.com/
 
Description The overall aim of this project was to transform the adoption of Product-Service Systems and servitization within mainstream manufacturing and accelerate the development of gamification (technologies, design principles & protocols) in strategic business decision making. The adoption of Product-Service Systems has been driven by formalising our knowledge of the barriers, risks, paths and contingencies that enable manufacturers to adopt such new concepts. There have been a high number of outputs from the programme, for example: * Developed 5 apps/games to aid engagement with industry: 'Servitization Bingo', 'Unlock your insight', 'Drilling for Success', 'The Boardroom Game' and 'The Servitization Game: Snakes and Ladders to Advanced Services'. These have been used to help engage business leaders in our partnership programme, as well as workshops, conference sessions and executive education. * Published over 45 scholarly journal and conference papers. * Published 7 industry whitepapers on servitization. * Participated in 232 business engagement activities collectively (from Feb 2013 to March 2019), such as keynotes and presentations at industry conferences or workshops. * Produced 'What is Servitization?' animation. * Organised six Spring Servitization Conferences that have resulted in delivery of over 197 academic papers. * Developed advanced services transformation roadmap. * Engaged 3,000 undergraduate students with gamification through long course programmes. * Recruited five PhD/DBA candidates studying servitization. * Hosted "Product-Service Systems and the Servitization of Manufacturing" as part of an ESRC Business Model Seminar Series. * Invited to attend 10 Downing Street to discuss value of servitization to the UK economy. * Produced workbook on gamification systems development. * Facilitated further funding for a partner games company (Eyesparks) for the development of a gamified learning platform. In terms of specific industrial impact, the knowledge created through this EPSRC funding has enabled us to work with 157 SME's which, as a direct result, has delivered £32.85m impact on GVA with a further £10m estimated over the next 12 months. An example of the impact on SMEs at an individual level is MNB Precision Ltd that developed a Servitization strategy from 2014 onwards. As a result, they have now developed an extra £1m of new revenue in 2017 alone; added 37 new staff to payroll in 2017 (circa 76% increase) and invested £500k + in new machines to deal with increased customer demand. Our work with SMEs was commended in the 'Project of the Year' category in the Impact Awards for Knowledge Exchange and Commercialisation (KEC) professionals, organised by Praxis Unico and supported by Research Councils UK. http://www.aston.ac.uk/news/releases/2017/june/aston-praised-for-advanced-services-support-to-smes/. In addition, we have established an exclusive network of likeminded business executives applying leading practices. The partnership is for larger manufacturing organisations traditionally production- focused, and now in the earlier stages of exploring, developing and deploying advanced services. Our work with large businesses, such as Goodyear, has formed the basis of an EPSRC Impact report. https://www.epsrc.ac.uk/files/newsevents/publications/case-studies/2016/key-advantage/.
First Year Of Impact 2013
Sector Aerospace, Defence and Marine,Agriculture, Food and Drink,Chemicals,Communities and Social Services/Policy,Construction,Creative Economy,Digital/Communication/Information Technologies (including Software),Education,Electronics,Energy,Environment,Financial Services, and Management Consultancy,Healthcare,Leisure Activities, including Sports, Recreation and Tourism,Manufacturing, including Industrial Biotechology,Pharmaceuticals and Medical Biotechnology,Transport
Impact Types Cultural,Societal,Economic

 
Description 13th International Conference on Manufacturing Research (ICMR 2015), University of Bath 
Form Of Engagement Activity A talk or presentation
Part Of Official Scheme? No
Geographic Reach National
Primary Audience Professional Practitioners
Results and Impact Over 100 people attended this conference, sparked interesting discussions and interests in using games to overcome servitization barriers.
Year(s) Of Engagement Activity 2015
 
Description 23rd EurOMA conference, At Trondheim 
Form Of Engagement Activity A talk or presentation
Part Of Official Scheme? No
Geographic Reach International
Primary Audience Professional Practitioners
Results and Impact We had a special session related to servitization performance measurement, sparked interesting questions relates to measurement in co-creation of value with customers. A large diverse group of academic audiences discussed their views from applying balanced scorecard approach to enhance servitization performance evaluations.
Year(s) Of Engagement Activity 2016
 
Description Advanced Resource Efficiency Centre (AREC) Workshop 7th Dec, 2017 
Form Of Engagement Activity A talk or presentation
Part Of Official Scheme? No
Geographic Reach Local
Primary Audience Professional Practitioners
Results and Impact This workshop is organized by AREC for understanding latest techniques for resource efficiency and industrial dematerialization. Our discussion on adoption of gamification approach to engage industries to adopt eco-efficient operations has sparked interesting discussion. Further meetings has been arranged to discuss potential gamification opportunities.
Year(s) Of Engagement Activity 2017
 
Description CAPS Research workshop CASS Business School 5th-6th June 
Form Of Engagement Activity A formal working group, expert panel or dialogue
Part Of Official Scheme? No
Geographic Reach International
Primary Audience Industry/Business
Results and Impact This is an round-table discussion organized by CAPS Research for bench-marking supply chain practices with leading industrial leaders. The discussion around uncertainties for the servitization provider and their supply chain skills improvement has sparked questions and discussion afterwards. The outcome also include potential future joint project with Prof Tom Choi from Arizona State University to study the impact of digital technologies on servitization operations.
Year(s) Of Engagement Activity 2017
 
Description EPSRC Future ICT enabled Project Workshop at Manufacturing Futures Conference 
Form Of Engagement Activity Participation in an activity, workshop or similar
Part Of Official Scheme? Yes
Geographic Reach National
Primary Audience Other academic audiences (collaborators, peers etc.)
Results and Impact Presentations sparked discussions about future direction and possible collaboration of projects.

n/a
Year(s) Of Engagement Activity 2013
 
Description ESRC Business Model Seminar Series 
Form Of Engagement Activity A formal working group, expert panel or dialogue
Part Of Official Scheme? No
Geographic Reach International
Primary Audience Professional Practitioners
Results and Impact Increased industrial contacts for possible future collaboration.
Year(s) Of Engagement Activity 2015,2016
 
Description Ellen Macarthur Foundation Disruptive Innovation Festival 
Form Of Engagement Activity A talk or presentation
Part Of Official Scheme? Yes
Geographic Reach International
Primary Audience Professional Practitioners
Results and Impact Stimulate thinking and debate in applying gamification technologies for circular economy.

Talk sparked interest, discussion and questions
Year(s) Of Engagement Activity 2015
URL https://www.thinkdif.co
 
Description EurOMA Conference 
Form Of Engagement Activity A talk or presentation
Part Of Official Scheme? Yes
Geographic Reach International
Primary Audience Other academic audiences (collaborators, peers etc.)
Results and Impact Increased contacts/ understanding of Business Community for Business Club

Plans made for future related activity
Year(s) Of Engagement Activity 2014
 
Description Global Business Conference 
Form Of Engagement Activity A talk or presentation
Part Of Official Scheme? Yes
Geographic Reach International
Primary Audience Other academic audiences (collaborators, peers etc.)
Results and Impact Spark interesting discussions.

Developed relationship
Year(s) Of Engagement Activity 2014
 
Description Hosting group of 16 senior professors from Ministry of Industry and Information Technology, organized by Sino UK Link 4th Sep, 2017 
Form Of Engagement Activity A talk or presentation
Part Of Official Scheme? No
Geographic Reach International
Primary Audience Industry/Business
Results and Impact We have hosted a group made of 16 professors from Ministry of Industry and Information Technology organized by the Sino UK. We have presented our latest research on servitization and application of digital technologies. The industrial leaders from China are very keen to join the discussion relating to potential manufacturing service opportunities in their country.
Year(s) Of Engagement Activity 2017
 
Description Introducng gamification for resource efficiency and outreach for impact 
Form Of Engagement Activity A talk or presentation
Part Of Official Scheme? No
Geographic Reach Local
Primary Audience Professional Practitioners
Results and Impact Gamification development workshop organized by Designing Alloys for Resource Efficiency (DARE) and Advanced Resource Efficiency Centre (AREC), 10 academics within the University of Sheffield has attended the workshop, Victor has introduced the gamification mechanics and its roles in business application. The result of the presentation has sparked questions on gamification development processes, a prototypes of applying gamification to simplify advanced resource efficiency modelling software for school children has been proposed and future grant capture activities organized.
Year(s) Of Engagement Activity 2018
URL http://darealloys.org/about-dare-alloy-design/
 
Description Newton Fund research trip to Brazil 22nd May- 27th May 2017 
Form Of Engagement Activity A talk or presentation
Part Of Official Scheme? No
Geographic Reach International
Primary Audience Industry/Business
Results and Impact This is Newton Fund research visit to discuss sustainability and industrial ecology with colleagues in Brazil. More than 50 scholars from both UK and Brazil have attended the discussion. The intention is to form new collaborations and partnerships with Brazilian colleagues. Our presentation on servitization and industrial sustainability has sparked strong interests from both UK scholars and Brazilian scholars, we have discussed the potential opportunities for joint publications on servitization and circular economy.
Year(s) Of Engagement Activity 2017
URL https://www.britishcouncil.org/education/science/newton
 
Description Spring Servitization Conference 2016, Manchester 
Form Of Engagement Activity A talk or presentation
Part Of Official Scheme? No
Geographic Reach International
Primary Audience Public/other audiences
Results and Impact Great debate about role of game mechanics, sparked interesting questions and increased engagement practitioners to apply game mechanics.
Year(s) Of Engagement Activity 2016
 
Description Spring Servitization Conferences 
Form Of Engagement Activity A talk or presentation
Part Of Official Scheme? Yes
Geographic Reach International
Primary Audience Professional Practitioners
Results and Impact Increased industrial contacts for possible future collaboration

sparked lively workshop sessions
Year(s) Of Engagement Activity 2013,2014
 
Description The International Gamification for Business Conference 2015 
Form Of Engagement Activity A talk or presentation
Part Of Official Scheme? Yes
Geographic Reach International
Primary Audience Professional Practitioners
Results and Impact Sparked interests, questions and discussions.

Interest from a number of delegates following the presentation.
Year(s) Of Engagement Activity 2015
URL http://www.aston.ac.uk/aston-business-school/research/events/the-international-gamification-for-busi...