Ambidextrous approach to energy storage system lifecycle management

Abstract

With growing demand and an increase in product complexity, B2B customers outsource the supporting elements of their business in order to focus more on their core competencies. Therefore, customers usually look for a complete product lifecycle solution, from installation and commissioning to operation and maintenance to modernization or disposal of the product when it reaches the end of its life cycle. However, not every customer is looking for a complete lifecycle solution; some are more than happy to get some basic services from the manufacturer. From the manufacturing perspective, industrial firms must sell products with different service offerings according to customer needs and requirements. In addition, the value proposition for the services offered should be explicitly communicated to the customers. This brings us to utilize the concept of ambidexterity, where the industrial firms focus on exploiting the existing service business, such as basic and support services, and exploring new business opportunities, such as lifecycle services, which helps the manufacturer to have sustainable competitive advantages. The objective of this thesis is to introduce the concept of lifecycle services and study how they can help in lifecycle management through a benefits-sacrifices model following an ambidextrous approach. To achieve the thesis objective, a thorough study of service and customer value literature is performed. The literature review on service refines the concept of lifecycle services and their offerings. The customer value literature review leads to a customer valve assessment based on the benefits-sacrifices model. Furthermore, the theory of ambidexterity is reviewed to define the framework. Finally, a framework that analyzes the benefits-sacrifices of PSS lifecycle offerings is proposed and applied to the case company product. The final outcome of the report shows an ambidextrous approach to managing the service business and developing an understanding of lifecycle services beyond the product lifecycle. In addition, the report provides a framework for lifecycle cost-benefit analysis. Furthermore, lifecycle services are a must-have rather than a nice-to-have for sustainable lifecycle management, supported by empirical findings.