Preparing for Smart Product-Service System (PSS) Implementation: An investigation into the Daimler Group

Abstract

This paper aims at investigating the main factors behind advancing the integration of products and services in the Brazilian subsidiary of Mercedes-Benz (MBB), and how Smart PSS has been perceived by other business units of the Daimler Group. We conducted an in-depth qualitative single-case study research to investigate the critical steps preceding the implementation of a smart PSS. The study was based on the main tactical areas of a PSS business model which was applied to MBB’s possible integration of their equipment (called Fleetboard) in a smart PSS solution. The findings demonstrate that the internal culture of a product-centric automotive manufacturing firm can prohibit the sales of services, even when service technologies are available. On the other hand, financial pressures can create the sense of urgency required for the firm to appreciate the necessity of change. The process of change is too complex, since it requires capabilities in key areas such as the law, marketing, networking/partnerships, design, sustainability, and organization and human resources management. Our study shows how the company considers alternative options in order to reduce organizational barriers, develop partnerships and legal competence to offer PSS contracts, as well as seeking alignment between design, marketing and sustainability requirements.