Services for Manufacturers: Generating sustainable value through new repair service offerings

University essay from Lunds universitet/Produktionsekonomi

Abstract: Background Introducing services for manufacturing companies can lead to improving customer satisfaction and new revenue streams as well as creating a more sustainable business. However, the current understanding of how this can be done in practice is limited. Purpose This master’s thesis investigates how a manufacturing company can generate sustainable value through the introduction of new repair service offerings. Methodology The research was based on a qualitative single case study with an abductive approach. The data was collected from a manufacturer of electronic products through semi-structured interviews. Conclusion This thesis resulted in multiple repair service offerings for the manufacturers that generated environmental and economic value through a sustainable business model innovation approach. By iterative interviews with stakeholders investigating the value proposition, value creation and delivery as well as value capture mechanisms of a manufacturer, it was possible to minimize the impacts of sustainability trade-offs and develop sustainable repair service offerings. The thesis also suggests a framework for evaluating and prioritizing repair service offerings based on their perceived value for stakeholders, environmental value, and cost. The alignment of a manufacturer’s organization through clear sustainability targets was also found to be important to generate both environmental and economic value.

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