A framework for differentiation in composed digital-physical products

Baumers, Martin; Ashcroft, Ian; Benford, Steve; Flintham, Martin; Koleva, Boriana; T�th, Zs�fia; Winklhofer, Heidi

Abstract

Product-service systems (PSS) composed of physical products and digital services are emerging as an important new product category. In this paper we suggest that the established metaphor of 'layering' is insufficient to capture the diverse ways in which PSS can be differentiated for, and by, consumers. Responding to this issue, we develop a new framework that centres on the distinction between different modes of horizontal product differentiation, including static, dynamic, compository and user-journey differentiation. Using a design science research (DSR) approach, the framework is applied to two case studies of prototype PSS that use augmented reality to connect physical goods to digital services. Building on this analysis, we argue that the uncovered aspects of differentiation should be further investigated in the management literature and that the existing metaphor of layers should be superseded by a more suitable one.

Citation

Baumers, M., Ashcroft, I., Benford, S., Flintham, M., Koleva, B., Tóth, Z., & Winklhofer, H. (2020). A framework for differentiation in composed digital-physical products. International Journal of Mechatronics and Manufacturing Systems, 13(4), 286-298. https://doi.org/10.1504/IJMMS.2020.112351

• Journal Article Type: Article
• Acceptance Date: Dec 18, 2020
• Online Publication Date: Dec 31, 2020
• Publication Date: Dec 31, 2020
• Deposit Date: Jan 11, 2021
• Publicly Available Date: Jan 1, 2022
• Journal: International Journal of Mechatronics and Manufacturing Systems
• Print ISSN: 1753-1039
• Electronic ISSN: 1753-1047
• Publisher: Inderscience
• Peer Reviewed: Peer Reviewed
• Volume: 13
• Issue: 4
• Pages: 286-298
• DOI: https://doi.org/10.1504/IJMMS.2020.112351
• Keywords: product-service system; horizontal product differentiation; compository differentiation; user-journey differentiation; augmented reality; layers; design science research; CIMO; context-intervention-mechanism-outcome.
• Public URL: https://nottingham-repository.worktribe.com/output/5221785
• Publisher URL: https://www.inderscienceonline.com/doi/abs/10.1504/IJMMS.2020.112351