hybrid products

Product attractiveness can be substantially increased when offering service extensions alongside. These services may create additional demand for the product by addressing new customer groups. The main challenge however is the development of services which increase customer value of the product to such an extent that leads to a purchase decision. The paper presents a method of idea generation for new product-service combinations following a systematic search approach for possible options. The basic concept of the suggested method as well as its search methodology for identification of promising services will be discussed using the example of the electric car, which so far lacks mass market success due to inadequate business models.

Today, many companies from different industry sectors view hybrid products as a chance to achieve sustainable competitive advantages. But in practice many companies see little gain in the supply of hybrid products. This article shows that in order to build a competitive advantage companies have to make sure that their hybrid products provide high value for the customer, which in return requires a process of co-creation with the customer. Additionally, we will describe that and how a dialogue-oriented marketing communication can affect a customer’s perception of value.

The development of value propositions is key for leverage technological intelligence. Meaningful and sustaining attributes for differentiation are able to contribute significantly to long term growth if they are based on a value oriented business model. Well known from Service Industries, customer integration could be applied to other industries for product development, too. Associated risks can be detected and subsequently managed.

Today, mechanical and plant engineering companies are already providing service bundles in the form of product-service combinations. These consist of common ranges of services, e.g. for development, customisation, operator, financing or maintenance. As a rule however, the elements of service bundles are developed separately. Moreover, the services offered are often viewed as a necessity demanded by the market. A strategy appearing to promise long-term success is pursued by offering solutions in the form of hybrid products in which service and material good form a symbiotic relationship. Rigorously pursuing this strategy entails sustainably implementing a business process to develop hybrid products in a company. This paper discusses requirements of organizing this business process. Attention is focused on a networked approach to developing material goods and services as well as the incorporation of a mechanical and plant engineering company’s network of relationships.