Strategic Analysis

The Role of the Customer in Product – Service Systems Innovation

GKN HybridGlen Pascoe, a Si2 blog member from GKN Hybrid Power is currently looking for participants in the field research phase of a project aimed at investigating the current industry of product-service systems and understanding the role of customers and end users of product-service offerings.

KN Hybrid Power’s unique flywheel energy storage and kinetic energy recovery system known as Gyrodrive® is currently being used on buses operating in the UK by the Go-Ahead Group.

Market research shows that a retro-fit system option is only viable to new customers if payback is achieved within 3-years. Factors affecting this include; system materials/installation, fuel price, vehicle type, operator’s chosen route, system efficiency and running costs.

It is proposed that the retro-fit Gyrodrive® product is offered as a Product-Service System. Bus operators could pay a fixed rate for the proportion of energy saved using the flywheel technology rather than an up-front price for the system. Selling simply as a product has a negative cash flow impact on the operator of the vehicle and requires relatively short fuel saving payback terms. Pay-as-you-save is considered a more accessible introductory option for new technology, as customer and supplier both share the risk of success.

INTERESTED, please contact Glen at

g.pascoe@cranfield.ac.uk M: 07708 386 291

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