Revolutionizing Customer-Product Dynamics: A New Horizon in Smart Service Systems

Significance 

The customer-product interaction life cycle (CILC) consists of various stages of interaction between a customer and a product, from the initial awareness to the eventual disposal of the product. The concept of CILC is particularly relevant in marketing, product design, and customer service, because it helps businesses understand how customers engage with their products over time. The typical stages of CILC include awareness and attraction and in this stage potential customers first become aware of a product, via advertising, word of mouth, or by encountering it in a store. Secondly, consideration and evaluation where at this point, the customer is actively considering the product and evaluating its features, benefits, and drawbacks against their needs and preferences. Then the purchase, which is the actual transaction stage where the customer decides to buy the product. After purchasing, the customer uses the product and start building an opinion based on their experience. This stage is crucial for forming long-term perceptions of the product and brand. Afterward, the customer’s interaction with the product occurs with maintenance, repairs, and seeking support in case of issues. Then it comes the stage of advocacy or disengagement, depending on their experience, customers may become advocates for the product, recommending it to others, or they may disengage and stop using it. Finally, when the product reaches the end of its life cycle, it is either being disposed of or replaced. Understanding the CILC cycle can help businesses improve their product design, marketing strategies, and customer service approaches to enhance customer satisfaction and loyalty.

On the other hand, smart product service systems (SPSS) an emerging concept which integrates smart products with service systems to enhance customer experiences and create value. This concept is gaining traction in various industries, including manufacturing, healthcare, and retail. It includes smart products embedded with sensors, software, and connectivity that allow them to collect, exchange, and process data. Examples include smart appliances, wearable technology, and connected vehicles. The other component is the service systems which involves services that complement or enhance the value of smart products. This includes maintenance, updates, data analysis, or customer support, often leveraging the data collected by the smart products themselves. SPSS often relies on the analysis of large volumes of data collected by smart products. The data can be used to improve product performance, personalize services, and predict maintenance needs. It is important to mention that SPSS focuses on improving customer engagement and experience. By combining products with services, companies can offer more personalized, convenient, and efficient solutions to customers. It often requires innovative business models. Rather than just selling a product, companies might adopt subscription models, performance-based contracts, or other service-oriented approaches. By enabling better monitoring and control, SPSS can contribute to sustainability goals, like reducing energy consumption or optimizing resource use. Indeed, SPSS represent a holistic approach that combines advanced, connected products with tailored services to create comprehensive, value-added solutions for customers. This approach is reshaping how businesses deliver value and how customers interact with products and services.

In a new study published in the Journal of Cleaner Production by Assistant Professor Xianyu Zhang, senior engineer LuCheng Chen, Mr. GuoJun Sheng, Professor XiaoPing Lu, and Professor Xinguo Ming from the SJTUSME-COSMOPlat Joint Research Center for New Generation Industrial Intelligent Technology- School of Mechanical Engineering at the Shanghai Jiao Tong University, offered a comprehensive look into an innovative service system designed for the CILC in the context of SPSS. This service system is a response to the evolving demands of customers in an era marked by mass personalization, highlighting the shift from traditional functional product demands to a more integrated and interactive approach.

The researchers presented a detailed framework for building a service system that encompasses three critical dimensions: product attributes, customer attributes, and service attributes. This multidimensional approach aimed to cater to diverse customer needs and preferences, ensuring a more personalized and engaging customer experience. The system leverages advanced algorithms for personalized service recommendations, considering factors like enterprise service characteristics, service item weights based on various criteria such as service years, annual service revenue, and product complexity. The authors elaborated on the significance of the system in enhancing customer experience, emphasizing the integration of customer participation in product life cycles and the importance of smart product-service systems in today’s dynamic market. The researchers’ innovation is thought to be a significant shift in how businesses approach customer engagement and service delivery, highlights the need for more customer-centric and adaptive service models in the era of Industry 4.0. In conclusion, the authors contributed significantly to the field of customer service systems, offering a novel framework that aligns with contemporary market trends and customer expectations. The proposed new system highlighted the importance of personalization and customer engagement in the product-service ecosystem, providing valuable insights for businesses aiming to thrive in a rapidly evolving market landscape.

Revolutionizing Customer-Product Dynamics: A New Horizon in Smart Service Systems - Advances in Engineering Revolutionizing Customer-Product Dynamics: A New Horizon in Smart Service Systems - Advances in Engineering

About the author

Dr. Xianyu Zhang, Assistant Professor, Master’s Supervisor, graduated with a Ph.D. from Shanghai Jiao Tong University in 2020 and was awarded the title of Outstanding Graduate (Ph.D.) in Shanghai. He mainly engages in research in the fields of intelligent manufacturing, industrial intelligence (industrial internet, industrial big data, industrial artificial intelligence), mass personalization, and enterprise digital transformation. He has published more than 50 papers in international SCI journals and academic conferences, and has published 6 monographs. He has undertaken or participated in more than 30 national natural science foundation projects, national intelligent manufacturing projects, national green manufacturing projects, Shanghai industrial internet projects, Shanghai industrial big data projects, Shanghai industrial artificial intelligence projects and other industry university research cooperation projects.

Email: [email protected]

About the author

Prof Xinguo Ming, Shanghai Jiao Tong University, has served as Vice Chairman of the Committee of Experts of the China Service-oriented Manufacturing Alliance,  Chairman of the Expert Committee of the China Industrial Services Alliance, Expert of the Working Group on the Revision of the Working Guide of for National Smart Manufacturing Standard Architecture, member of the Expert Group of the China Mass Personalization Alliance, and member of the Expert Group of the China Information Consumption Promotion Alliance, Director of the Innovation Center of the Producer Service Industry at Shanghai Jiao Tong University, member of the Shanghai Information Technology Expert Committee, Director of shanghai Center for Promoting Information Technology and Industrialization Integration. He was a Research Scientist in Singapore Institute of Manufacturing Technology and Visiting Faculty Fellow in MIT. His research interests include Industrial Artificial Intelligence, Industrial Internet, Smart Manufacturing Systems, Smart Product Innovation Ecosystem, Service-oriented Manufacturing (Smart Product Service Ecosystem), Green Design and Supply Chain, Lean Enterprise and Management, etc. Prof. Ming has published over 100 scientific papers and 5 books (in Chinese). He undertakes and participates in a number of Industrial-Academic-Research cooperative projects funded by national and Shanghai government.

Email: [email protected]

About the author

Lucheng Chen, senior engineer, currently serves as the Chairman and General Manager of COSMOPlat IoT Technology Co., Ltd., Director of the State Key Laboratory of Massive Personalized Customization System and Technology, member of the National Intelligent Manufacturing Expert Advisory Committee, member of the National Integration Management System Work Leading Group, Executive Member of the Industrial Internet Expert Advisory Committee, and Vice Chairman of the Industrial Internet Industry Alliance Honorary Executive Director of the Industrial Internet Platform Innovation Cooperation Center, Vice Chairman of the Industry Digitization Special Committee of the National Industrial Information Security Development Research Center, Country Advisor of the Fourth Industrial Revolution Industry Alliance of the United Nations Industrial Development Organization, Member of the 6th Academic Committee of the Tsinghua University Technology Innovation Center, and Executive Chairman of the Shandong Industrial Internet Association.

Email: [email protected]

About the author

GuoJun Sheng, graduated from Zhejiang University majoring in mechanical design and manufacturing. He is current the director&CTO of COSMOPlat IoT Technology Co., Ltd. , and the president of COSMOPlat Industrial Intelligence Research Institute Co., Ltd. He is serving as the technical leader of Haier Industrial Internet, leading the team to explore innovative R&D models, upgrade product technology capabilities, and promote the innovation of COSMOPlat in a wider range, a deeper degree, and a higher level. At the same time, he has constantly broken the boundaries of the industry around the needs of users to build a innovative ecosystem, so that all parties in the system can also participate in the whole process of “value transmission, value creation, value sharing” to achieve symbiosis and prosperity with the whole ecosystem.

Email: [email protected]

About the author

Dr. Xiaoping Lu, a professor and doctoral supervisor, has been engaged in technical research and application in the fields of industrial internet and intelligent manufacturing for a long time. Currently, he serves as the Vice President of COSMOPlat Industrial Intelligence Research Institute and the Deputy Director of the State Key Laboratory of Massive Personalized Customization System and Technology. He also holds social positions such as Vice Chairman of the Overall Group of the China Industrial Internet Industry Alliance and Director of the Shandong Artificial Intelligence Society. Hosted and participated in 33 national scientific research projects, published 51 papers, and applied for 87 patents.

Email: [email protected]

Reference

Xianyu Zhang, LuCheng Chen, GuoJun Sheng, XiaoPing Lu, Xinguo Ming, An innovation service system and personalized recommendation for customer-product interaction life cycle in smart product service system, Journal of Cleaner Production, Volume 398, 2023, 136470.

Go to Journal of Cleaner Production

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