From Products to Product-Service Systems: IT-Driven Transformation of a Medical Equipment Manufacturer

Abstract

Meditec is a German manufacturer of instruments for surgeries. The company is quality leader in this sector and supplies many German and international hospitals. However, the opportunities for differentiation against competitors decrease continuously. New competitors from emerging markets are challenging the market position of established companies in this industry. Meditec is therefore forced to change its strategy and business model in order to survive in this novel competitive environment. The management of Meditec has decided to traverse from a pure product manufacturer to a customer-centric solution provider. This transformation requires the development of new processes, competencies and capabilities – especially with respect to IT and IT services. This teaching case helps in understanding the role of IT in product-service systems (PSS) and PSS-based business models. Therefore the case illustrates why IT is necessary to establish a PSS-based business model and why a customer-centric view is important for this kind of business model.

This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

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