A Framework for Value Co-creation through Customization and Personalization in the Context of Machine Tool PSS

In this paper, a hybrid PSS business model is considered for discussing the framework for value co-creation through customization and personalization. The framework consists of a business model, an engagement model which leads to value creation through customization, and a detailed service execution plan which offers opportunities for value co-creation through co-design, co-production and co-delivery, leading to personalization. The conventional approaches for PSS design do not explicitly address the aspect of customization and personalization through co-creation activities. The expected benefits for the provider and other stakeholders will be in terms of knowledge co-creation and ensuring enhanced customer experience through personalization.