Abstract
Businesses that combine service with products are recognized as a solution for commoditization. In such businesses, products and services should be designed in order to maximize their efficiency. However, many previous studies have shown that business processes maximize the performance by adding complementary services to existing products. This paper analyzed a case study on the rental business of electrically operated, adjustable beds for home use under the public nursing care insurance system in Japan. It was confirmed that the servitized company that both produced and distributed products maximized their performance by innovating and developing new products themselves, although the performance of the products was not always high. It was confirmed that the company determined the needs of the customers through the distribution service, which enabled them to swiftly develop new products by adopting modular architecture.
