Employing the business model concept to support the adoption of product–service systems (PSS) (original) (raw)
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Business Model Elements for Product-Service System
Functional Thinking for Value Creation, 2011
Companies are seeking for new ways to do business. The Product-Service System concept can be a potential option since it meets requirements regarding sustainability and also introduces a type of business in which the focus is placed on delivering function instead of providing value thought tangible products. However, the deployment of PSS involves a reassessment of companies' business models. Therefore, this paper identifies and classifies the characteristics of the PSS business model that need to be addressed for its implementation, which was carried out using literature review and considering three types of PSS and nine elements of a business model.
Product-Service Systems (PSS) business models and tactics - a systematic literature review
Studies on ProducteService Systems (PSS) are emerging as a growing body of literature driven by the desire to combine economic prosperity and sustainable resource management. However, knowledge about how companies can adopt and implement PSS has remained limited. In this study, a systematic literature review is conducted related to understanding implementation of PSS business models and five sets of tactical practices. Based on an in-depth analysis of 67 articles, it was found that PSS is increasing rapidly as a research field, which is spread across a variety of disciplines and research domains. More specifically, research findings were accumulated from the field to present a framework supporting the implementation of well-established categories of PSS business models, that is, product-oriented, useoriented, and result-oriented business models. Each business model category is linked to five operational-level tactics that ensure the model can be implemented successfully and subsequently generates value. These tactical sets include 1) contracts, 2) marketing, 3) networks, 4) product and service design, and 5) sustainability operational practices. This study concludes by proposing suggestions for future research.
International Journal of Innovation Management, 2013
Firms increasingly rely on business model innovation as a means to face challenges of a world in transition. We identify the conscious integration of products and services, i.e., product service systems, as a valuable strategy to radically innovate product-focused business models. Applying an exploratory multiple case study approach, we uncover five distinct kinds of services that specifically help firms to innovate their business model. These are (1) business consulting, (2) comprehensive services, (3) educational services, (4) financing services, and (5) information management services. The influence of these services on three components of business model innovation (value propositions, value chain architectures, and revenue streams) is discussed. In total, our study emphasizes that integrating specific services with products is an important driver for business model innovations.
Transition to Product-service Systems: Principles and Business Model
Procedia CIRP, 2016
The Product Services Systems philosophy has frequently been put forward as the ultimate form of customer-producer relationship, with mutual benefits in terms of cost, more efficient use of resources, improved performance for the customer, and development of innovative solutions to meeting customer requirements via holistic management of a suite of services for the customer, of which the products form a part. However, it is difficult for enterprises to begin making the shift to PSS without understanding the changes required to their current business models, how these changes may be undertaken in a progressive manner, and the potential benefits that may accrue along the pathway toward PSS. Firstly, this paper establishes a value proposition for PSS, with a set of key principles. These are then examined in terms of the well-established Business Model Canvas. A pathway is then established to assist firms make the shift by taking the necessary steps, and to understand the requirements and potential benefits associated with each step along the way. A case study of an SME is then described to demonstrate these steps in a practical way.
Developing PSS concepts from traditional product sales situation: The use of business model canvas
5th CIRP International Conference on Industrial Product-Service Systems (IPS2)
"In recent years there has been growing interest in utilizing a product-service system (PSS) approach when developing products and services in order to arrive at a business model focused on selling function or availability instead of physical products. However, the complex nature of PSS development has left many manufacturers still struggling to arrive at PSS concepts out of their traditional product sales situation in early design phases. The purpose of this paper is to propose an approach using the Business Model Canvas which could help manufacturers in the transition towards PSS development by articulating key business elements in developing and analyzing PSS concepts evolving from their traditional product sales situation. The paper presents preliminary findings from the aerospace industry and discusses the evolution of key business elements for PSS concepts from traditional product sales situation using the Business Model Canvas. Finally, the potential benefits of using the Business Model Canvas in a PSS context are discussed."
Methods and tools for the development of a Product-Service System: Proposal of a conceptual model
Brazilian Journal of Operations & Production Management, 2022
Goal: Present a holistic perspective of methods and tools for the development of Product Service Systems (PSS). Design/Methodology/Approach: The investigation was conducted in two phases. The first phase presents bibliographic and bibliometric analyses, where 132 papers were read in full. In the second stage, of conceptual development, bibliographic data was grouped and validated by PSS specialists through a questionnaire, whose responses were used to conceptualize a model for PSS development. Results: Elaboration of a concept of a model for the development of Product-Service Systems, capable of providing guidance for all stages of its life cycle. Limitations of the investigation: The proposed model was applied to the bike sharing business model. However, a limitation was the lack of some information regarding this case to apply some methods and tools proposed in the conceptual model. Practical implications: The model developed can be used as a guideline for the elaboration or impro...
AN EMPIRICAL RESEARCH ON PRODUCT SERVICE SYSTEM (PSS) FOR BUSINESS MODEL INNOVATIONS WITH TECHNOLOGY
'Sustainability' is a significant and improving driver of business change. Its results for innovation are clear – living and working in a world of up to 9 billion people with rising expectations, providing energy, food and resource security, operating with climatic change, atmosphere destruction, improving financial dividend and a number of other interdependent problems which require large change in products, service, techniques, enhance marketing and the particular business models for framework. The main focus of this paper is to develop an understanding of emerging patterns and innovation of management which required to taking an account for emerging opportunities in the business 'sustainability'. In particular it draws on case research of a number of business owner/companies to help response the query of what genuine actions might be taken beyond the over mentioned statements of moving towards greater sustainability of business. This paper has identified six emerging approaches (Product service systems (PSS), Open innovation, Peer-to-peer innovation, Closed–loop production, Crowd-funding, and Sharing economy) an empirically tested Product service systems (PSS) with various age groups of respondents, with the objective to understand the developing business models for sustainability of business. For the purpose of analysis chi square test has been used.
Roadmap for business models definition in manufacturing companies
With the globalization and the volatility of the markets there is a huge pressure for manufacturing companies to be more innovative and competitive in delivering value to their customers. The evaluation of overall value chain, designed and implemented to supply a specific product or service, should support changes in the existing business model or in the definition of new business models that ensures higher levels of customer satisfaction. The business model is at the core of the competitive response of any company to the market, defining the value proposition, the required activities, resources and partners, and knowledge of customers, costs or profits related with its overall operation. The relevance that integrated product and services is assuming nowadays, allowing manufacturing companies to achieve a longer and more stable relationship with their customers, determines new approaches to product service development and methodologies or tools to support the review and definition of appropriate business models. In this paper we propose a roadmap to support the development of new business models, their implementation and evaluation. For the roadmap a set of tools are proposed to support each stage from business model design to its evaluation. The roadmap validation is made through a case study.
A Methodology for Product-service Systems Development
Procedia CIRP, 2013
Servitization of manufacturing is getting more importance in our global economy due to the need of manufacturing companies to maintain their sustainability, promoting this way a more long term relation with their customers, and innovating and supplying added value with their products. Therefore, manufacturing companies are challenged to move into a paradigm shift that is to go from considering independently products and services and start to consider them integrated. To integrate services, in their core products, and to support this, process organizational changes are required, and methodologies that integrate the product and services development processes. An effective integration of these processes creates a potential for product-service innovation, that being exploited, contribute to increase competitiveness and to ensure sustainable businesses. In this article, we propose a new methodology for the development of product-service systems (PSS) that promotes the execution of processes for designing products and services, as a parallel sequence of activities, which leads to a consistent product-service development. The proposed methodology contributes for a clear understanding about the processes to be used in product-service design and development, the required organizational changes, and the integration of product-service design with business model definition.
Methods and tools for the development of a Product-Service System: a holistic perspective
Brazilian Journal of Operations & Production Management, 2022
Goal: Present a holistic perspective of methods and tools for the development of Product Service Systems (PSS). Design / Methodology / Approach: The investigation was conducted in two phases. The first phase presents bibliographic and bibliometric analyses, where 132 papers were read in full. In the second stage, of conceptual development, bibliographic data was grouped and validated by PSS specialists through a questionnaire, whose responses were used to conceptualize a model for PSS development. Results: Elaboration of a concept of a model for the development of Product-Service Systems, capable of providing guidance for all stages of its life cycle. Limitations of the investigation: The proposed model was applied to the bike sharing business model. However, a limitation was the lack of some information regarding this case to apply some methods and tools proposed in the conceptual model. Practical implications: The model developed can be used as a guideline for the elaboration or improvement of a PSS proposal, since it provides structure and control to the business models. Originality / Value: The paper demonstrates its originality and relevance by presenting a model centered on a holistic approach, as it provides a perspective of the whole PSS life cycle. Thus, processes are planned and analyzed from the definition of requirements to the destination after use of the PSS.