Sustainable Business Model in the Product-Service System: Analysis of Global Research and Associated EU Legislation (original) (raw)
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Product Management & Development, 2014
This paper presents the results of a research project which have investigated the effectiveness of the contribution of Product-Service Systems (PSS) towards sustainability from a business perspective in an emerging context. The focus of this study is on the implications on the achievement of a "distributed economy". The authors have investigated the issue in three case studies, each representing one of the main typologies of PSS: result-oriented, product-oriented, and service-oriented. The companies that participated in these case studies were from three different business sectors: a packaging manufacturer for the automotive sector, an office space provider, and a major manufacturer of pipes and fittings. The results reported in this paper focus on the three initial phases of the data collection protocol developed in each case study: strategic analysis, exploration of opportunities, and development of the PSS concept. The data collection techniques included semi-structured interviews, system maps, Sustainability Design-Orienting Toolkit (SDO/MEPSS), direct observation, and photography and document analysis. The intracase study analysis was carried out through workshops with the partner companies, followed by cross-case study analysis, with the aim of identifying common patterns. The case studies show that PSS can contribute to expand the involvement of local stakeholders and to the achievement of a higher level of customization to local requirements. They also showed that it is not possible to state that a PSS can result in small, decentralized, and flexible production units. Also, although they expand the net of stakeholders, none of the case studies present an explicit intent to search for synergy with their counterparts in the same business sector, despite the benefit that such strategy could bring to scaling up the PSS concepts. Therefore, the authors conclude that, within a business perspective in an emerging context, there is no direct connection between PSS and the full extent of the "distributed economy" concept.
Sustainable product-service systems
The concept of sustainable product-service systems has emerged recently, and is distinct from the ideas of cleaner production, eco-design and design for the environment. The concept goes beyond the environmental optimisation of products and processes and requires radical and creative thinking to reduce environmental impacts by a factor of between four and 20 times while maintaining an acceptable quality of service. Sustainable product-services consider alternative socio-technical systems that can provide the essential end-use function, such as warmth or mobility, that an existing product offers. Four types are outlined-result services; shared utilisation services; product-life extension services; and demand side management. Sustainable product-service systems attempt to create designs that are sustainable in terms of environmental burden and resource use, whilst developing product concepts as parts of sustainable whole systems, that provide a service or function to meet essential needs.
Is the Industrial Product-Service System really sustainable?
As the product-service system has shifted from its original concept to the Industrial PSS, its scope has expanded to include industrial products. Furthermore, the overall goal of reducing environmental impacts has been left behind. Despite the PSS's potential as a business model for a more sustainable production and consumption system, the mere addition of services to conventional products does not necessarily lead to a reduction of environmental impacts. This paper aims to discuss the concepts related to PSS, the need for considering environmental impact reduction as a critical issue for sustainability, and the role of ecodesign practices in the development of PSS.
Sustainable Product-Service Systems. Between Strategic Design and Transition Studies
2014
The Product-Service System (PSS) concept represents, theoretically and practically, a promising model to steer our production and consumption systems towards sustainability. PSSs are business models based on selling performance (i.e. results) rather than products. They can provide a range of economic and competitive advantages and, if properly designed, can support the dematerialisation of economy and hence provide environmental benefits. However, it must be stressed that the uptake of this business concept by companies is still very limited. The key problem is that sustainable PSSs can be considered radical innovations. They may require a profound redefinition of the production and consumption modalities and hence their implementation may cope with the current and dominant socio-technical systems. In other words they may challenge existing customer habits, organisational structures and regulative frameworks. For this reason the introduction and scaling-up of such innovations are not completely under the control of a company (or a small network of actors), because changes in the factors that form the boundary conditions (i.e. existing organisations, institutions and networks that share dominant practices, rules and interests), are also required. Although the concept of sustainable PSS has been discussed in the literature for over a decade, not much attention has been devoted to understand how the process of introduction and scaling-up takes place and how it can be managed and oriented. There is therefore a knowledge gap regarding the mechanism and factors driving the implementation and diffusion of this kind of innovations and, consequently, there is a lack of strategies, approaches and tools to enable project managers, management consultants and strategic designers in designing and managing this process. The research presented in this book aims at tackling these issues and in particular at answering the following questions: How sustainable Product-Service System can be introduced and scaled-up? How this transition process can be designed, managed and oriented? The book seeks to answer these challenges by integrating concepts and insights from two research streams: one on Product-Service System (PSS) design and the other on transition studies. In particular the book, through industrial case studies and an action research project, explores and delineates the role of strategic design in supporting the introduction and scaling-up of sustainable PSS innovations. A new strategic design role thus emerges, a role in which the ideation and development of sustainable PSS concepts is coupled with the designing of appropriate transition paths to gradually incubate, introduce and diffuse these innovations. A key role in these transition paths is given to the implementation of socio-technical experiments: protected spaces where radical innovations can be tested, become more mature, and potentially challenge and change dominant socio-technical practices, habits and institutions. The book contributes to clarify how these socio-technical experiments can act as incubators where PSS innovation can start, proliferate and develop. In particular the book focuses on the role of experiments as Labs (to test, learn and improve the PSS innovation on multiple dimensions and involving a multiplicity of actors), Windows (to raise interest on the innovation project and the related actors, disseminate results, build-up synergies with existing similar projects/initiatives, and attract and enrol new actors), and Agents of change (to influence contextual conditions in order to favour and hasten the societal embedding process).
Sustainable Product-Service System (S.PSS)
2018
A key contemporary query is the following: within the current social, environmental and economic crisis, which are the opportunities for innovate towards sustainability? Do we know any offer/business model capable of creating (new) value, decoupling it from material and energy consumption? In other words, is there any alternative to significantly reduce the environmental impact of traditional production/consumption systems?
Journal of Cleaner Production, 2006
The Sustainable Product and/or Service Development (SPSD) approach is a pragmatic industry support encompassing a range of strategies aimed at maximising environmental and social performance in all types of ''offerings'' whether they are ''products'', ''services'' or Product Service Systems (PSS). Implementation of the approach was tested in industry and conclusions reached on the effectiveness of the strategies included in terms of developing an offering with improved sustainability performance as well as practical use as an industry approach. Two strategies incorporated are functional and systems thinking, as these are seen as key for increasing the environmental benefits of offerings. This paper summarises the SPSD approach, general industry testing results, describes how and why functional and systems strategies are incorporated in it and industry testing results relating to their use. This provides valuable information on how functional and systems related considerations can be practically and effectively included in sustainable offering development. Vorst). URL: http://www.sustainableproductsandservices.com, http://www. imperial.ac.uk/env 1 Tel.: þ44 (0)20 7594 9299; fax: þ44 0(20) 7594 9334. 2 TBL provides a translation of Sustainable Development into a business context focusing on environment, social and economic issues as a Triple Bottom Line as distinct from the solely economic bottom line [2]. 0959-6526/$ -see front matter Ó
Journal of Cleaner Production, 2006
In the last decade many researchers, institutes and programs in the EU paid attention to product-service systems (PSS). Given this massive effort, it is time to take stock. Is PSS research a theoretical field in its own right? Is the PSS concept indeed the road to the Factor 10 world? Is it the road to enhanced competitiveness? What is needed to really use the potential of the concept? This paper discusses these questions summarizing the analysis done in the PSS review book 'New Business for Old Europe', various EU sponsored projects and the conceptual approach chosen in a new research network on Sustainable Consumption and Production, called SCORE! Ó
A Framework for Sustainable Product Service Systems: With Particular Reference to Ict Industries
The Sustainable Product Services Systems (S-PSS) philosophy is also known as sustainable servicizing. It focuses on minimizing materials, energy, emissions and the end-of-life waste produced in relation to the use of any manufactured good. The holistic management of a suite of services for the customer, of which the products form a part, differentiates the S-PSS approach from conventional leasing and renting. This paper develops a framework for guidelines that may assist organisations, both clients and service providers, in moving towards implementation of S-PSS in Information and Communication Technology (ICT) industries. The paper discusses the role of products and services in making a switch from buy-own methods of procurement to product service systems for both economic and environmental benefits. It further outlines some changes of management principles that may assist this switch, not only in ICT but also with possible extension to other industries. A number of considerations ...
Eco-efficient Product-Service System (PSS) innovations represent a promising approach to sustainability. However the adoption of such business strategies is still very limited because it often involves significant corporate, cultural and regulatory barriers. An important challenge is not only to conceive eco-efficient PSS concepts, but also to understand the contextual conditions that facilitate their societal embedding, and which strategies and development pathways are the most appropriate. The combination of theoretical insights from innovation studies (in particular Strategic Niche Management and Transition Management) and a case studies research (exploring the innovation journeys made by six companies in introducing their eco-efficient PSS innovations in the market) is used to investigate the factors that influence the implementation and diffusion of this kind of innovations. The article provides a structured overview of these factors, grouping them in four clusters: implementation of socio-technical experiments; establishment of a broad network of actors; building up of a shared project vision; creation of room for broad and reflexive learning processes. Based on these results it is argued that a broader and more strategic system approach should be adopted by companies. Companies should focus not only on the PSS solution and its value chain, but also on the contextual conditions that may favour or hinder the societal embedding of the PSS itself. The article concludes by outlining a key area for future research.
Sustainability, 2018
As the product-service system (PSS) is considered a promising business model that can create more value for customers, PSS research has enjoyed remarkable growth in its volume and coverage over the last decade. This study aims to delineate the thematic landscape of PSS research by identifying latent topics from a large amount of scholarly data. Ten topics of PSS research are identified by applying the Latent Dirichlet Allocation (LDA) model to 1229 PSS publications published between 2000 and 2016. The ten PSS topics are briefly reviewed to provide an overview of what has previously been studied in PSS research. We also investigate which topics rise or fall in popularity by identifying hot and cold topics of PSS research. It is observed that the focus of discussions on the benefits of PSS has shifted from sustainability to value creation. Also, increasing attention has been paid to more practical topics such as PSS implementation. The areas of subspecialty of the top ten PSS journals are also examined to explore the interdisciplinary nature of PSS research and thematic differences across disciplines. The findings of this study can provide rich implications for both academia and practice in the field of PSS.