Design for Emerging Bottom of the Pyramid Markets: A Product Service System (PSS) Based Approach

2011 ◽  
Author(s):  
Carson Schafer ◽  
Richard Parks ◽  
Rahul Rai
Keyword(s):  
Emerging Markets ◽  
Ad Hoc ◽  
Bottom Of The Pyramid ◽  
Product Service System ◽  
Product Service ◽  
Unique Framework ◽  
Bop Markets ◽  
High Level ◽  
Product Service Systems ◽  
Profit Potential

Multi billion people exist at the bottom of the global economic pyramid (BOP). Increased consumer demand and enormous volume has helped turn these BOP into emerging markets with substantial profit potential. Current approaches for designing product and service solutions for BOP markets are ad-hoc in nature. Product Service Systems (PSS), products intertwined with services, can be highly adaptable to these emerging markets and provide an unique framework for designing solutions in the emerging BOP markets. This paper systematically approaches the problem of designing customized PSSs for emerging markets. The approach is based on results of an empirical study of multiple cases of existing successful products and services designed for BOP markets. As part of the study various cases are analyzed and high level principles for designing PSSs are derived from the empirical data. The utility of the approach is demonstrated through the conceptual design of a healthcare PSS for emerging markets.

Cultural Barriers to the Transition from Product to Product Service in the Medical Device Industry

2014 ◽  
Vol 5 (2) ◽  
pp. 36-50 ◽  
Author(s):  
Linda Ryan ◽  
David Tormey ◽  
Perry Share
Keyword(s):  
Medical Device ◽  
Value Chain ◽  
Service Provision ◽  
Cultural Barriers ◽  
Manufacturing Companies ◽  
Regulatory Requirements ◽  
Product Service ◽  
High Level ◽  
Product Service Systems ◽  
Service Transition

Manufacturing companies are increasingly moving up the value chain by expanding their value offering to include service components, namely Product Service Systems (PSS). Due to the fundamental differences between the provision of products and services, many struggle to effectively integrate the two into a single cohesive offering. This is particularly true of companies operating in the medical device field as, due to the high level of regulatory requirements and controls, implementation of the ‘soft' components of service provision is difficult. The aim of the research is to facilitate companies to move up the value chain from product to product-service provision. Once identified, barriers can then be directly addressed and overcome, thereby allowing the development of a cohesive PSS offering. This will be achieved by identifying existing cultural barriers in relation to the application of PSS strategy within a product-orientated business. This information can be used to facilitate the application of PSS models with produc-orientated companies. This paper details qualitative research, undertaken with eight product-orientated medical device companies and two service practitioners, which establishes, details and analyses the primary cultural barriers in relation to product to product-service transition. These cultural barriers are further extrapolated through a supporting literature research.

Sticking to the social mission: Microinsurance in bottom of the pyramid markets

2019 ◽  
Vol 44 (4) ◽  
pp. 209-219
Author(s):  
B Elango ◽  
Stephen Chen ◽  
Jim Jones
Keyword(s):  
Emerging Markets ◽  
Social Services ◽  
Social Enterprise ◽  
Social Enterprises ◽  
Bottom Of The Pyramid ◽  
Social Mission ◽  
The Social ◽  
Bop Markets

The purpose of this article is to understand what drives social enterprises in bottom of the pyramid (BOP) markets to stick to or drift away from their social mission. Based on an analysis of 192 microinsurance operators in 26 emerging markets, we find that (1) when donors are involved in the operations of the social enterprise, this leads to a greater commitment to the social mission and (2) social enterprises located in countries with poorly performing governments tend to have a lower commitment to their social mission. Given the need for social services in such countries, we offer some suggestions to increase the chances of social enterprises staying committed to their social mission.

scholarly journals Circular Innovation Framework: Verifying Conceptual to Practical Decisions in Sustainability-Oriented Product-Service System Cases

2019 ◽  
Vol 11 (12) ◽  
pp. 3248 ◽  
Author(s):  
Daniel Guzzo ◽  
Adriana Hofmann Trevisan ◽  
Marcia Echeveste ◽  
Janaina Mascarenhas Hornos Costa
Keyword(s):  
Decision Making ◽  
Content Analysis ◽  
Service System ◽  
Service Systems ◽  
Research Approach ◽  
Coding System ◽  
Product Service System ◽  
Product Service ◽  
Tactical Decisions ◽  
Product Service Systems

Product–service systems (PSSs) have significant sustainability potential. However, limited knowledge is available on the choices to develop circular PSS solutions. The goal of this paper is to provide a circular innovation framework containing circular strategies to facilitate the decision-making in PSS circular innovation. A systematic literature review in combination with content analysis underpinned this research. The strategies were investigated in 45 PSS cases from the literature. A coding system was designed and employed to identify and organize the circular strategies and practices. The statistics techniques employed were frequency and co-occurrence analysis, which aimed to describe the synergies among strategies. The framework proposed contains twenty-one circular strategies. The practical perspective comprises the seventy-seven practices used for the operationalization of strategies. The framework can assist organizations in making strategic to tactical decisions when developing circular PSS solutions. The paper provides a panorama of the strategy applications among the PSS types. Finally, the research approach can be employed to continuously develop an understanding of the application of circular strategies in PSS and other fields.

scholarly journals Configuring New Business Models for Circular Economy through Product–Service Systems

2019 ◽  
Vol 11 (13) ◽  
pp. 3727 ◽  
Author(s):  
Marina P. P. Pieroni ◽  
Tim C. McAloone ◽  
Daniela C. A. Pigosso
Keyword(s):  
Circular Economy ◽  
Customer Value ◽  
Business Models ◽  
Service System ◽  
Service Systems ◽  
Product Service System ◽  
Product Service ◽  
New Business ◽  
Product Service Systems ◽  
New Business Models

Product—service systems (PSSs) are often outlined as potential enablers of new business models for circular economy. However, not all business models based on product-service systems have superior circularity potential. This research demonstrates how the application of a previously developed business model configurator for circular economy can support the design and assessment of customer value, economic and resource decoupling potential for product-service system business models in practice. By applying action research in two Nordic manufacturing companies from the furniture sector, different business model concepts based on product-service systems were proposed and assessed. Results indicate positive uptake by companies regarding the usefulness of the obtained outcomes. This research identified two key findings about ‘product-service system business models for circular economy’: (i) their configuration should fulfil certain simultaneous conditions—i.e. superior customer value, economic growth, and resource decoupling potential—to contribute to circular economy; and (ii) they are often ‘niche solutions’, fulfilling specific needs and customer segments, and more likely to flourish with certain types/characteristic of products, segments or geographical locations. Lastly, a framework outlining the conditions and trade-offs for assessing the circularity potential of business models based on product-service systems is introduced as one of the key contributions.

scholarly journals Product Service Systems in Construction Supply Chains

2019 ◽  
Vol 50 (2) ◽  
pp. 132-138 ◽  
Author(s):  
Niclas Andersson ◽  
Jerker Lessing
Keyword(s):  
Supply Chains ◽  
Case Studies ◽  
Service Systems ◽  
Business Systems ◽  
Product Service System ◽  
Strong Focus ◽  
Product Service ◽  
Market Relations ◽  
Product Service Systems

The shipbuilding, automotive and aerospace industries are examples of industries offering product service systems (PSS) to their customers, i.e. they combine physical products with services to add increased value. While product service systems are well established in many manufacturing industries, it has barely emerged in the fragmented and project-based organisation of construction. The objective of this study is to identify and critically review examples of product service systems in construction supply chains, with the purpose of describing how it challenges prevailing business systems and organisation of construction work. The study rests upon two case studies carried out at Gyproc Saint-Gobain in Denmark and Celsa Steel Service in Sweden. The findings reveal significant challenges related to the implementation and marketing of the product service systems provided. Companies that develop and expand their business offers by providing new product service systems tend to find themselves operating in two parallel market segments, i.e. the traditional market of construction components and the new market of product service systems. The PSS-offers reviewed in the case studies show a strong focus and emphasis on the development of the offer and the operational platform, while the companies’ market positions remain unchanged. Thus, the case study companies organise and operate their businesses and market relations as before the implementation of the product service system. The conclusion is that development and implementation of product service systems in construction supply chains requires awareness in the companies’ offer of products and services, well-established operational platforms, and particularly, a renewed market position.

scholarly journals Analyzing cognitive processes of a product/service-system design session using protocol analysis

2020 ◽  
Vol 34 (4) ◽  
pp. 515-530
Author(s):  
Tomohiko Sakao ◽  
John Gero ◽  
Hajime Mizuyama
Keyword(s):  
Product Design ◽  
Cognitive Processes ◽  
Protocol Analysis ◽  
Cognitive Activity ◽  
Product Service System ◽  
Coding Scheme ◽  
Product Service ◽  
Cognitive Study ◽  
Product Service Systems ◽  
Design Experiments

AbstractProduct/service systems (PSSs) are increasingly found in markets, and more resources are being invested in PSS design. Despite the substantial research into PSS design, the current literature exhibits an incomplete understanding of it as a cognitive activity. This article demonstrates that the methods used to analyze product designers’ cognitive behavior can be used to produce comparable and commensurable results when analyzing PSS designers. It also generates empirical grounding for the development of hypotheses based on a cognitive study of a PSS design session in a laboratory environment using protocol analysis. This study is a part of a larger project comparing PSS design with product design. The results, which are based on the function–behavior–structure coding scheme, show that PSS design, when coded using this scheme, can be quantitatively compared with product design. Five hypotheses were developed based on the results of the study of this design session concerning where and how designers expend their cognitive design effort. These hypotheses can be used to design experiments that test them and provide the grounding for a fuller understanding of PSS design.

Engineering Value Co-Creation in Product-Service Systems

2017 ◽  
pp. 22-36 ◽  
Author(s):  
Giuditta Pezzotta ◽  
Sergio Cavalieri ◽  
David Romero
Keyword(s):  
Service System ◽  
Service Systems ◽  
Competitive Market ◽  
Engineering Process ◽  
Integration Process ◽  
Research Groups ◽  
Product Service System ◽  
Active Involvement ◽  
Product Service ◽  
Product Service Systems

The integration process of products and services is still a growing trend in today's globally competitive market. To properly answer to the need of the companies to deliver integrated solution, from the mid-2000s, several research groups have worked on the development of methodologies to support companies along the engineering phase. Even if a plethora of methodologies and methods have been developed to support the Product-Service System (PSS) creation, there is still scarce attention on the way value is co-created with the customer. It becomes essential to change the perspective of the methodologies and to identify methods able to change the customer's role from a passive user to an active co-creator of value. In this context, the aim of this chapter is to understand which methods can be used to enhance value co-creation through an active involvement of the customers along the PSS engineering process.

scholarly journals Product-service systems in Egypt: a multicase evaluation of field repair

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Aly Owida ◽  
P.J. Byrne ◽  
Cathal Heavey ◽  
Khaled S. El-Kilany
Keyword(s):  
Emerging Markets ◽  
Emerging Market ◽  
Structural Difference ◽  
Structured Interviews ◽  
Repair Service ◽  
Supply Networks ◽  
Content Type ◽  
Product Service ◽  
Country Culture ◽  
Product Service Systems

PurposeThe purpose of this paper aims to evaluate field repair within product-service system (PSS) models operated by multinational manufacturers in the Egyptian emerging market to better understand the unique characteristics of this evolving market and to identify differences compared to established markets.Design/methodology/approachCase research was conducted on multinational manufacturers providing field repair services in Egypt. The sample is made up of 12 companies across different industries using convenience and purposive sampling. Data were collected using structured interviews.FindingsThere is no common model for field repair PSSs provision in the Egyptian emerging market even within the same industry, which is influenced by several factors. One of these factors is the market type being emerging or established. However, some commonalities have been found between some industries such as computer, telecommunications and document processing. Yet, there is no structural difference in the supply networks used to provide field repair service offerings in the Egyptian emerging market compared to established markets with the trend of outsourcing evident as a main attribute of a PSS in emerging markets. The main differences between established and emerging markets are related to country, culture and customer factors, which are market-based. Among the main challenges and risks that internationalized manufacturers face in Egypt, is the low level of customer awareness.Research limitations/implicationsFindings are limited to the studied cases and industries; yet, internationalized firms must deal with some unique challenges and difficulties in emerging markets.Practical implicationsThis paper assesses PSS requirements and provides deeper insights for companies looking to provide or expand manufacturing-based offerings into the Egyptian emerging market.Originality/valueThis paper contributes to the evolving research on PSSs, particularly in emerging markets through identifying and describing different field repair PSS models in the Egyptian emerging market.

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