Product-Service Systems Design With Business Model Strategy Integrated: A Case Study of Urban Umbrella Rental Service System

Author(s):  
Yong Se Kim ◽  
Sang Won Lee ◽  
Jin Hui Kim ◽  
Heji Jeong ◽  
Ji Hwan Lee ◽  
...  

The value creation paradigm in industry has recently been shifting toward value creation through Product-Service Systems (PSS) where product and service elements are tightly integrated as systems to provide functional fulfillment. A successful PSS should satisfy economical, ecological and experience values. A systematic design method for PSS has been developed where activities of stakeholders are designed to support those values reflecting diverse context elements. Also business model aspects of PSS are considered using the category of the business model canvas together with strategies and protocols obtained from various real world cases. To illustrate the PSS design method with business model strategy integrated, a case of urban umbrella rental service system is presented.

Author(s):  
Leticcia Giovana Damha ◽  
Adriana Hofmann Trevisan ◽  
Daniel Guzzo Costa ◽  
Janaina Mascarenhas Hornos Costa

AbstractLittle study has been done on the adoption of End-of-Life (EoL) strategies on the medical devices industry, despite the reasons why it is an important area of study for the implementation of circularity. The rates of waste in the medical field are alarming and tend to grow. Though presenting a wide potential for EoL strategies implementation, the medical field is also inherently challenging, considering the rigid regulations and product's risk to patients life. This paper analyses 17 Product-Service System case studies identified in the literature. Eleven of them are from various fields of industry, whereas the other six are applied to the medical devices industry. The adoption of EoL strategies - namely repair, reconditioning, remanufacture and recycling - is analysed in each case and compared for the two categories of cases. This adoption is related to the sources of value creation in Circular Economy, to the PSS typology and, at last, special EoL treatment for medical devices is discussed.


Author(s):  
Tuomas Ritola ◽  
Eric Coatanéa

The focus in the businesses of manufacturing and selling technological devices has been increasingly shifting from USA and Europe towards Asiatic countries due to cost-effectiveness and lower costs of resources. In the areas where costs are inevitably higher, new measures have to be considered in order to be able to compete in the global economy. In this article, we study how can we utilize combined benefits of technological and service innovations in competing against the traditional product-oriented offerings. Product-service systems are integrated systems of products and services that create value through use for customers; the hypothesis in this article is that the efficiency of the business network can be increased by designing an integrated product-service system in comparison to the product-oriented approach. The hypothesis is studied via a real-life product-service system design case study of an automated recycling system, and system dynamics simulation is used to analyze the value created with the system in the related business network. In theory, product-service systems have many potential benefits in comparison to product-oriented offerings; identifying the benefits in practice in a case study increases the understanding of product-service systems design and facilitate their application in the industry.


2021 ◽  
Vol 13 (11) ◽  
pp. 6237
Author(s):  
Jean-Robert Agher ◽  
Patrice Dubois ◽  
Améziane Aoussat

Product-service system (PSS) innovation is acknowledged as a promising way to achieve sustainability through better exploitation of given resources. Nevertheless, PSS implementation is also described as increasing failure risk for companies. Despite that authors have identified paradoxical situations as a source of failure while implementing PSS, few researches have focused on understanding the origin of these paradoxes. In this review, we aim at understanding how methodologies cope with the challenges of designing PSS throughout the complete company perimeter as well as how to manage interactions within this perimeter to avoid potential paradoxes and thus failure. To do so, we will rely on the business model innovation literature and, more specifically, the business model canvas to define and discretize the company perimeter. As for the interactions and their imbrication regarding paradoxes appearance, we will refer to Putnam et al. theory to gain deeper understanding of paradoxes-appearance mechanism. Our bibliometric strategy brought us to analyze 14 international articles via our graph, enabling us to highlight that some poles’ interactions during design are partly unaddressed, resulting potentially in the creation of tension sources and therefore potential paradoxes and ultimately implementation failure. Considering this, future research works could focus on defining all significant interactions to consider while designing a PSS as well as the typology of answers to engage while facing tensions. In that respect, these works could provide actionable solutions to lower PSS implementation-failure risk, thus benefiting those who wish to achieve better sustainability through PSS.


Author(s):  
Cassio D. Goncalves ◽  
Michael Kokkolaras

Competitive markets and complex business-to-business environments compel manufacturers to provide innovative service offerings along with their products. This necessitates effective methodologires for developing and implementing sucessful new business strategies. This article presents an approach to model tactical and operational decisions to support the design and development of Product-Service Systems (PSSs). A combination of Quality Function Deployment and Design-to-Cost techniques is proposed as the first step of a PSS design framework that aids design engineers to determine the relations among value to customer, functional requirements, design variables and cost. The objective is to identify PSS design alternatives that deliver value to customer while respecting cost targets. An aerospace software case study is conducted to demonstrate the proposed approach.


Author(s):  
Katja Hölttä-Otto ◽  
Victor Tang ◽  
Kevin Otto

More and more manufacturing firms are transitioning to more serviced based offerings. It has been shown that a useful integrated bundle of services through a complimentary product can be a better business model than just adding support services to a product as tactical responses to customer needs. In order for companies to be able to define these integrated bundles in an efficient and systematic manner, a process is needed. In the paper we propose a new method to define modular services, ones that can be leveraged efficiently as driving entities, and which can be provided using several product offers. The service modules consist of services modularized for leveraging across several products. The method builds upon the foundations in product platform and modularity research extending it to product service systems. Further, we introduce alternative service modular platform leveraging strategies.


2021 ◽  
Vol 23 (2) ◽  
pp. 825-844
Author(s):  
Olle Karlsson ◽  
Jan Kellgren

When it comes to policy issues, a legal scholar would traditionally study sustainable taxation from a “top-down” perspective, thus focusing on the legislator and on rational ways to steer economic life in a more sustainable direction. Here, we start at another end—we think of it as “the bottom-calling-the-top” perspective—in order to highlight (1) a relatively new business model and its merits from a circular economy perspective, namely the so called Product Service Systems; (2) how this model faces initial problems regarding especially foreseeability and that it might therefore have problems making its breakthrough; and (3) thus might need help from the legislator. Business models typically emanate from economic life rather than from political discourse, hence the bottom-up perspective and the bottom-to-the-top expression. Within the “bottom-calling-the-top” perspective, the focus lies on the needs of the economic actors carrying out their business. This text will contribute to the integration of a “bottom-up” perspective into the sustainable taxation discussion, and we will illustrate how a proper dose of bottom-up perspective might contribute to a more viable discussion.


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