Combining Product Innovation With Service Innovation to Increase Value Created With a System

2013 ◽  
Author(s):  
Tuomas Ritola ◽  
Eric Coatanéa
Keyword(s):  
Service System ◽  
Real Life ◽  
Systems Design ◽  
Service Systems ◽  
Dynamics Simulation ◽  
Business Network ◽  
Product Service System ◽  
Product Service ◽  
Product Service Systems

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.

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.

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 SUSTAINABLE PRODUCT SERVICE SYSTEMS DESIGN: TOOLS FOR STRATEGICS ANALYSIS

2017 ◽  
Vol 3 (4) ◽  
pp. 149-156 ◽  
Author(s):  
Aguinaldo dos Santos ◽  
Naotake Fukushima
Keyword(s):  
Case Studies ◽  
Service System ◽  
Systems Design ◽  
Product Service System ◽  
Bcg Matrix ◽  
Sustainability Research ◽  
Product Service ◽  
Sustainable Product ◽  
Product Service Systems ◽  
Cumulative Experience

The present paper discusses the tools for phase of Strategic Analysis for the process of Sustainable Product-Service System Design. It explores the cumulative experience obtained at the Design & Sustainability Research Center of UFPR, on case studies developed with companies on the period between 2006 to 2016. When compared with the MSDS Method the case studies presented a stronger emphasis on tools derived from administration (ex: Ansoff matrix, BCG matrix, Canvas, SWOT chart, Slack matrix, Polarity Diagram) and, very importantly, from the service design community (ex: bluepring, customer journey, touchpoint matrix).

scholarly journals Development of a novel set of criteria to select methodology for designing product service systems

2015 ◽  
Vol 3 (2) ◽  
pp. 112-120 ◽  
Author(s):  
Tuananh Tran ◽  
Joon Young Park
Keyword(s):  
Design Methodology ◽  
Service System ◽  
Service Systems ◽  
Clear Picture ◽  
Product Service System ◽  
Step Process ◽  
Design Methodologies ◽  
Product Service ◽  
Product Service Systems

Abstract This paper proposes eight groups of twenty nine scoring criteria that can help designers and practitioners to compare and select an appropriate methodology for a certain problem in designing product service system (PSS). PSS has been researched for more than a decade and is now becoming more and more popular in academia as well as industry. Despite that fact, the adoption of PSS is still limited for its potential. One of the main reasons is that designing PSS itself is a challenge. Designers and developers face difficulties in choosing appropriate PSS design methodologies for their projects so that they can design effective PSS offerings. By proposing eight groups of twenty nine scoring criteria, this paper enables a “step by step” process to identify the most appropriate design methodology for a company's PSS problem. An example is also introduced to illustrate the use of the proposed scoring criteria and provide a clear picture of how different design methodologies can be utilized at their best in terms of application. Highlights This paper proposes eight groups of twenty nine scoring criteria that can help designers and practitioners to compare and select an appropriate methodology for a certain problem in designing product service system (PSS). This paper enables a “step by step” process to identify the most appropriate design methodology for a company's PSS problem. An example is also introduced to illustrate the use of the proposed scoring criteria and provide a clear picture of how different design methodologies can be utilized at their best in terms of application. An example is also introduced to illustrate the use of the proposed scoring criteria and provide a clear picture of how different design methodologies can be utilized at their best in terms of application.

scholarly journals How are End-of-Life Strategies Adopted in Product-Service Systems? A Systematic Review of General Cases and Cases of Medical Devices Industry

2019 ◽  
Vol 1 (1) ◽  
pp. 3061-3070 ◽  
Author(s):  
Leticcia Giovana Damha ◽  
Adriana Hofmann Trevisan ◽  
Daniel Guzzo Costa ◽  
Janaina Mascarenhas Hornos Costa
Keyword(s):  
End Of Life ◽  
Medical Devices ◽  
Value Creation ◽  
Service System ◽  
Service Systems ◽  
Medical Field ◽  
Product Service System ◽  
Product Service ◽  
Product Service Systems ◽  
Wide Potential

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.

scholarly journals Stakeholders in product-service systems: a preliminary analysis of the literature

2021 ◽  
Vol 16 (04) ◽  
pp. 01-38
Author(s):  
Lucas Magalhães ◽  
Marly Monteiro de Carvalho ◽  
Paulo Augusto Cauchick-Miguel
Keyword(s):  
Literature Review ◽  
Preliminary Analysis ◽  
Design Methodology ◽  
Service System ◽  
Service Systems ◽  
Product Service System ◽  
Product Service ◽  
Barriers To Collaboration ◽  
Product Service Systems

Purpose – The main challenges for adopting product-service systems (PSS) include defining the needs, engagement, collaboration, and the satisfaction of different stakeholders involved in the PSS life cycle. In this context, the following questions were raised in the study: what are the roles of stakeholders? what barriers exist that prevent stakeholders from collaborating and how can they be overcome? The aim of this study is then to answer these questions through a literature review. Design/methodology/approach – A systematic literature review was carried out focusing on the role of the different stakeholders through the lifecycle of product-service systems, the barriers preventing them from collaborating, and the practices used to overcome them, based on methods which combine bibliometric analyses as well as a content analysis. Findings – The results show that this subject continues to be relatively unexplored in the product-service system literature which contributes to the formation of a fragmented view of the role of the stakeholders and how the success of the systems is linked to this. Originality/value – This work identifies the main stakeholders and their roles, the main barriers to collaboration, and suggests some practices to avoid or mitigate them. Keywords - Product-Service System; Stakeholders; Literature Review.

Product-Service Systems Representation With Product and Service Elements and a Case Study

2011 ◽  
Author(s):  
Yong Se Kim ◽  
Sang Won Lee ◽  
Dong Chan Koh
Keyword(s):  
Service System ◽  
Function Analysis ◽  
Product Service System ◽  
Alternative Product ◽  
Product Service ◽  
Systematic Methodology ◽  
Representation Scheme ◽  
Product Service Systems ◽  
Service Blueprint

This paper proposes a new systematic methodology to schematically represent a Product-Service System (PSS) with product and service elements for effective PSS design. PSS consists of many product and service elements, which are innovatively connected with each other for satisfying customer needs. Therefore, in order to concretely realize a PSS concept, the detailed service and product elements should be properly defined, represented and configured. In this representation scheme, the service element contains service provider and receiver and their activities. In addition, several product elements are associated with a service element. These service elements and associated product elements are explored with the service blueprint method and PSS functional analysis. The concatenation of those many service and product elements is later conducted based on flows that are defined in the PSS function analysis. The case example is studied and it is demonstrated that this method can help to systematically identify critical service and product elements. In addition, alternative product elements and their configuration to be associated with same service element can be easily conceived and compared with the proposed methodology.

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