scholarly journals Integrating Product-Service Systems with New Business Models Definition for Manufacturing Industries

2014 ◽  
Vol 5 (2) ◽  
pp. 64-84 ◽  
Author(s):  
Pedro C. Marques ◽  
Pedro F. Cunha
Keyword(s):  
Business Models ◽  
Service Systems ◽  
Service Development ◽  
Clear Understanding ◽  
Manufacturing Companies ◽  
Specific Product ◽  
Product Service ◽  
New Business ◽  
Product Service Systems ◽  
New Business Models

Nowadays, manufacturing companies are pressured to be competitive and innovative. Particularly this concerns the delivery of value to their customers. The assessment of the overall value chain, designed and implemented for a specific product and/or service, should be sustained by new business models (NBM), thus contributing to higher levels of customer satisfaction. Integrated product-services are assuming importance, allowing manufacturing companies to achieve longer and stable relationships with their customers. This requires, among other, organizational changes and novel methodologies for product-service development. In fact, an effective integration allows product-service innovation, which being exploited, contributes significantly to businesses' competitiveness and sustainability. In this paper, a “roadmap” for NBM definition and implementation is presented, along with a new methodology for Product-Service Systems (PSS) development. Two case studies are used to test both the roadmap and the PSS methodology. As such, this work is expected to contribute to a clear understanding of NBM and their integration in a methodology for PSS.

scholarly journals Integrating Product-Service Systems with New Business Models Definition for Manufacturing Industries

2014 ◽  
Vol 5 (3) ◽  
pp. 16-33 ◽  
Author(s):  
Pedro C. Marques ◽  
Pedro F. Cunha
Keyword(s):  
Business Models ◽  
Service Systems ◽  
Service Development ◽  
Clear Understanding ◽  
Manufacturing Companies ◽  
Specific Product ◽  
Product Service ◽  
New Business ◽  
Product Service Systems ◽  
New Business Models

Nowadays, manufacturing companies are pressured to be competitive and innovative. Particularly this concerns the delivery of value to their customers. The assessment of the overall value chain, designed and implemented for a specific product and/or service, should be sustained by new business models (NBM), thus contributing to higher levels of customer satisfaction. Integrated product-services are assuming importance, allowing manufacturing companies to achieve longer and stable relationships with their customers. This requires, among other, organizational changes and novel methodologies for product-service development. In fact, an effective integration allows product-service innovation, which being exploited, contributes significantly to businesses' competitiveness and sustainability. In this paper, a “roadmap” for NBM definition and implementation is presented, along with a new methodology for Product-Service Systems (PSS) development. Two case studies are used to test both the roadmap and the PSS methodology. As such, this work is expected to contribute to a clear understanding of NBM and their integration in a methodology for PSS.

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.

“The Bott om Calling the Top”—The Selling of Funct ion (PSS) as a Business Model for Sust ainability, in Need of Some Ass ist ance from the Legislator

2021 ◽  
Vol 23 (2) ◽  
pp. 825-844
Author(s):  
Olle Karlsson ◽  
Jan Kellgren
Keyword(s):  
Business Model ◽  
Business Models ◽  
Economic Life ◽  
Service Systems ◽  
Bottom Up ◽  
Legal Scholar ◽  
Policy Issues ◽  
Product Service ◽  
New Business ◽  
Product Service Systems

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.

scholarly journals Strategic Development of Product-Service Systems (PSS) through Archetype Assessment

2021 ◽  
Vol 13 (5) ◽  
pp. 2592
Author(s):  
Trine Brink Frederiksen ◽  
Marina P. P. Pieroni ◽  
Daniela C. A. Pigosso ◽  
Tim C. McAloone
Keyword(s):  
Business Models ◽  
Service Systems ◽  
Tool Support ◽  
Manufacturing Companies ◽  
Strategic Development ◽  
Initial Development ◽  
Product Service ◽  
Supporting Tool ◽  
Product Service Systems ◽  
Different Levels

Product-service systems (PSS) enable product-oriented manufacturing companies to differentiate their offerings and become more competitive, while creating more value for customers along with improved economic performance and, in some cases, reduced environmental impact. However, PSS development remains difficult for manufacturing companies due to limited prior knowledge about PSS and the strategic characteristics it entails. To guide the PSS development process, this paper presents a prescriptive approach composed of a tool and a method based on the use of PSS archetypes in the initial development stages of new PSS business models (BM). The proposed tool builds upon three PSS archetypes, combined with 10 factors for assessment of the best suiting archetype. The proposed method and supporting tool guide companies in five steps, from the beginning of a servitisation process to the initial PSS development. Based on an evaluation with a Danish manufacturing company, an improved version of the method and tool was developed and applied with 60 students specialised in PSS development. Results from the evaluation indicate that the method and tool support scoping new PSS BM through the selection and modification of a PSS archetype, encouraging servitisation and PSS development in companies with different levels of PSS experience.

scholarly journals Design of Product–Service Systems: Toward An Updated Discourse

Systems ◽  
2020 ◽  
Vol 8 (4) ◽  
pp. 45
Author(s):  
Johan Lugnet ◽  
Åsa Ericson ◽  
Tobias Larsson
Keyword(s):  
Business Models ◽  
Service Systems ◽  
Systems Science ◽  
Future Research ◽  
Cognitive Changes ◽  
Goods And Services ◽  
Product Service ◽  
New Business ◽  
Product Service Systems

The engineering rationale, composed of established logic for the design and development of products, has been confronted by a shift to a circular economy. Digitalization (e.g., Industry 4.0) enables transformation, but it also increases relational complexities in scope and number. In Product–Service Systems (PSSs), the combination of manufactured goods and services should be delivered in new business models based on value-adding digital assistance. From a systems science view, such combinations cannot be managed by the same approach as if they were one uniform system; rather, it is an interdependent mix of technical, social, and digital designs. This paper initializes an updated conceptual discourse on PSSs and provides a reflection on the expected challenges in the transformation from linear to circular models. For example, the role of systems thinking to guide early design stages is discussed and the importance of processes for creating shared visions at different systems levels is suggested to be addressed in future research. The intention is to formulate thoughts about radical cognitive changes in order to realize the PSS paradigm.

scholarly journals Exploring the Benefits of Productization in the Utilities Sector

2019 ◽  
Vol 11 (20) ◽  
pp. 5864
Author(s):  
Valerio Elia ◽  
Maria Grazia Gnoni ◽  
Fabiana Tornese
Keyword(s):  
Business Strategy ◽  
Business Models ◽  
Three Dimensions ◽  
Value Proposition ◽  
Italian Market ◽  
Product Service ◽  
New Business ◽  
Product Service Systems ◽  
New Business Models

The adoption of Product–Service Systems (PSS) in a business strategy is often mainly associated with the servitization process, where a service component is added to the product component in order to improve the value proposition of the company and better satisfy the customer’s needs. The productization phenomenon is far less studied in literature, but growingly prominent in today’s market. In particular, companies in the utilities sector have been exploring the potentialities of productization and proposing new business models for improving their offer to the customers, in order to be more and more competitive on the market. In this paper, we provide a first analysis and classification of productization strategies in the utilities sector, starting from experiences in the Italian market, with the aim of understanding which can be the main benefits of a PSS approach in this field, considering the effects on the three dimensions of sustainability (economic, environmental, and social).

scholarly journals Product-Service Systems and Sustainability: Analysing the Environmental Impacts of Rental Clothing

2021 ◽  
Vol 13 (4) ◽  
pp. 2118
Author(s):  
Emma Johnson ◽  
Andrius Plepys
Keyword(s):  
Environmental Impacts ◽  
Business Models ◽  
Service Systems ◽  
Environmental Benefits ◽  
Fast Fashion ◽  
Product Service ◽  
Potential Impact ◽  
Environmental Savings ◽  
Product Service Systems

Business models like product-service systems (PSSs) often recognise different sustainability goals and are seen as solutions for the impacts of consumption and fast fashion, but there is a lack of evidence supporting the environmental claims of such business models for clothing. The research aimed to understand if rental clothing business models such as PSSs have the environmental benefits often purported by quantifying the environmental impacts of rental formal dresses in a life-cycle assessment (LCA) in a case study in Stockholm, Sweden. The effects of varying consumer behaviour on the potential impact of a PSS vs. linear business model are explored through three functional units and 14 consumption scenarios. How users decide to engage with clothing PSSs dictates the environmental savings potential that a PSS can have, as shown in how many times consumers wear garments, how they use rental to substitute their purchasing or use needs, as well as how consumers travel to rental store locations.

scholarly journals System Modelling and Analysis to Support Economic Assessment of Product-Service Systems

Systems ◽  
2021 ◽  
Vol 9 (1) ◽  
pp. 6
Author(s):  
Khaled Medini ◽  
Sophie Peillon ◽  
Martha Orellano ◽  
Stefan Wiesner ◽  
Ang Liu
Keyword(s):  
Business Models ◽  
Economic Assessment ◽  
Service Industries ◽  
Service Systems ◽  
System Modelling ◽  
Value Network ◽  
A Value ◽  
Product Service ◽  
Industrial Cleaning ◽  
Product Service Systems

The evolution towards more customer-centric operations within manufacturing and service industries gave rise to novel ways of value creation and delivery such as Product–Service Systems (PSS). PSS integrate tangible and intangible elements to create new values for both customers and providers. Therefore, a close collaboration is required among various actors in a value network to co-create values towards win–win gains. For companies to keep up with this pace, new decision support tools are needed to accompany PSS engineering and to adjust business models. This need is confronted with the scarcity of PSS-oriented economic assessment models and methods. This paper presents a comprehensive framework for the economic assessment of PSS. The framework relies on a novel combination of system modelling and analysis approaches to enable cost and revenue attribution to different actors in a value network. The applicability and relevance of the framework are demonstrated through a case study in the industrial cleaning sector.

scholarly journals Growing-Service Systems: New Business Models for Modular Urban-Vertical Farming

2021 ◽  
Vol 5 ◽  
Author(s):  
Michael Martin ◽  
Maria J. Bustamante
Keyword(s):  
Urban Areas ◽  
Business Models ◽  
Fresh Produce ◽  
Service Systems ◽  
Small Scale ◽  
Market Expansion ◽  
Vertical Farming ◽  
Modular Units ◽  
New Business ◽  
New Business Models

To secure sustainable and resilient food systems, new approaches, innovations, techniques, and processes are needed. In recent years, urban farming firms have been developing and experimenting with innovative approaches to expand their offerings and connect with consumers in new ways. New business models are being developed to provide functions and services instead of traditional products to meet demands from consumers, retailers, and users. As such, modular growing systems are increasing in popularity to provide fresh produce, visual appeal, transparency, and other tailor-made functions and services in so-called “growing-service systems” (GSS). Using GSS approaches, firms are developing and providing modular and small-scale farms in restaurants, residential spaces, supermarkets, and other commercial spaces, often including a large degree of automation and optimization of digital solutions to remotely control their operation. Using qualitative methods, the aim of this study is to explore and analyze the development of these novel GSS systems, highlighting different strategies, business models, motivations, and challenges. The results illustrate the divergence in approaches to GSSs for vertical farming. This includes different scales of modular units and varying business models for capturing value from the combination of products and services. All of the systems include varying degrees of automation and digitalized solutions to ensure the services are monitored, which is done to improve growing conditions and improve the experience for the users. Business-to-business systems are being developed as both market expansion and awareness-building strategies, where modular units are provided as a rental or subscription model that includes a number of services. Business-to-consumer systems are being introduced as an alternative for consumers, particularly in urban areas, to have greater control and access over growing their own fresh produce. The modules are purchased by consumers, which includes a number of ongoing services from the GSS firms. By categorizing and exploring these systems, this article offers novel insights and a first endeavor to distinguish these new GSS systems in the growing segment of urban agriculture, controlled-environment agriculture, and product-service system literature.

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