A proposed framework for product-service system business model design

Abstract

Manufacturing companies still struggle to change their business models to offer product-service systems (PSS). The business model provides an integrating concept that allows the analysis of key dimensions involved in PSS development. However, less attention has been paid to how to plan PSS business models and their implementation. To overcome these challenges, this work proposes a framework for designing a PSS business model, considering the concurrent design of sustainable operations and business models. This work adopts a set of transdisciplinary research approaches, namely: (i) literature reviews; (ii) construction of the proposed framework adopting a concept-based approach; (iii) empirical studies involving two small PSS developers; (iv) assessment of the proposal; and (v) further improvement of the framework based on feedbacks, interactions with PSS developers, and literature reviews. The framework can represent a PSS business model by enabling the joint visualization of the components of the business model and their alignment. It integrates the PSS ‘value network’ based on ‘value proposition’, and includes ‘value drivers’ or sources of value creation, namely: novelty, effectiveness, complementarities, and loyalty. As a result, this paper contributes to offer a framework that adds to the PSS business model research, enabling the development of more sustainable PSS. In particular, it extends the identification of challenges concerning the PSS business model design. Finally, PSS business models should be designed to taken into account value-in-use, co-creation, and integration of the sustainable principles to generate superior value for the ‘value network’.