Abstract
Product System Service (PSS) was an excellent way to create new customer value under hyper-competition. Both product and service components were not used individually but in integrating product, service, and system and their valid combinations. This paper investigated the case study and was performed between June 2019 and April 2020. The is study aims to explore the introduction of the study's purpose of exploring the company was introducing the latest PSS model in its own " Energy Saving Company (ESCO) model" with its capitals in Indonesia. This new business model was able to tap potential business opportunities in the energy-saving industry. The study used these three methods – Soft System Methodology (SSM), General Morphological Analysis (GMA) & Business Model Canvas (BMC). In this paper, the authors performed SSM to reduce the gap that exists in the real world. GMA and BMC as other tools to ensure collaboration to form the new business model. The result showed that through PSS, the company could develop their own "ESCO model" under Energy Saving Agreement (ESA) or Energy Saving Performance Contract (ESPC), which was known as "saving back arrangement financing." By adopting PSS, the company could gain a competitive advantage since there was increasing demand for energy and limited supply in Indonesia; hence there was a vast, untapped opportunity in the energy-saving industry. Keywords: BMC, Case study, ESCO, Morphological, PSS, SSM
Highlights
Product System Service (PSS) was an excellent way to create new customer value under hyper-competition
The result-based compensation was derived from performance-based contracting of public-private partnerships (PPPs) in the mid-twentieth century
This paper provided an initial model for developing the Soft System Methodology (SSM) to transform the Product Service System (PSS) business model in Indonesia’s Energy Efficiency industry
Summary
Risk premium (responsibility or total cots risks). There is a need to determine all lifecycle costs. This paper would use Checkland’s Soft Systems Methodology (SSM) to illustrate current practices on how an ESCO’s company changed the energy-saving market structure by introducing a new PSS business model innovation Figure 1. The changes happened due to new technological, innovative services, supply chain management, optimized cost structures, and unique resources Such a shift in corporate development was known by deliberately producing business model ideas based on the morphological thought process. The business model was a coherent depiction of how an organization directs its business with its products and services It provided the basis for implementing strategies to help business managers change their business models and create customer value propositions. The new business model of Product System Service (PSS) was an excellent way to create new customer value under hyper-competition. This paper identified a fundamental driving economic interest for each stakeholder
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