Lessons learned from a successful industrial product service system business model: emphasis on financial aspects

Abstract

PurposeThe purpose of this study is to identify the elements of the product-service system (PSS) business model of a Brazilian company that has been running it for almost 50 years. It describes the PSS business model and gives special attention to the financial aspects of PSS implementation and to contingent factors of this emerging country.Design/methodology/approachThe research is based on a single case study. Data have been collected through interviews and document analysis. Results and implications are obtained using Canvas framework to structure information and comparison between theory and practice.FindingsResults described in this paper show that the PSS design and implementation can be strongly influenced by financial and contingent factors. This case indicates that the implementation of PSS business models can follow diverse paths and configurations to fit with companies’ organizational features, local regulations and economic factors, including mixed transactional models and less demanding financial assessments.Originality/valueThis paper provides a roadmap of lessons learned from a multinational manufacturer that has been following the PSS business model for almost 50 years. This paper offers key insights concerning financial aspects and contingency factors that might influence servitization adoption.