On the Use of Blockchain in Industrial Product Service Systems: A critical Review and Analysis

Abstract

A product lifecycle can be understood as a chain of events experienced by a product. These events do not only include the actual production but also service offerings which accompany the product throughout its life. This leads to integrated product and service offerings and Industrial Product Service Systems (IPS2). Major challenges in this context are product tracking and tracing, the triggering of service and the delivery of service. A new technology that holds much promise in addressing these challenges is blockchain. In response, this study first introduces blockchain technology before it discusses major opportunities in the context of IPS2. For example, blockchain inherently creates a synchronized database of all transaction at each node while smart contracts allow for responsive action. However, there are also challenges. For example, large amounts of redundant data, irreversible contracts and, consequently, reduced competition. While blockchain holds much promise, more needs to be done to unlock its full potential in the context of IPS2.