Product service system transition method: building firm’s core competence of enterprise

Abstract

Product service system (PSS), applicable in numerous fields, is an innovative business model integrating products, services, and supporting infrastructure. It has been known as a promising approach to realise sustainable development of both enterprises and environment. However, only a few studies were addressed to support the PSS transition of enterprises. Thus the aim of this study is to develop a PSS transition methodology, comprising a quantitative PSS classification framework and transformation procedures. In order to classify PSS typology, rough set theory is applied, and as a result, a set of classification rules is derived from the analysis of 40 contemporary PSS service providers based on their attributes and the decision rules. In addition, this study also proposes a PSS transformation process that considers firms’ core competencies and current PSS types. Moreover, the result also demonstrates the discovery of a new PSS type, platform-oriented PSS. The discovery and definition of this new type extend the current PSS typology. Finally, the proposed transition methodology is applied to an automotive company as a case study, illustrating the advantages and possibilities of this research.