Product-Service System business model for plastics industry

Abstract

Traditional business models increasingly less accurately accommodate changes taking place in the market. Growing competition, sharing economy, digital transformation, corporate environmental responsibility, and increasing customer requirements exert pressure on enterprises to change their business mentality. One can easily observe the need for integrated, environment-friendly solutions that generate new value added to customers. To achieve that, we need new business models that would allow to discover new potential in new markets.In the face of dynamic market changes, traditional business models are increasingly less capable of addressing the growing competition, sharing economy, digital transformation, corporate environmental responsibility, and the rising demands of customers. There is a clear need for integrated, environmentally friendly solutions that generate new added value for customers. Achieving this goal requires the development of new business models that enable the discovery of potential in new markets.Therefore, searching for and creating new business models that would stand up to requirements is vital. These problems could be solved by a PSS considered a personalized business model operating in an extended time horizon. PSS is an opportunity to sell product functions and availability, as well as a perspective for multiple uses of products.This paper presents a pioneering attempt to develop a Product-Service System (PSS) business model specifically tailored for the plastics industry. An innovative approach consists in the integration of a machinery and a tool into a production unit and adding an array of services to it. This groundbreaking research, unprecedented in its scale, involved a comprehensive questionnaire-based study conducted across 60 plastics processing plants employing prevalent production techniques. The study is unique in its extensive scope and depth, as such an analysis of PSS business models within the plastics industry has not been previously explored in the open literature. The research methodology applied is thorough, covering a wide range of practical aspects crucial for the effective implementation of PSS in the plastics sector. This paper stands out for its detailed examination of 60 enterprises in the plastics industry, focusing on their interest in 95 services essential for the optimal operation of plastics processing plants and their engagement with representatives from the plastics industry. This extensive study offers valuable insights into the usage of machines and tools in plastics processing, as well as the specific needs, requirements, and challenges faced by businesses in this sector.Results of analyses demonstrate that interest in services differs depending on the size of an enterprise, processing technique, having a toolroom or not, product range, and the duration of breakdowns. A new PSS business model for plastics processing was built based on the analysis of PSS design methods and sectors to which they are addressed, PSS used in practice, plastics processing sector, questionnaire-based studies conducted among plastics processing plants, statistical analyses, advice and consultancy sessions with experts from the investigated industry, finances and trade patterns for machines. Until to date the question of precise design of such a business model for the plastics processing sector has neither been examined nor discussed or evidenced. The paper aims to bridge this gap. The approach to the issue was innovative, based on a questionnaire survey and consultations with experts which allowed to faithfully reproduce the current condition of the investigated sector. In addition, each service added on to the production unit underwent a detailed statistical analysis. The hereto presented business model is extremely comprehensive as it can be used in plastics processing plants of different sizes.