The Influence of Dynamic Business Models on IPS2 Network Planning – An Agent-Based Simulation Approach

Abstract

Industrial Product-Service Systems (IPS2) are delivered in networks consisting of IPS2 provider, customer and various suppliers of service and product shares. For successful IPS2 delivery, these networks must be managed effectively. In particular, having the right resources available when and where needed is crucial to delivering superior customer value. At the same time, innovative IPS2 business models increasingly gain importance and need to be considered during the organization of IPS2 delivery. Depending on the contracted revenue model, the objectives of IPS2 delivery planning can vary from one IPS2 to the other, with influences on required lead times and the capacity level, which needs to be maintained. Furthermore, several other business model characteristics, such as the risk distribution, property rights and process responsibility, will have an influence on IPS2 delivery, which need to be considered in IPS2 network planning.In this paper, an agent-based simulation approach for strategic IPS2 network planning is presented,which is able to cover and represent various business model-specific objectives, constraints and parameters. Different business models influence not only IPS2 functions and physical modules, but also the types, times and frequency of services, which need to be delivered. The described agent-based model is prototypically implemented. It can be applied as a decision-support system in the design and restructuring of IPS2 networks and for strategic capacity planning decisions. A scenario study is presented to evaluate the simulation approach and to showhow the influence of dynamic business models can be represented in IPS2 network planning.