Product-service Systems Solutions Research Articles

Integrating object detection and natural language processing models to build a personalized attraction recommendation agent in a smart product service system

Product Service System (PSS) is a new business model that integrates tangible products and intangible services to better meet customer needs and expectations. In recent years, scholars had some efforts to enhance the capability of PSS with the support of artificial intelligence (AI) which is known as Smart PSS(SPSS). So far, most previous studies adopted a single model which cannot handle multiple tasks simultaneously that results in unsatisfactory services to customers. In addition, customer preference cannot be fully addressed to achieve personalization. Therefore, this study proposes a method that integrates multiple models into an SPSS with three steps: (1) Collect data and construct an appropriate object detection model. (2) Develop smart PSS solutions. Then, (3) Optimize the system based on feedback through Natural Language Processing (NLP) to provide customers with personalized services. An attraction recommendation case study with experiment is designed to verify the proposed method. The results show that proposed SPSS can optimize the system in time according to the feedback of users, and provide better personalized services. This research is the first research that utilizes applied both text and image data to extract customer characteristics to better capture the voice of customers.

A Gamified Approach to Engage Sustainable User Behavior in Product Service System Solutions

Product service system solutions encourage to share products, reducing manufacturing processes and increasing the product life. Therefore, this might contribute to offer more sustainable solutions to users, by considering the complete socio-ecological system, the context, the stakeholder relationship, among other aspects. Where the sustainability behavior of consumers and the data provided for new information and technology (ICT) devices are key factors in the development of solutions with a higher sustainability performance. Moreover, game elements and ICT have been used in different fields to engage users. The aim of this research is to investigate if a gamified approach motivates a substantiable behavior change in users of product service system solutions. Based on a literature review, a model is proposed and applied to a product service system case of a shared laundry facility in Sweden. The model was evaluated with experts semi-structured interviews and a survey with users of the shared laundry facility. Concluding that a gamified approach has a potential to motivate behavior change towards sustainability in product service system. In future research, the proposed model will be adapted to be tested in other product service system cases, with the purpose to improve it for its application in industry and education. 
 Keywords: strategic sustainable development, game elements, product development, smart PSS, behavior change.
 

HOW ARE EMOTIONAL ATTACHMENT STRATEGIES CURRENTLY EMPLOYED IN PRODUCT-SERVICE SYSTEM CASES? A SYSTEMATIC REVIEW UNDERSCORING DRIVERS AND HINDRANCES

AbstractAiming to decouple value creation from resource consumption, the Circular Economy is considered an alternative to the current linear model of production and consumption. Among the innovative circular business models, Product-Service Systems (PSS) have been recognized as a possible route to achieve enhanced sustainability performance through the extension of product lifespans and the reduction of product substitution. However, PSS may lead to rebound effects due to less careful behavior during the use phase, which compromises product durability. Currently, the effect of non-ownership models on product care is not yet fully understood, nor are the strategies that could enable better product care. This research aims to deeper comprehend the consumer-product relationships in PSS solutions, as well as to shed light on the potential role of emotional durability in PSS development for product attachment. In order to do so, this paper analyses twelve Product-Service System cases derived from a systematic literature review, categorizing the emotional attachment strategies in each case, and identifying how these strategies might hinder or potentialize PSS solutions.

DESIGNING WITH SELF-DETERMINATION THEORY: HOME-BASED DIGITAL EXERCISE INTERVENTIONS CREATING POSITIVE CHANGE

AbstractThe well-thought implementation of technology within the product-service system (PSS) will undoubtedly contribute to the increase of healthy life expectancy and to the improvement of the wellbeing of society. The ‘Exercise-Well’ project, explored the problem and solution areas related to home-based exercise through digital interventions. Students worked in pairs and expected to propose a PSS solution providing a type of sports/physical activities for individuals to support their wellbeing. The proposed solutions were encouraged to create positive change especially through the integration of self-determination theory (SDT), but also be functionality suited to the persona. The project had the goals of directing students: i) to learn how digital technologies can be best tailored to assist people to exercise; ii) to consider engineering and healthcare domain constraints for utilizing convenient technological methods and integrating relevant hardware and software components; and iii) to motivate people by integrating autonomy, competence, relatedness into their design proposals. The paper demonstrated how SDT can be integrated into the design process, and how home-based digital exercise interventions can lead to creative solutions.

Food markets as circular digital hubs: Prototyping enabling ICT solutions for urban food systems

The challenges posed by the environmental sustainability and circular transition of food chains increasingly see the emergence of practices that link strategies and policies to territorial pilot projects that connect physical and digital infrastructures. This aspect is particularly evident in the change of urban production–transformation–distribution–consumption models. They are the basis of a complex system that influences individual and collective behaviours, life within neighbourhoods and the intertwining of incoming and outgoing food flows as the waste flow. The article will discuss the insight emerging from REFLOW, an EU H2020-funded project. It runs from June 2019 to May 2022, aiming to build an integrated approach for developing new participatory design and co-design practices dedicated to innovative and circular urban metabolisms to promote circular solutions capable of bringing environmental, social and economic benefits. In particular, the Milan Pilot involves the municipality of Milan, local makerspaces and FabLabs, agri-food enterprises and other local stakeholders. They collectively worked on municipal food markets to upgrade them into circularity hubs. The Milan Pilot – named ‘Food Market 4.0’ – concerns the design and prototyping of three product–service systems solutions to increase the circularity of the municipal covered markets and their offer service related to agri-food products. The solutions implemented are linked to a data layer that will be the basis of a city-wide renewal process of the 22 other ones. The prototypes could represent some of the building blocks of the datafication of the food distribution metabolisms and the start of a new interactive process of selling connected with other possible service offers.

Service trends and the forest-based sector – an analysis of wood construction, the bioeconomy and evolving product service systems

This thesis examines service trends in the operating environment of the forest-based sector on the level of companies and the evolving industrial production systems. The analytical framework is based on sociotechnical transitions research and service research knowledge bases on services and ongoing organizational changes in production and the markets. Three empirical studies have been conducted to detect service trends by investigating: 1) role of services in the European RDI roadmaps of the forest-based sector and parallel industries, 2) distribution of value and business model changes in the supply networks of industrial wood construction, and 3) market offerings and service innovation in sustainable housing construction projects in Finland. The empirical studies demonstrate evolving product service systems (PSS) in the further downstream customers of the forest-based sector, exemplified here by the construction sector. A game changing question for the forest-based sector is whether its industries and organizations focus on serving the PSS of today or whether they will seek to contribute to the next generation of PSS solutions, exemplified here by the potential for system change in construction regime. None of today’s PSS models alone capture the future PSS, but alternative scenarios are needed and assessment of their implications for the forest-based sector and future bioeconomy.

A Methodology for the Design and Engineering of Smart Product Service Systems: An Application in the Manufacturing Sector

The combination of servitization and digitalization is increasingly changing the economy and society at the global level towards sustainability goals. Companies are shifting their business models, typically oriented to selling products, towards providing bundles of products and services and integrating them with technologies enabling data collection and analysis, resulting in the so-called smart Product Service Systems (PSS). Different approaches and techniques have been put forth to design PSS and, more recently, smart PSS, but they continue to primarily concentrate on establishing value propositions and ignore the question of what sort of operational data can be gathered and used to deliver the PSS solution. Therefore, manufacturing companies willing to expand their portfolio with new advanced services nowadays still face multiple challenges. To address this gap, this study proposes the Service Engineering Methodology for the engineering of smart PSS (SEEM-Smart), which takes into account the trade-off between customer satisfaction and internal efficiency with a focus on data gathering and information flow. The methodology is then applied in a real-world setting. The case study shows the application of the SEEM-Smart for engineering a new data-driven service offering enabled by a cloud-based platform supporting the service provision.

Adding sustainable value in product-service systems business models design: A conceptual review towards a framework proposal

Product-Service Systems (PSS) are offered to deliver superior value propositions to customers while achieving better results for business organizations. To achieve these benefits, PSS business models should be designed to cover improvements in sustainability's economic, environmental, and social dimensions. Nevertheless, these sustainable aspects regarding PSS business model are dispersed in the literature and generally not considered when developing a PSS. In this sense, this study is a conceptual literature review aiming to synthesize PSS and business model publications from a sustainable value perspective. The review was developed in three stages to cover a diversity of publications on PSS and business model. Based on the literature content analysis, this paper deals with PSS value architecture components: value proposition, creation, delivery, capture, and value network. A set of opportunities to enhance sustainable production and consumption were pointed out with regard to the PSS business model's value architecture components and sub-components. Creating sustainable value propositions could be improved by maximizing utilization of resources and skills, employing effective operations, and aligning the product-service system solution with the triple concern people-planet-profit. The developed framework aims at contributing to both the development of theory on PSS and servitized business models. In addition, the framework also contributes to enhance PSS business models focusing on sustainable and responsible practices.

Designing Industrial Product-Service System (PSS) Pilot Projects in Manufacturing Companies: A Proposed Process for Product and Customer Selection

AbstractThis paper proposes an approach for capital goods manufacturers to design Product-Service System (PSS) pilot projects by selecting appropriate products and customers. The authors conducted a single-case empirical study as a part of an ongoing action research project to maximise the learnings from a pilot project while minimising expenditure in extensive trial and error PSS solution testing. Two sets of criteria were elicited for product and customer selection, respectively, followed by a description of the ideal product and customer attributes for each of the three most common PSS archetypes.

Case Study Research to Foster the Optimization of Supply Chain Management through the PSS Approach

The optimization of a product’s whole life cycle has become a mandatory task for manufacturers seeking to deal with circular economy requirements while gaining competitiveness in the market. In order to achieve such a sustainability goal, alignment of production, distribution, and field service activities is needed. In the literature, numerous studies indicate the product–service system (PSS) approach as one of the most promising business models to combine the needs of manufacturers and customers in an efficient and effective manner. However, PSS solutions aimed at practically optimizing supply chain management have scarcely been addressed. In order to reduce this gap, the current study proposes a procedure based on the PSS Functional Matrix, the Screening Life Cycle Modelling (SLCM) method, and stock management theory to optimize aftermarket services based on market demand. A case study in the medical equipment sector, where market demand can fluctuate during the contract period, is presented. The analytical results show beneficial effects in terms of both costs and environmental impact, suggesting the need for further research to augment knowledge on PSS and supply chain management. In particular, the PSS allowed the company to customize the manufacturer’s business model, adapting the supply of aftermarket services to varying customer needs.

An Iterative Design Method from Products to Product Service Systems—Combining Acceptability and Sustainability for Manufacturing SMEs

Manufacturing small- and medium-sized enterprises (SMEs) play a crucial role in the economic development and resource consumption of most regions. Conceptually, a product-service system (PSS) can be an effective way to improve the sustainability of manufacturing SMEs. However, the construction of PSSs requires enterprises to integrate a large number of product and service resources. Moreover, current PSS design methods mostly construct a new set of highly service-oriented PSS solutions based on customer needs while seldom considering the combination of acceptability and sustainability for manufacturing SMEs at the initial stage of design, which may lead to the difficulties in applying PSS solutions beyond enterprise integration capacity or result in the waste of existing product resources. Instead of constructing a new PSS solution, this paper proposes the treatment of existing product modules as the original system. The PSS solution is iteratively constructed with the upgrade of the original system in a gradual way, which is driven by systematic performance (this process can be suspended and repeated). Phased iterative design solutions can be applied by manufacturing SMEs according to their development needs. The analytic hierarchy process (AHP), Lean Design-for-X (LDfX), design structure matrix (DSM), and Pearson correlation coefficient (PCC) are combined in an iterative design process from customer needs and system performances to PSS solutions. The feasibility of the proposed method is verified through the iterative design case from electric pallet trucks to warehousing systems. It is proved that this method is more sustainable and easier to be accepted by manufacturing SMEs than existing PSS design methods through in-depth interviews with entrepreneurs.

Digital Twins of Operational Scenarios in Mining for Design of Customized Product-Service Systems Solutions

The paper presents an approach, based on the development of digital twins, to support the transition toward electromobility and autonomy in the mining industry, by supporting the design space exploration of future operational scenarios based on different construction equipment and mining site configurations. With such an intent, the paper presents an approach combining systems and systems-of-systems simulations to run trade-off analysis based on different product-service systems (PSS) configurations. Additionally, the paper integrates the “operational context” variables in PSS design simulations to create a digital twin of a “mining operational scenario” customizable for the specific configurations of each mine. The paper exemplifies the proposed approach by contextualizing in a reference mining site describing how the multi-dimensional simulations have enabled PSS trade-off analysis and PSS sensitivity analyses, and how operational context variables are integrated into the digital twin of the operational scenario.

Preparing for smart product-service system (PSS) implementation: an investigation into the Daimler group

This paper aims at investigating the main factors behind advancing the integration of products and services in the Brazilian subsidiary of Mercedes-Benz (MBB), and how Smart PSS has been perceived by other business units of the Daimler Group. We conducted an in-depth qualitative single-case study research to investigate the critical steps preceding the implementation of a smart PSS. The study was based on the main tactical areas of a PSS business model which was applied to MBB’s possible integration of their equipment (called Fleetboard) in a smart PSS solution. The findings demonstrate that the internal culture of a product-centric automotive manufacturing firm can prohibit the sales of services, even when service technologies are available. On the other hand, financial pressures can create the sense of urgency required for the firm to appreciate the necessity of change. The process of change is too complex, since it requires capabilities in key areas such as the law, marketing, networking/partnerships, design, sustainability, and organisation and human resources management. Our study shows how the company considers alternative options in order to reduce organisational barriers, develop partnerships and legal competence to offer PSS contracts, as well as seeking alignment between design, marketing and sustainability requirements.

CHINESE PRODUCT-SERVICE SYSTEM INNOVATIONS ENABLED VIA GOVERNMENTAL POLICIES: THE E-SCOOTER CASE

AbstractTogether with increasingly saturated and commoditized global markets companies are driven to shift their business focus, adopting a strategy where customer perceived value is in the spotlight, and where products are bundled with services to offer Product-Service Systems (PSS).In this research we study the emergence of PSS solutions in the Chinese market via a selected case study on e-scooters, based on the governmental decision to ban fossil-fuel scooters in the late 90s and how this has spurred both a fossil-to-electric transformation and a product-to-function transformation.As seen in this research PSS is also an approach that is working well in the Eastern society and especially in China, based on governmental policies. It is gradually being adopted and applied in local industries significantly by China's leading internet companies (Didi, Alibaba etc). The PSS concept represented by e-bike cases in China has gradually penetrated into different industries. With governmental decisions as the key turn-point, it can be seen in practice and development that China's related service industry is using e-bike PSS to carry out the new business model from selling e-bikes to providing service-oriented solutions.

Sustainable Product-Service Systems Customization: A Case Study Research in the Medical Equipment Sector

The paper proposes a Product-Service System (PSS) methodology for customizing solutions to different patterns of use while achieving a better environmental performance than a stand-alone product. The approach is based on combining the Quality Function Deployment for Product-Service Systems (QFDforPSS) and the Screening Life Cycle Modeling (SLCM) tools. QFDforPSS is augmented by the Fuzzy Analytical Hierarchy Process (FAHP) to reduce service-related ambiguities and uncertainties on the one hand and better define the product and service characteristics of the solution on the other. The SLCM evaluates the possible outcomes by determining the environmental impact and comparing it with the manufacturer’s current solution. A case study at a manufacturer of medical diagnostic equipment illustrates the use of the approach depicting the possible benefits that can arise: the PSS solution can be customized to fit customers who intensively use the product and consumers with a more moderate use. This offers flexibility and an optimized life cycle through easier maintenance, upgrades, and end-of-life schemes. Concretely, it shows how the PSS approach can enhance the development of sustainable solutions that can be adapted to varying and future customer needs, such as adjusting current solutions to new requirements, i.e., adapting existing products to COVID-19 detection and different levels of use.

A function-oriented optimising approach for smart product service systems at the conceptual design stage: A perspective from the digital twin framework

The smart product service system (PSS), as an emerging business paradigm for value proportions, has attracted increasing interests from multidisciplinary backgrounds; this state of affairs has been triggered by advances in information technologies such as the Internet of Things (IoT), smart connected products (SCPs), and many others. In order to achieve a successful Smart PSS, the optimising approach plays a significant role in the development of Smart PSS, particularly at the conceptual design stage, by increasing the practical value of such systems and sharpening their marketing competitiveness. However, few studies have addressed the optimisation of Smart PSS, as it is a newly coined term with high degrees of uncertainty and complexity. The key to successful Smart PSS development is improving its systematic ideality to sharpen its competitiveness in the market. To fill the research gap, this paper proposes a function-oriented Smart PSS optimising approach based on the framework of digital twins (DT), with the aim of improving Smart PSS solutions at the conceptual design stage. To achieve this, a hybrid modelling approach for Smart PSS is first proposed by integrating the function modelling approach derived from the theory of inventive problem solving and the five-dimensional DT framework, which is applied to analyse the coupling and correlations among elements in both the physical and digital spaces. Subsequently, a triangular fuzzy number (TFN)-based calculation algorithm was applied to evaluate and rank the functional values of all components constituting the targeted Smart PSS with reference to their functional importance and functional roles. Based on the results of this functional value ranking, an optimising method is proposed to refine the Smart PSS concept by increasing the overall systematic ideality through the implementation of trimming, a systematic innovative tool that emphasises ‘reduction’ in solving engineering design problems. Finally, an intelligent cleaning robot Smart PSS is used as an illustrative case to address the feasibility of the proposed method.

An Agent-based Model for Flexible Customization in Product-Service Systems

Product-Service System (PSS) models offer an integrated service solution to create value for businesses. In the high-value manufacturing sector, value creation for maintaining market competitiveness and improving customer satisfaction is a challenging task. Designing an effective PSS solution depends on integrated service, and product requirements and constraints. Thereby, PSS contract decisions can be significantly influenced by customers’ requirements, and also product and service features. However, existing literature primarily focuses on the impact of service requirements on the PSS contract decisions. Moreover, the existing insights for PSS customization mainly consider hysteretic customer requirements rather than forecasting the requirements under product and service uncertainties. In this paper, an agent-based cost-benefit analysis simulation model is implemented for the PSS contract decisions context. Moreover, a sensitivity analysis is conducted on service costs. Additionally, the effect of product remaining life on service contract decisions is analyzed. The simulation model considers stochastic uncertainty to study PSS contracts customization. The presented model supports PSS customization process by providing a quantitative tool that measures contracts’ profitability as early as the requirement elicitation phase. Furthermore, the bottom-up nature of the model, and the integration of probabilistic uncertainties enhance the flexibility of PSS customization. A case study of PSS contract decision in the machine tool industry is considered for assessing the validity of the presented model. Studies on different forms of service uncertainty highlight that the product failure rate has the most influence on the profitability of a service contract. Moreover, the impact of product age on profitability in an availability-based contract is more significant compared to a spare-parts contract.

A conceptual framework for Servitisation of the manufacturing companies to deliver Product–Service Systems solutions: A study case of the Indonesian Motorcycle Industry

This study develops a framework for the servitisation of manufacturing that covers area of upstream and downstream supply chain to provide a bundling of product and service. An integration of upstream and downstream supply chain is essential to support the Product–Service Systems. However, a research of integrating the upstream and downstream supply chain is still nascent. A Dynamic capability is used as underpinning theoretical framework for this research. Six hypotheses are developed to build the conceptual framework particularly to investigate the relationship between the supply chain capabilities and sustainability performance of Product– service systems in the Indonesian motorcycle industry.

A framework for data-driven design in a product innovation process: data analysis and visualisation for model-based decision making

The paper presents a four-layer framework for the application of data-driven design in a product innovation process. The framework builds on the Knowledge Value Stream and on the Product Value Streams of a product innovation process and indicates how data-driven activities shall be structured and organised in relation to the different phases of a model-based decision process. Visualisation is proposed as a communication enabler at the top of the framework to overcome the comprehensibility barrier between data science and engineering design models. The framework is implemented in the case study of a construction equipment encompassing the analysis of operational machine data and the experimentation of suitable visualisation techniques. Ultimately, a list of challenges for the implementation of data-driven design is presented, and the capability of the framework to support the transition toward data-driven design is discussed in relation to the emergence of product-service systems solutions.

A framework for data-driven design in a product innovation process: data analysis and visualisation for model-based decision making

The paper presents a four-layer framework for the application of data-driven design in a product innovation process. The framework builds on the Knowledge Value Stream and on the Product Value Streams of a product innovation process and indicates how data-driven activities shall be structured and organised in relation to the different phases of a model-based decision process. Visualisation is proposed as a communication enabler at the top of the framework to overcome the comprehensibility barrier between data science and engineering design models. The framework is implemented in the case study of a construction equipment encompassing the analysis of operational machine data and the experimentation of suitable visualisation techniques. Ultimately, a list of challenges for the implementation of data-driven design is presented, and the capability of the framework to support the transition toward data-driven design is discussed in relation to the emergence of product-service systems solutions.