Product-service System Strategy Research Articles

Anticipating promising services under technology capability for new product-service system strategies: An integrated use of patents and trademarks

Product-service systems (PSSs) have been the subject of numerous prior studies, most of which focus on presenting PSS strategies from a customer-centric perspective. This study offers a different approach to proposing new PSS strategies based on promising services that companies can implement using existing technology capability. First, business ecology networks consisting of goods and services are constructed using the trademarks of technology-based firms. Second, link prediction methods were applied to anticipate promising services. Third, patents were analyzed to determine whether the services can be developed using existing technology capabilities. Finally, a PSS portfolio map for establishing new PSS strategies for the target product is presented. Promising services and new PSS strategies are suggested according to whether they can be implemented using existing technology capability. A case study on wearable audio devices demonstrated the applicability and feasibility of the proposed approach. Indeed, promising services, such as self-reservation services and health and medical services, are suggested. A systematic approach and its quantitative outcomes are expected to have significant implications in practice as a support tool for decision-making regarding PSS strategy development. In addition, the proposed approach contributes to the existing literature by suggesting the broader use of intellectual properties.

Unintended Circularity?—Assessing a Product-Service System for its Potential Contribution to a Circular Economy

Product-service systems (PSSs) are seen as valuable facilitators of a circular economy (CE) on a business level. However, that PSSs contribute to a CE is not a given and is determined by the chosen PSS business model and strategy applied throughout the entire lifecycle. Thus, in order to support companies in implementing circular business models such as PSSs, an increasing number of frameworks and methods have been proposed in prior research. This article hypothesizes that many industrial companies are expanding to become PSS providers with neither such support nor a strong sustainability focus. There is a gap in the literature regarding the potential contribution of such PSSs to a CE. Thus, the research reported aims to provide initial insight regarding whether unintended circularity, i.e., an unintended contribution to a CE, may occur when becoming a PSS provider. Applying and adapting an existing framework for the assessment of PSSs’ potential contribution to a CE, the use-oriented PSS of an industrial company was assessed in-depth. Results regarding the relative resource reduction and the prospect of achieving absolute resource decoupling are reported and discussed. While relative improvements over product sales are identified, e.g., resulting from end-of-life efforts on reuse and remanufacturing, opportunities for additional enhancement are found, e.g., in adjustments of the PSS design process. Concerning absolute resource decoupling, a fundamental challenge lies in the use-oriented PSS’s dependency on an increasing number of physical components as the company’s business expands. This article advances the discussion on PSSs’ potential contributions to a CE with an in-depth empirical study. For practitioners, the results reported expand on important aspects of efficient and effective PSS provision throughout the lifecycle.

Complexity in Product-Service Systems: Review and Framework

This study systematically reviews the existing research literature on product-service-systems (PSSs) to analyze the nature and characteristics of complexity in the PSS context. While mastering the PSS strategy can become a competitive advantage for manufacturing companies, moving to providing advanced services through PSSs increases the complexity of the offering and its implementation. How the manufacturing company can manage this complexity plays a critical role for the success of its PSS strategy. Although research in PSS strategies has grown significantly in recent years, and the existing literature recognizes that complexity is a common feature in PSS, the nature and content of complexity experienced by manufacturing companies remains largely unexplored. Based on a systematic literature review approach, this study develops a conceptual framework of complexity in PSSs. Following systematic search and screening procedure, 23 articles addressing complexity in the PSS context are identified and form the sample of the review. Using content analysis methods, four dimensions of complexity in PSS are identified in the articles: multiplicity, diversity, interdependence, and variability. The four dimensions are explained and elaborated. The review demonstrates that a major research gap exists in the field, and thus suggest several research avenues for further studies.

An integrated product service system modelling methodology with a case study of clothing industry

Product-service system (PSS) is a business model designed to help enterprises achieve servitisation. PSS not only considers service-oriented logic to increase product value but also supports enterprises with waste reduction. An increasing number of studies have emphasised PSS development. However, much of the literature remains focused on separate development phases, such as idea generation or a specific product or industry application. An integrative system modelling methodology designed to help companies formulate a complete scenario is absent. This study provides a methodology for developing a systematic and complete PSS strategy. It combines failure modes and effects and importance-performance analysis to identify potential customer needs. A service-product development matrix and a product-service life cycle analysis are developed. Following the service concepts generation, grey relational analysis and scenario analysis are utilised to evaluate the alternatives. A case study involving the clothing industry was conducted to test the proposed approach. Results indicate the methodology can help service providers identify existing problems and develop service alternatives systematically. These alternatives can then be evaluated and the scenario which achieves the highest profitability, is the most environmental friendly, and is the most social friendly can be identified.

Business process support for IoT based product-service systems (PSS)

Purpose – The purpose of this paper is to propose a method for adopting an Internet of Things (IoT) enabled product-service system (PSS) considering business model and product enhancements. The method focusses on business process implications of IoT. The paper also discusses a real application of the proposed method to the machinery industry. Design/methodology/approach – Considering the IoT technologies available, failure mode and effects analysis is applied to identify what should be monitored in the product to minimize potential product failures. In parallel, in order to assist the company in deciding which PSS strategy to be followed, a Configurator of PSS proposals is applied. The results are derived to define the IoT architecture and the business process design supported by the selected IoT technologies. Findings – The main findings include the proposed IoT-enabled PSS adoption method, illustrated by the description of the application and its assessment. In addition, the identification of key process areas that are impacted by IoT is offered, namely: remote machine setup; corrective and predictive maintenance; material supply; product pricing; and information reporting. Research limitations/implications – The application of the method proposed is limited to one company. Future work includes extending the application of the method to other units of analysis. Practical implications – The method proposed can be considered by companies willing to increase product-service revenues based on IoT technologies. Originality/value – The IoT-enabled PSS adoption method is an approach grounded on the intersection theories of PSSs and the more technology-oriented IoT developments.

Cultural Barriers to the Transition from Product to Product Service in the Medical Device Industry

Manufacturing companies are increasingly moving up the value chain by expanding their value offering to include service components, namely Product Service Systems (PSS). Due to the fundamental differences between the provision of products and services, many struggle to effectively integrate the two into a single cohesive offering. This is particularly true of companies operating in the medical device field as, due to the high level of regulatory requirements and controls, implementation of the ‘soft' components of service provision is difficult. The aim of the research is to facilitate companies to move up the value chain from product to product-service provision. Once identified, barriers can then be directly addressed and overcome, thereby allowing the development of a cohesive PSS offering. This will be achieved by identifying existing cultural barriers in relation to the application of PSS strategy within a product-orientated business. This information can be used to facilitate the application of PSS models with produc-orientated companies. This paper details qualitative research, undertaken with eight product-orientated medical device companies and two service practitioners, which establishes, details and analyses the primary cultural barriers in relation to product to product-service transition. These cultural barriers are further extrapolated through a supporting literature research.

선택형 컨조인트 분석(Choice-based Conjoint Analysis)을 통한 제품-서비스 통합 효과 분석

PSS (Product-Service System) is a competitive strategy for a service company or a servitized manufacturer. We investigate the product-service integration effect in a mobile phone service industry. Using choice-based conjoint analysis, we measure main and interaction effects of product and service. We collected a sample of size 171 from a college student group in Seoul, Korea. We find the existence of the interaction effect of product and service in PSS and show the direction of PSS strategy using main and interaction effect. Keyword:Product-Service System, Choice-Based Conjoint Analysis

Towards a new framework: Understanding and managing the supply chain for product-service systems

In the modern global economy, the product-service system strategy is increasingly popular with manufacturers. However, to the best of our knowledge, the publication focusing on the supply chain model for product-service system is still scant. Based on the findings of a half-year investigation in an air compressor manufacturer in China, the article is trying to develop a comprehensive framework of supply chain for product-service system. By exploring the structure and the unique features of the supply chain for product-service system, the research leads to a better understanding of the subject. Following the analysis, the supply chain model for product-service system is developed and elaborated in the value co-creation, functional process management, and the enabling process management. It is hoped that the exploration will form the frontier basis for further research on supply chain for product-service system.

Balanced Scorecard as an Evaluation Tool for Product Service System Strategy Development

Balanced Scorecard as an Evaluation Tool for Product Service System Strategy Development