Type Of Product-service Systems Research Articles

Sustainable value creation through customization for smart PSS models: a multi-industry case study

PurposeThis study is a reference for manufacturers who are promoting their product-service system (PSS) development. Currently, improvements in both digital customization and sustainability for various smart PSS categories have been considered rarely. This paper addresses this research gap by developing relevant models.Design/methodology/approachThe development trends of customization-oriented PSS are described in a literature review. An in-depth multiple-case study methodology is adopted, and seven manufacturing companies are sampled. The goal is to identify digital customization measures that can be employed on representative smart PSS models and to explore how these models can create sustainable value.FindingsThis study provides valuable insights by uncovering a synthesis framework for achieving customization of the product/use/result-oriented smart PSSs, and the relevant representative smart functions are summarized. This identifies how digital customization capabilities can improve sustainability, including direct economic value for customers as well as additional social benefits and environmental improvements during customization.Originality/valueCurrently, the influence of digitalization on customized offerings and the relevant impact on sustainability development have not been fully addressed to date. This study provides comprehensive information with a reference value for digital customization transformation among the three main types of smart PSS.

Investigation of Product–Service System Components as Control Points for Value Creation and Development Process

Since the early 2000s, product–service systems (PSS) have become a research concern because the benefits provided cover many aspects. PSS is divided into three types, namely, Type 1: product-oriented, Type 2: use-oriented, and Type 3: result-oriented. PSS is a system comprising different components. As a system compiler, the components are the starting point for the value-creation process and continue to impact the PSS’s life cycle. However, elaboration of PSS components in previous studies has lacked. This situation indicates an urgent need to investigate PSS components and, thus, our evaluations of the value creation and the developmental processes of PSS seek to be broad and divergent. The investigation that forms the purpose of this article includes an elaboration of the PSS components, a calculation of the PSS components’ importance levels, statistical testing of the differences in importance levels due to PSS type, correlation testing between components, and a determination of the PSS components concerning the sustainability aspect based on the perspective of customers. The investigation began with the development of a questionnaire and a reliability–validity test. In addition, we identify the PSS components, test the difference in importance level using the Mann–Whitney test, and survey customers to determine the sustainability-related components. This article’s findings can be used to specify the critical point for value creation and PSS development. The elaborated PSS components are products, services, actors, stakeholder relationships, and technology. The difference in importance level indicates that PSS Type 2 customers perceive a distinction in the importance of technology. The essential components of each type of PSS are distinct, necessitating the use of different development strategies, including for sustainability aspects.

Product-Service Systems: A customer engagement perspective in the fashion industry

The current fast fashion model fostering high consumption causes consequential damages to the planet and society, facts that highlight the need to curtail its growth throughout more sustainable solutions. Among these solutions is engaging fashion customers in Product-Service Systems (PSSs), which are oriented towards dematerializing fashion consumption by offering bundles of products and services. Drawing from the social exchange theory, this research sheds light on the benefits customers seek to engage with various coexisting product-oriented and use-oriented PSSs in the fashion industry. A quantitative study among 477 customers in Belgium reveals that customer engagement with PSSs in the fashion industry is a function of the benefits that customers expect to reach (economic, pragmatic, cognitive, personal, hedonic, and societal expectations) and their demographic characteristics (gender and age). Depending on the expected benefits and demographic characteristics, customers were found to engage with different types of PSSs. Accordingly, fashion companies should leverage customers’ expected benefits and demographics when developing PSSs and communicating about these PSSs.

A value-driven method for the design of performance-based services for manufacturing equipment

Industrial services are increasingly becoming more relational and customer-oriented, due to manufacturers’ adoption of servitisation approaches and product service system offerings. Challenges remain regarding the effective design and delivery of these new offerings, and the understanding of their actual value for both providers and customers. This work focuses on one specific type of product service systems in the context of manufacturing equipment: result-oriented or performance-based services, which aim at delivering an outcome rather than selling the equipment to the customer. A proposal of a value-driven method for their design that engages the customer in the process is presented. This new method has been applied to a real industrial life setting through an application case, involving the service provider and its customer, and targeting manufacturing equipment within customers’ plant. Results indicate the effectiveness of this prescriptive approach. Reported benefits from participants refer to its flexibility, adaptability and applicability for different types of equipment, as well as its potential to help providing a modular service portfolio adequate to equipment specific context and requirements.

Consumer acceptance of product–service systems as alternative satisfiers of consumer needs for sustainable development

AbstractAs an alternative method of production and consumption in the pursuit of a sustainable society, product–service system (PSS) involves consumers in the process of value creation. This study uses an online survey comprising three questionnaires to investigate consumer acceptance of PSSs based on their expectations of the benefits of three types of PSS: product‐, use‐, and result‐oriented. The results indicate that consumers have higher expectations of the process benefits of result‐oriented PSSs and outcome benefits of product‐oriented PSSs. Furthermore, the results of general linear models indicate that consumers' intentions to purchase PSSs are influenced by expected benefits and consumer innovativeness. High levels of innovativeness among consumers moderate the effects of consumer expectations of outcome benefits on purchase intentions. This result implies that consumers who have lower levels of innovativeness exhibit reluctance to adopt PSSs, although they realize the benefits.

Use of a product service system in a competing remanufacturing market

The use of product service systems to promote remanufacturing has been long considered. However, customer acceptance of pure product service systems is lower than that of traditional business models. This study examines the environmental and economic impacts of product service systems in a competitive remanufacturing market. To analytically and numerically evaluate three typical types of product service systems, we develop a two-period stylized model to capture the key elements that drive the original equipment manufacturer's strategy choice. Our results show that a product-oriented product service system acts as a coordinating mechanism between the original equipment manufacturer and third-party remanufacturer, resulting in an environmentally friendly product design and increased profit for both firms. Use-oriented and results-oriented product service systems allow the original equipment manufacturer to retain product ownership and deter the third-party remanufacturer's entry, resulting in greater economic and environmental efficiency. Although a results-oriented product service system performs best if customers highly value results-oriented product service systems, it may be less beneficial for the original equipment manufacturer if customers are unaccustomed to paying only for function.

Famoc Depanel: innovating product-service systems through functional spaces

Learning outcomes Identify how value is created through a product-service system (PSS). Recognize the different types of PSS and their characteristics at an economic and environmental level. Design a business model for a PSS that allows to generate economic and environmental value in a sustainable way. Case overview/synopsis On October 15th of 2014, Javier Ramirez, Chief Executive Officer of Famoc Depanel, was in his office in Bogotá, Colombia, thinking about a decision he had to take. Either Famoc Depanel continued in the traditional office furniture market generating new lower-cost products, and continued facing the informal competition or the company risked accepting a new business that the National Tax and Customs Direction of Colombia (DIAN, the acronym according to its name in Spanish) had proposed and give its business a complete turnaround. Either way, he would keep his commitment to innovation and environmental care. Complexity academic level This case is appropriate for use in sustainability and entrepreneurship courses with contents about business models based on PSS. This case can be used at undergraduate and graduate levels. It is recommended that students have prior knowledge about business models and the Canvas Business Model methodology. Supplementary materials Teaching Notes are available for educators only. Subject code CSS 11: Strategy.

A Product Service Supply Chain Network Equilibrium Model considering Capacity Constraints

With the further development of manufacturing servitization, the supply chain established by enterprises has gradually evolved into a product service supply chain. The introduction of service flow has made supply chain management more complicated. In this paper, we build a product service supply chain network composed of raw material suppliers, service providers, manufacturing integrators, and customers. The equilibrium model for decision-makers at all levels is established by variational inequality. In particular, we emphasize the impact of product and service capacity constraints and changes in the product service integration ratio on network equilibrium. The results show that, while capacity constraints on production tend to stabilize and unify the market price, service-related capacity constraints polarize the customer pay price. That is to say, product capability constraints limit the quality of product service systems, while service capability constraints limit the types of product service systems. Furthermore, the introduction of service flow and integration with products creates a more closely networked relationship between the upper and lower layers of the product service supply chain, and an increase in the service proportion will increase the network equilibrium profit.

Sustainable offers for drying and storage of grains: Identifying perceived value for Brazilian farmers

The grain drying and storage process currently practiced in Brazil is mostly accomplished by firewood combustion, with a high demand for natural resources, lack of safety for operators, and a high rate of residue and pollutant generation. Brazil is the third-largest producer of grains, and public policies should restrict the firewood drying method as of the year 2020. To solve this problem, a startup developed a technology to dries grains based on oxyhydrogen combustion, using only green energy and water. This study contemplates the assessment of farmers concerning perceived value attributes and willingness-to-pay of a Sustainable Product-Service System. This solution is a mix of tangible products and intangible services offered simultaneously to solve post-harvest problems. A large survey comprising 354 small, medium, and large farmers in the South region of Brazil was conducted to evaluate the value attributes allocated by farmers for their acceptance of a new technology of grain drying and quality preservation. In this survey, to assess farmers’ perceptions were applied offers based on three types of Product-Service System: options of purchasing equipment with corrective maintenance services (product-oriented Product-Service System), renting equipment with corrective and preventive maintenance services (use-oriented Product-Service System), and complementing services for the management of quality, information, drying and storage of grains (result-oriented Product-Service System). The survey results allowed the establishment of the attributes deemed necessary by farmers, who revealed preference towards the purchase offer (56.5%) over the rental offer (43.5%), emphasizing the inclusion of the maintenance service. It is concluded that to implement complete service (maintenances types and process management) offers investments are still necessary to educate farmers in the use of management technologies. The best offer to delivered value to Brazilian farmers is acquired in purchase modality composed by drying machines, preventive maintenance, silo storage, and corrective maintenance.

Exploring Opportunities of IoT for Product–Service System Conceptualization and Implementation

Product–service systems (PSS), integrating physical products and services, currently play a crucial role in sustainable economies. In addition to the highly competitive global economy, the emergence of new digital paradigms is supporting the shift toward servitization. Although the great potential of such paradigms is recognized by both practice and research, their implications for PSS are not yet clear. In particular, features of Internet of Things (IoT), such as total connectedness and ubiquity of smart sensors and actuators, provide various new opportunities for PSS. This study explores such opportunities by conducting structured literature review and 13 interviews. We organize the findings in two folds: First, we introduce four degrees of IoT involvement in PSS business models and elaborate the opportunities that they create for different types of PSS. Second, we present the key technologies and approaches that IoT provides concerning PSS lifecycle management.

Archetypical consumer roles in closing the loops of resource flows for Fast-Moving Consumer Goods

Abstract After the depletion of their consumable components, Fast-Moving Consumer Goods (FMCGs) become obsolete. In an attempt to close the loop of resources (i.e. products, components or materials) FMCGs can be designed with revalorisation services. In these product-service systems (PSSs) consumers are assigned a key role in closing the loops of resource flows. To understand and define this role, we dissected eighteen examples of PSSs. From this analysis, four dimensions emerged that characterise distinct aspects of the PSSs: the form of obsolescence; the change of resources from obsolete to operative or recoverable; the prerequisite activities required of consumers for revalorisation; and the facilitators of activities (i.e. investments and incentives). These dimensions were used to model four data-driven archetypical roles of consumers named after the interaction between consumers and the resource in the obsolete state, namely keep, bring, consign or abandon obsolete components. The research concluded that revalorisation always takes place in designated locations. The roles that consumers fulfil in closed-loop PSSs involve carrying out activities to position resources in such locations. The roles always come at a cost, but PSSs can be designed to reduce it. PSSs can also be designed to induce a perceivable value of obsolete resources, which can be used to increase role fulfilment. This research presents a comprehensive understanding of the roles of consumers in the specific context of closed-loop FMCGs, identifies tactics to increase the fulfilment of these roles and suggests further research on behaviours and PSSs to understand the roles of other stakeholders in various type of PSSs.

Circular Innovation Framework: Verifying Conceptual to Practical Decisions in Sustainability-Oriented Product-Service System Cases

Product–service systems (PSSs) have significant sustainability potential. However, limited knowledge is available on the choices to develop circular PSS solutions. The goal of this paper is to provide a circular innovation framework containing circular strategies to facilitate the decision-making in PSS circular innovation. A systematic literature review in combination with content analysis underpinned this research. The strategies were investigated in 45 PSS cases from the literature. A coding system was designed and employed to identify and organize the circular strategies and practices. The statistics techniques employed were frequency and co-occurrence analysis, which aimed to describe the synergies among strategies. The framework proposed contains twenty-one circular strategies. The practical perspective comprises the seventy-seven practices used for the operationalization of strategies. The framework can assist organizations in making strategic to tactical decisions when developing circular PSS solutions. The paper provides a panorama of the strategy applications among the PSS types. Finally, the research approach can be employed to continuously develop an understanding of the application of circular strategies in PSS and other fields.

A structural service innovation approach for designing smart product service systems: Case study of smart beauty service

Smart Product-service systems (PSS) are the emerging type of PSS that offer market value and dynamic intelligence combining products and services as solutions to consumers based on digital technology. To design a smart PSS with an effective way, a structural design approach is required. Nevertheless, only a few existing researchers discussed this topic. Aiming to bridge this gap, an integrated way is proposed for smart PSS design. This study refines a generic approach for structural service innovation approach which integrates the advantage of PSS engineering and service engineering for designing smart product service systems. The structural design approach is based on the Theory of Inventive Problem Solving (TRIZ) incorporating with service blueprint named PRR method. Three design phases are demonstrated as verification of the PRR method by an elaborated case study of the smart beauty service. Based on PRR, three key design phases are integrated, i.e., (1) problem definition, (2) resolution generation, and (3) resolution design. Empirical results and implications are collected and discussed to obtain valuable insights for value creation.

The contribution of Smart Glasses for PSS

Servitization is considered as a strategic option for manufacturers who need to develop higher-value offering. As a result, a manufacturer can include service to its product offer, in order to obtain different types of product service-systems (PSS). Several companies have been relying on digital technologies to enhance the PSS, especially those that allow data collection and sharing. Smart Glasses are one of the wearables digital tools that can provide more advanced service solutions. However, this technology is still emerging and, therefore, empirical research on its use for servitization is still scarce in the literature. Thus, this paper aims to provide empirical evidences of the contribution of Smart Glasses for the provision of maintenance services in manufacturing companies, as a part of the PSS offer. Using a case study approach, we analyze in a multinational manufacturer of elevators the difference in performance of maintenance technicians before and after adopting the use of Smart Glasses. The assessment is made by means of operational and managerial perceptions provided through semi-structured interviews. Our findings show that the performance of almost half of the technicians was improved with the use of Smart Glasses, however some technicians had a decreased performance. The technology was more effective for technicians with less experience in maintenance services. Other external factors, as the aptitude for the technology, were relevant for the evolution in performance of these operators. Our results provide initial evidence that Smart Glasses can support the development of PSS, supporting a more advanced service offering.

A methodology for the modular structure planning of product-service systems.

Product-service system (PSS) is an important way of the transformation and upgrading of modern manufacturing industry, it is also one of core development trends of intelligent manufacturing. A PSS can be configured quickly and cheaply to meet the customer's personalized product and service requirements via a PPS design platform, and a modular master structure is the core of PSS design platform. When a PSS instance is configured, it needs to determine the module types and make decisions on the types of PSS firstly, so as to build a master structure for PSS. Therefore, the decision-making on module types and customization degree is a key step to establish the PSS modular master structure. This article proposes a five-step planning method for the modular structure planning of PSS. Firstly, the PSS module types are classified based on the Kano model. Then, bi-level decision-making on modules and its properties are finished by using conjoint analysis method, includes the customer's decision-making on modules and their properties, and the manufacturer's modules and their properties, which provides support for PSS modular optimization configuration design. Finally, the proposed methodology is validated through the case of power transformer. The proposed module planning method for the PSS modular structure helps to determine the module types for PSS services solution layer and generic part layer.

Base type selection of product service system based on convolutional neural network

Customer preferences for products reflect the product and service requirements of the Product Service System (PSS). Picking out and associating the proper product units and service units are the key point of configuring a product service system to meet the requirements of individual customer.Some intelligent algorithms are used in product selection, as well as in the design of products and services. However, existing selection methods are difficult to convert customer requirements into base types of PSS in highly complex mapping spaces. In order to realize the rational allocation of product service systems and provide crucial information for company staffs in product design department, we using convolutional neural networks to study the nexus of customer demand attributes and product service system base types in this paper. Through training the convolutional neural network to obtain the complex nonlinear mapping relations between customer demand attributes and product service system base types, and product service can be selected. The proposed method has been verified in the base type selection of CNC machine tools product service system.

Cost evaluation challenges for Internet of Things (IoT) based Product/Service-Systems (PSS)

Increasingly cost competitive Internet of Things embedded solutions support the transition of traditional business models to Product-Service Systems. One of the most challenging but rewarding PSS types is maintenance. This work aims to discuss the differences between a traditional time/use-based maintenance model in opposition to an IoT-enabled maintenance cost model, by conducting a case study in a machinery industry company in partnership with an IoT provider. Findings show that economy of scale is observed with a decrease in the need for repair visits. The ubiquitous nature of IoT allows for continuous customer support, reinforcing better equipment practices and increasing performance.

A systematic design approach for service innovation of smart product-service systems

Recent development and implementation of advanced information and communication technologies (ICT) (e.g. Internet-of-Things (IoT), Cyber-Physical System (CPS)) has triggered a promising market of smart, connected product (SCP), and hence, enabled the prevailing tendency of manufacturing value proposition towards a service-oriented manner, viz. Smart product-service systems (PSS). Smart PSS, as a unique type of PSS, aims to achieve individual customer satisfaction with less environment impact by utilizing SCP as the media and tool, to generate various e-services as a bundle. Its service innovation is enabled by a platform-based approach and generated in a data-driven manner. Moreover, the digitalization of users, things, manufacturers and service providers in the cloud-based environment also provides potential service innovation opportunities. Nevertheless, only few existing works discuss about the Smart PSS, let alone an effective manner with valid cases to support its service innovation. Aiming to fill this gap, this research provides a novel definition of Smart PSS, and proposes a systematic design framework for its service innovation with an elaborated case study of a personalized smart wearable. Meanwhile, other potential industrial applications are discussed as well to offer valuable insights to manufacturers in their servitization for value creation.

Cloud Manufacturing as a new type of Product-Service System

ABSTRACTIndustry 4.0 (I4.0) technology developments in Cloud Manufacturing (CMfg) are challenging traditional business models, and adapting these is key to a sustainable competitive advantage. In parallel, pay-per-use strategies are being discussed as an enabler to future sustainable societies. The general benefits of CMfg services are clear, but to date the actual business implications from a service provider perspective have not been discussed. This article explores new business model opportunities based on the idea of providing CMfg as a completely new type of Product-Service Systems. Technology developments and business recommendations are defined, considering the proposed business model targets the manufacturing industry as a whole. Manufacturers make use of their spare capacity by purchasing time on networked equipment on a pay-per-use basis. This allows costs to be brought down, whilst creating new revenue streams. It also increases machine hosts’ competitiveness by reducing investment costs and enabling instant manufacturing scalability. CMfg is then classified into three levels of machine autonomy, arguing that as technology develops intermediaries may slowly integrate vertically and eventually replace manufacturers by completely autonomous equipment. The proposed business model presents both a first step and a baseline point of reference towards bridging the gap between advanced manufacturing technology and new business development in the context of I4.0 (Smart Manufacturing).

Customer requirements for the continuous improvement of product-service system: a conceptual approach

Identifying customer requirements is a strategic element for consolidating product-service systems (PSSs) in the market. However, literature on empirical studies has devoted relatively little attention to this topic. The purpose of the present work is to identify PSS customer requirements by analyzing empirical studies. Toward this goal, we present here a structured systematic literature review. This study systematically reviews 269 articles published until 2015 in the PSS field. About 10% of the publications reviewed describe empirical studies that identify PSS-customer requirements. After analyzing the content of these articles, we identify 37 requirements clustered around three criteria: (i) type of PSS, (ii) type of business transaction, and (iii) customer requirements that relate to product, service, or general aspects of PSS. The empirical studies investigated in this literature review focused on the business-to-business context. This study support PSS provider meet customer requirements. Then, they will be more successful in offering the PSS.