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This chapter focuses on the emerging topic of business model innovation. The concept has already been mentioned in the previous chapters, and specifically in Chap. 1, during a preliminary discussion on different types of innovations, and then in Chap. 6, when introducing the concept of “Blue Ocean” strategy. Nevertheless, given its growing relevance in the field of innovation strategy, it is appropriate to dedicate a separate chapter to the topic. The subject will be discussed at first by providing some basic information and definitions, and then by exploring in depth two approaches that can be practically used to analyze and design business models.

Manufacturers are increasingly struggling with the transition from products to product-service-software systems. Our study takes stock of the current research on servitization and digital servitization to investigate the challenging transition process from product to more complex product-service-software systems. We examine how does the digital servitization journey unfold as sayings and doings, and how do intentional narratives guide digital servitization. The present in-depth single case study spanning 8 years reveals the emergent process during the transition of a leading solution provider from servitization to digital servitization. The study uses social practices, such as managers' sayings and doings, to map the change process that unfolds first as servitization and, in a second stage, as digital servitization. Even more importantly, this study unpacks the role of intentional narratives in shaping digital servitization as a lengthy change process. For managers, this study provides a detailed depiction of the servitization and digital servitization processes, and some intentional narratives for guiding the process. Thus, the process may be challenging but perhaps manageable by using intentional narratives as a strategic practice.

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.

Purpose The main objective of this study is to present a conceptual model of sustainable product service supply chain (SPSSC) performance assessment in the oil and gas industry. Design/methodology/approach Based on an in-depth study of the previous literature, the indicators related to PSSC performance assessment were determined. Then, exploratory factor analysis and confirmatory factor analysis were applied to identify and confirm the sub-criteria and criteria pertaining to the proposed model. Findings The obtained results identify ten criteria related to the proposed model as follows: “Environmental performance”, “Customer performance”, “financial performance”, “Information technology Performance”, “Social Performance”, “Risk performance”, “Logistics performance”, “Operational performance”, “Organizational performance” and “performance of innovation and growth”. Research limitations/implications As the present research was conducted in the Iranian context, caution should be taken regarding the generalizability of the obtained results. Originality/value Based on a set of the identified criteria, this study proposes a conceptual model of the PSSC performance assessment in the oil and gas industry which hopefully could be useful for other organizations in this industry and other organizations in other parts of the world.

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 organization and human resources management. Our study shows how the company considers alternative options in order to reduce organizational barriers, develop partnerships and legal competence to offer PSS contracts, as well as seeking alignment between design, marketing and sustainability requirements.

In this article, we introduce a protocol analysis-based approach to analyze the cognitive characteristics of conceptual ecodesigning of product-service systems (PSSs). We initially present a novel and generic model to represent the lifecycle stages of solutions offered by industry and we contextualize it to PSS based offerings. Based on this representation of the PSS lifecycle stages and that of its architecture, we propose a multi-level coding scheme and a protocol analysis-based approach to analyze the distribution of designers' cognitive effort on the following three dimensions: i) different lifecycle stages, ii) different aspects of PSS architecture and iii) ecodesign activities and environmental issues. We applied this approach to analyze a conceptual PSS ecodesign case, performed in a laboratory setting by a pair of experienced practitioners. The results clearly indicate the evidence of quantitative differences in the distribution of the designers' cognitive effort on the different dimensions of PSS ecodesigning and thus, confirms the applicability and utility of the proposed approach.

Digital transformation has become a mega trend topic for many enterprises globally. For some companies, customer interactions have been digitalized. But many companies still rely on physical interactions of customers with their products in the core value creation processes. Thus the key challenges for digital transformation efforts would be associating product-centered value propositions with digitalized services. In other words, the transformation of product-centered values into experience values co-created by customers with services supporting customers. The research goal of this paper is to identify different strategies for digital transformation in product-service systems (PSS) design so that diverse paths for digital transformation can be considered in designing PSSs. Three types for digital transformation strategies have been identified from PSS design cases conducted in a manufacturing servitization support framework project where PSSs have been designed for 15 manufacturing companies including SMEs and large companies with varying levels of digital technology. A classification for digital transformation strategies could be postulated with three primary dimensions and two supplementary dimensions.

To pursue business innovation with PSS, many different PSS concepts are designed and evaluated. Various business models of a PSS design concept are devised and evaluated as well. Evaluation of the economic sustainability of PSS business models is critical. This paper presents a systematic method to evaluate the economic sustainability of PSS business models using a system dynamics modelling template. System dynamics modelling task is challenging for practitioners due to the variety of variables comprising business model strategies and their complex interrelationships. To enable the modelling task, a system dynamics modelling template composed of six modules of customer acquisition, channel acquisition, profit creation, resource acquisition, PSS provision, and partnership pattern has been devised. The PSS business model evaluation method has been illustrated using a smart study experience management service system design case to demonstrate the proposed system dynamics modelling template can reflect the case-specific business model which consists of the particular business model strategies.

Product-service systems (PSSs) have attracted researchers in engineering design for the past decades. Recent advances in digital technologies have expanded the potential functionalities that PSSs could deliver and designers' repertoire of tools and techniques to make new value propositions. The key to the success of new value propositions is to achieve customer acceptance and continuous use. However, little is known about the precise routes by which customers accept and use PSSs over time and its dynamics. This conceptual study aims to provide an enhanced view of customer acceptance and continuous use of PSSs by integrating multiple theories and literature streams. In this paper, we suggest three propositions based on the key concepts found in our literature review—well-being, trust and control—, and illustrate a conceptual framework that represents the dynamics of customer acceptance and continuous use of PSSs. Based on the proposed framework, we outline further research questions that could advance our knowledge about design for continuous use of PSSs.

Thus far, researches related to sustainable product-service system (PSS) largely investigate the interrelationships of factors with a focus on consumer, and concentrate on the requirement identification for PSS design; few address the interactions of multiple value from different stakeholders in the sustainable PSS implementation. In this paper, the multi-dimensional value elements for sustainable PSS are recognized to maximize the mutual value among stakeholders and realize sustainable benefits in PSS, considering customer value perceptions, customer service requirements, sustainability potentials and partnership establishment simultaneously. Then the interdependencies of value elements are prioritized with a hybrid model, which incorporates Decision-Making Trial and Evaluation Laboratory (DEMATEL), Analytical Network Process (ANP) and grey theory. In accordance with cause-effect relationship, strength of interactions, as well as influential weight of criteria, the predominant value factors and the improvement direction for sustainable PSS are identified. The results of the present work can provide the decision-makers in manufacturing enterprise with theoretical guideline to implement sustainable PSS successfully from the perspective of multi-dimensional value coordination among different stakeholders.

International audience

Companies around the world have sought to produce sustainable products and services with less impact. The impact produced by the COVID-19 pandemic showed that the supply Systems Product-Service (PSS) with an emphasis on sustainability has grown to become one of the main strategic approaches used. The existence of an automated framework that can assist designers in creating a PSS that encompasses the preparation of products and services simultaneously, from its initial stages, has become extremely important. Thus, the objective of this article is to develop a Framework capable of organizing the necessary information for the development of product and service in an integrated way, using the development of information architectures rationale, such as TOGAF, so that in all stages there is fluidity and there are no duplicity terms in its development. The use of information architecture development methods to develop the PSS structure presents a great opportunity to carry out its mapping, thus ensuring that the model is suitable to represent real-world situations.

As manufacturing companies face a globally increasing consumption of resources and the associated environmental impact, sustainable solutions are gaining in importance for manufacturing companies. In this context, the life cycle extension of capital goods offers a promising approach to increase the resource efficiency. On this basis, a proactive, intelligent maintenance strategy is being developed as part of the research project Adaptive Remanufacturing for Life cycle Optimization of Capital Goods (ReLIFE). The associated preservation of a predefined machine performance level enables the realization of new business models. This paper provides a framework for the development of the theoretical and methodological foundations for a business model based on Adaptive Remanufacturing, derived from the current state of the art in the field of remanufacturing- and maintenance-based business models. The development process consists of the four steps - Status Quo, Business Context, Value Architecture and Business Model Characteristics - and is supported via the adoption of the Business Model Canvas as well as the St. Gallen Business Model Navigator. The Value Architecture, in which the focus is on the implementation of a Product Service System (PSS), represents the core of the business model. Instead of selling the product, only its usage is provided. The manufacturer, as PSS provider, retains ownership and is responsible for maintenance, remanufacturing and other services in order to keep control of the product. Moreover, the idea of ownerless consumption and a transparent financing model opens the market for new customers and enables economic potential by extending the use phase of the respective capital good.

Die Digitalisierung eröffnet produzierenden Unternehmen neue Möglichkeiten, Produkte, Prozesse und Geschäftsmodelle zu transformieren. So werden Problemlösungen in Form von industriellen Produkt-Service Systemen (IPSS), einer kundenspezifischen Kombination von Sach- und Dienstleistungen, zu smarten IPSS erweitert. Der Beitrag beschreibt ein Performance Management zur Steuerung dieser komplexen Angebote.

The shift of profit margins from products to services, has transformed traditional production equipment supplier industries to providers of Industrial Product-Service Systems (IPSS). IPSS is a new business model for consistent delivery of industrial products such as production equipment and manufacturing services (Manufacturing as a Service). However, procurement of IPSS between industrial companies (i.e. Business-to-Business - B2B) is more complicated compared to the case of products offered to consumers (i.e. Business-to-Consumer – B2C). The complexity in interaction between the involved B2B stakeholders, the lack of trust and high costs especially for Small Medium Enterprises have hampered the establishment of standardized e-marketplaces in a similar manner as in the business to consumer world. This research work presents an overview on the requirements to support supply-chain processes on a digital B2B platform as well as a discussion of the objectives and the benefits of this multi-sided platform.

PurposeThe aim of the paper is to explore the changing role of a logistics service providers (LSPs) to better support their supply chain (SC) partners on their journey of advancing their product-service systems through distributing manufacturing around the world. The purpose of this paper is to investigate a novel route towards service growth followed by the LSP by integrating upstream into the value chain and the resultant consequences in the configuration of the servitisation strategy, SC structure and allocation of roles.Design/methodology/approachA longitudinal exploratory case study design is followed. The case company is one of the world’s largest LSPs.FindingsThe study highlights how companies can transition towards the development of service solutions when not following a uni-directional, downstream pattern of integration in the value chain. The findings challenge the established model of servitisation as a forward uni-directional process across the continuum from goods to a service-focussed logic. They illustrate how companies can also move in a reversed direction, move possible back-and-forth or extend and restrict their position along the servitisation continuum.Originality/valueThe study reveals that service transition involves a deliberate developmental process to build capabilities as firms shift the focus of their product-service offering. It provides novel empirical evidence of how the service growth journey can manifest itself in practice. With insights into the benefits and challenges of distributed manufacturing, it also highlights some of the opportunities available to LSPs to expand their product-service offerings and some of the potential threats.

Performance based contract (PBC) is an innovative advanced service strategy for offering product service solutions. PBC aims at increasing customer value and reducing the costs of operations. However, manufacturers incur unquantifiable “hidden costs” while implementing PBC. This paper uses agency theory and service-dominant logic to build a theoretical framework to study the hidden costs of PBCs. The research uses a multiple exploratory case study approach to unravel the drivers of hidden costs during the design, delivery and adaptation phases of PBC. This paper derives findings from five PBCs from the UK defence industry. The analysis reveals four major hidden cost drivers (supplier relations, contract complexity, customer relations, and cost estimation problems) of PBC. The research refines the theoretical framework by linking the hidden cost drivers, PBC life cycle stages and engagement of the service network partners. It develops a set of propositions for guiding future research and managerial practices.

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.

The creative process of Sustainable Product + Service Systems (PSSs) that involve a variety of social, economic and environmental elements is a very complex process that can be characterized as a wicked problem. The following study highlights that, currently, the tools used in PSS assist in the system design process but often explore the design process intuitively based on the designer’s experience. When dealing with complex problems it is important to use a more structured design approach, which involves multidisciplinary teams to explore systematic design techniques. In this sense, a method recognized to assist in the process of creating complex systems is the heuristic. The use of heuristics is considered a cognitive strategy that not only accelerates the creative process, but also generates solutions, regardless of spontaneous creativity. In this article, an analysis of the creative potential of heuristics was carried out with the blueprint tool. The research method used included an unsystematic theoretical survey, followed by an exploratory case study. Therefore, it is intended to contribute to the detection of emphases and gaps in the literature and demonstrate through practical application, the interaction of designers with heuristic principles in the creation process of PSSs.

To realize a competitive product-service system, a manufacturer is required to change its closed business model and develop open and sustainable alliances with external partners. As an alternative business model, an open business model (OBM) is a new concept, replacing the closed model, that is highly dependent on the company’s resources. An OBM is realized via resource sharing and collaboration with external partners. By incorporating an OBM in its operations, a company can receive several benefits, such as long-term profits, by providing new customer value and diversifying risks due to uncertainty in the market environment. A considerable number of studies related to this concept have been conducted. However, a practical method for OBM design remains unavailable. It is therefore difficult to design an OBM via actual design procedures. To this end, the purpose of this study is to support a design for OBMs. To achieve this, eight dimensions of openness in OBMs are first identified. On the basis of these dimensions, the requirements for an OBM design guideline are defined, and the design guideline is proposed. The proposed design guideline includes three steps: requirement analysis, OBM design, and validation. The proposed method was applied in an OBM design workshop, and the usefulness of the design guideline was verified through an evaluation of the eight openness dimensions. Finally, directions for improving the design guideline are discussed as future works.

In recent years, product service system (PSS) has been paid more and more attention. Providing personalised products for customers is one of the most important services. The modularity based customisation is an effective means for it. For better customisation, the update of modular product structure (MPS) is necessary, which is the key to maintain the competitiveness of products. Therefore, the update approach of MPS for the life-cycle dynamic evolution is studied, and the problems that need to be solved emphatically are discussed. In view of the different objects concerned in the whole life cycle, a phased evolution system of MPS is constructed. Based on this, the driving factors, levels and ways of update are analysed accordingly. Then four analysis indicators are proposed to determine whether to update, and the technical supports of evolutionary update are illustrated. Finally, through the analysis of the process of dynamic evolution and update of micro-cultivator MPS, it shows that the dynamic update of MPS in the whole life cycle can maintain the ability of PSS to respond to market demand quickly, and lay a foundation for providing high-quality personalised service.

Product-service systems (PSSs) are regarded as one of the promising ways to contribute to a sustainable society. Despite the well-developed knowledge, PSS design lack of long-term perspective to treat related changes and uncertainties. To address this issue, this paper proposes a conceptual framework of sustainable PSS design for sustainability transition by integrating insight from design approach for system innovation and transition. Applicability of the proposed framework is illustrated through application to example of PSS development project for wildlife nuisance in a suburban city.

The development of product-service systems (PSS) requires the design of value propositions, which involves challenging activities. In the context of business model innovation, gamification is presented as a practical mechanism to support the design process. This study aims to create a prototype of a gamified approach to design PSS value propositions and to compare its application to a traditional design approach. Based on a design experiment, the advantages and problems for both approaches were evaluated, providing insights for further development of the new version of the gamified approach.

Servitization is today a common theme among manufacturing companies, with the goal of better addressing the needs of their customers. Digitalization is one key enabler of servitization. One aspect of this concept can be provided through digital product-service platforms, which may facilitate the enrichment of a market offer, as well as keeping costs under control. Platforms are in general a well-established concept for manufacturing companies, as enablers of rich product offerings based on a few components. Less is known, however, about how the ambition to create digital product-service platforms interplays with the business model innovation needed as a result of the servitization efforts, along with processes and organization. This paper identifies a number of challenges that manufacturing companies may face when undertaking platform development for services, based on an empirical study made in the Swedish company Husqvarna Group.

This study draws a holistic view of the supply chain with three service strategies – namely, after-sales service; maintenance, repair and operations; and the product-service system – by analysing over 71 articles in this field. In this investigation, the content analysis is used to scrutinize the research to establish the knowledge, reveal the research opportunities and propose research strategies. The supply chain for product-service system depends more heavily on the implementation of the cooperation, collaboration and integration principles in operation. However, a complete analysis reveals that those crucial principles did not embody in current literature. Current research also failed to discuss the service operation decisions by modelling the intricate relations among them in a broad product-service supply chain context. Thus, the future research directions include developing service demand forecasting models; combining the time-series methods and the causal methods; establishing service resource planning models; addressing the relations between service deliverables, service capacity and the service resource; and strengthening the quantitative evaluation of the product-service supply chain performance with a systemic view. Moreover, by addressing the principles of cooperation, collaboration and integration, the added values of this review are the proposed research strategies for integrated forecasting of product services, integrated product-service resource allocation and scheduling, and systematic performance evaluation of the product-service supply chain. The findings and the proposed research strategies develop an in-depth understanding of product-service supply chain applications and serve as a basis for future research.

Product-Service Systems (PSS) appears as an emergent subject, gaining the attention of many researchers, and an increasing interest of organizations. As many literature reviews have been conducted in PSS-related field, this paper aims to overview publications from 2006 to 2018 by highlighting PSS benefits and barriers. Content analysis was used to codify data collected in the publications. The main characteristics of the literature reviews are provided as well as a set of 36 PSS benefits and 24 barriers organized in categories and sub-categories. Analyzing PSS-related review papers allows identifying future research opportunities which can foster the design and implementation of PSS business models.

Der Beitrag beschreibt einen quantitativen und qualitativen Bewertungsansatz für Ideen beziehungsweise Konzepte hybrider Wertschöpfung für kleine und mittlere Unternehmen (KMU) unter Berücksichtigung existierender Fähigkeiten, erwarteter Erfolgspotenziale sowie dem Hybridisierungsgrad. This paper describes a quantitative and qualitative evaluation approach for ideas or concepts of hybrid value creation for SMEs (small and medium-sized enterprises), taking into account existing capabilities, expected potential for success and the degree of hybridization.

Evaluation is a pivotal element in Product-Service System (PSS) development and implementation. A proper evaluation is a perceptive foundation to adequately improve PSS which leads to effective PSS development and implementation. However, the previous studies reveal a deficiency in the comprehensive evaluation method which fully supports a structured assessment for PSS from a diverse perspective and performance category. This paper systematically reviews the PSS literature to identify the required pertinent elements of PSS evaluation. As a result, a conceptual framework of comprehensive PSS evaluation is presented.

In Industry 4.0, trends on Servitisation are intertwined with increased use of “smart technologies”, bringing light to Smart Product-Service Systems. Currently, Smart-PSSs need to cope with dynamic customer’s needs, which generates system requirements in a higher frequency, resulting in reconfiguration of such system. This research aims to study current issues regarding the reconfiguration of Smart-PSSs, focusing on flexibilization. An exploration of issues is done by a qualitative literature review, with results structured in a schema. This schema approaches issues which are not yet solved or addressed in literature, showing that systemic solutions are necessary to solve explored issues. A discussion of current limitations and trends in research is presented, bridging studied material and pointing out current Industry 4.0 technologies that might cope with the issues if approached systemically. The paper points to further research regarding a expansions on the literature review and next steps on solving current issues.

As a successful business strategy for enhancing environmental sustainability and decreasing the natural resource consumption of societies, the product-service system (PSS) has raised significant interests in the academic and industrial community. However, with the digitisation of the industry and the advancement of multisensory technologies, the PSS providers face many challenges. One major challenge is how the PSS providers can fully capture and efficiently analyse the operation and maintenance big data of different products and different customers in different conditions to obtain insights to improve their production processes, products and services. To address this challenge, a new operation mode and procedural approach are proposed for operation and maintenance of bigger cluster products, when these products are provided as a part of PSS and under exclusive control by the providers. The proposed mode and approach are driven by lifecycle big data of large cluster products and employs deep learning to train the neural networks to identify the fault features, thereby monitoring the products health status. This new mode is applied to a real case of a leading CNC machine provider to illustrate its feasibility. Higher accuracy and shortened time for fault prediction are realised, resulting in the providers saving of the maintenance and operation cost. Funding Agencies|National Natural Science Foundation of ChinaNational Natural Science Foundation of China (NSFC) [52005408, 61801175]; Shaanxi Provincial Education Department [20JK0922]; National Social Science Foundation of China [18XGL001]

International audience; The building use stage offers the opportunity to provide valuable and sustainable product-service systems (PSS)that enhance the buildings' value for the end-users. Many of them are delivered by networks of stakeholders that actively involve small and medium enterprises (SMEs). We have combined an existing literature review with the multiple stakeholders' feedback to identify several problems and define the main hypothesis: diverse and presented in a structural way information about PSS can contribute to a better understanding of the added value by multiple stakeholders. We have co-created a list of criteria, which were formed into the sustainability multi-criteria framework. The proposed framework also supplements PSS-specific criteria, such as PSS type, PSS collaborative partnership networks type, and PSS integration type. A list of findings related to the topic was declared to help further develop the study, such as the correlations between PSS-related and PSS sustainability-oriented criteria.

International audience; This paper describes the development of a conceptual frameworkto support the identification of value co-creation within the context of digitally-enabled Product-Service Systems (PSS). The frameworkwas developed based on five themes. It considershow and where value co-creation occurs andalso the translation of data into information that can become knowledge for individuals and organizations within the digitally-enabled PSS context. The modelbrings together the different actors and beneficiaries with a governance process that focuses on supporting value co-creationbyintegrating the information with data. The frameworksupportsnew innovation and improvements to existing PSS.

Goal: Present a holistic perspective of methods and tools for the development of Product Service Systems (PSS). Design/Methodology/Approach: The investigation was conducted in two phases. The first phase presents bibliographic and bibliometric analyses, where 132 papers were read in full. In the second stage, of conceptual development, bibliographic data was grouped and validated by PSS specialists through a questionnaire, whose responses were used to conceptualize a model for PSS development. Results: Elaboration of a concept of a model for the development of Product-Service Systems, capable of providing guidance for all stages of its life cycle. Limitations of the investigation: The proposed model was applied to the bike sharing business model. However, a limitation was the lack of some information regarding this case to apply some methods and tools proposed in the conceptual model. Practical implications: The model developed can be used as a guideline for the elaboration or improvement of a PSS proposal, since it provides structure and control to the business models. Originality/Value: The paper demonstrates its originality and relevance by presenting a model centered on a holistic approach, as it provides a perspective of the whole PSS life cycle. Thus, processes are planned and analyzed from the definition of requirements to the destination after use of the PSS.

The present study scrutinizes how an incumbent solution provider executes smart solution development (SSD). We aim to contribute to digital servitization research, which primarily focuses on either product, service, or software development, thus overlooking the integrative aspect of SSD. We unfold the holistic SSD development process in a single case study through 23 manager interviews, observational data, and strategic document analysis. The study extends the product-service innovations (PSI) literature by 1) identifying a set of innovation routines, such as collaborative, customer-focused, and decision-making, 2) demonstrating innovation management processes and practices associated with those routines, and 3) highlighting the co-alignment of innovation processes, routines, and practices to achieve improved outcomes from SSD. The study translates the empirical work into a framework and a set of propositions to guide future research. For managers, the study provides a framework and a set of capability-enhancing practices for a benchmark. Validerad;2022;Nivå 2;2022-11-29 (marisr)

Online reviews, as the main way of information sharing after purchase, are latent with a large number of customer demands. A systematic method for identifying customers’ common and individual demands of products service based on online reviews is proposed in this paper. Firstly, based on LDA topic model, this method conducts topic mining on the collected review document corpus to filter out keywords and reviews which are related to product service. Then, based on the influence characteristics of reviews, a modified-Louvain algorithm is proposed to divide the word co-occurrence relationship network of product service keywords into communities. Finally, according to the result of community division, customers’ common demands and individual demands of products service can be identified and derived. This demand identification result can provide a more detailed, effective, targeted and predictive information support for product service modularization, so that can facilitate the design, configuration and optimization of the subsequent product service solutions.

The focus of this paper is on the use-oriented Product Service System (PSS) adopted within the off-highway construction industry. A use-oriented PSS dictates that the product stays in the ownership of the provider and is made available in a different form to the customer (user), and is sometimes shared by a number of users. Extensive research has been carried out into PSS design and strategy, yet there is a research gap relating to the generation, analysis and management of such information and knowledge in a big data environment to support the implementation of a use-oriented PSS. This gap is a substantial barrier to the exploitation of use-oriented PSS research in the commercial world. A roadmap is presented that clarifies the data and structure requirements to enable OEMs to determine and validate their readiness level towards the adoption of a use-oriented PSS driven business model.

The dissemination of digital technologies enabled massive data generation and new forms of cooperation. Hence, a new type of innovation named digital innovation emerged. Digital innovation has evolved in different domains and contexts, one of which is called Smart Product-Service System (Smart PSS). Many research works have been done on the development of Smart PSS by leveraging various digital technologies and exploiting its digital capabilities along its lifecycle to generate personalized and innovative solutions. However, there are scarcely any works to explore how the digital innovation process can be manifested to fully exploit digital capabilities throughout Smart PSS development. Aiming to fill this gap, this research provides a theoretical basis for digital innovation in Smart PSS and investigates how it can be in line with the development of Smart PSS from an engineering lifecycle perspective. This work also provides a definition of Smart PSS from the context of digital innovation. A case study on smart office chair is employed to demonstrate the digital innovation process in the usage stage. This work can provide insight and guidance for Smart PSS development and further harness its digital innovation process.

Goal: Product-service system (PSS) is a business model implemented by organizations aiming at generating profitability and competitiveness, and contributing to sustainability. However, companies need to build up new skills to develop and implement PSS focused on business models that should be able to generate value. This context calls for a theoretical analysis with the objective of identifing characteristics of this type of business model by means of a literature review. Design/Methodology/Approach: A descriptive review was conducted, and 313 publications related to PSS business model were selected. A final set of 48 articles related to PSS and business models were identified as well as the number of publications per year and main journal. Mechanisms for generating value from the PSS business model and its components were described after content analysis. Results: Most of PSS business model publications were published in recent years with the main focus on sustainability. Fourteen business model components were identified from the literature to be considered when structuring a PSS, associated with value proposition, creation, delivery, and value capture mechanisms. The most common components were ‘value proposition’ and ‘key partners’, although their concepts need a clarification. The business model should be designed with a value-centric vision in an iterative process. Moreover, it must cover the interests of the entire PSS value network, considering environmental, economic, and social dimensions of sustainability. Limitation of the investigation: The analysis has not considered the related research field on servitization, and nor the publications related to the ‘value’ concept from interdisciplinary areas (e.g., marketing). Practical implications: Developing a PSS business model requires forming a value network, considering the interests and responsibilities of those involved for the generation of mutual value as well as the inter-organizational relationships. Originality/Value: As PSS as a business model is a promising field of study, this paper devotes more attention on developing this kind of business model.

Background Population aging is inducing governments to redesign their healthcare models. One policy measure aimed at reducing healthcare expenditures and improving services is to encourage people to age-in-place. Scientific research has been trying to find ICT-enabled solutions to the growing problem of elderly home care. However, such research is often technology-oriented and neglects the end-user perspective. It does not consider the real needs of older people and all stakeholders involved in their healthcare. Method A user-centered design approach was adopted with the involvement of older people, experts dealing with the aging population, and the whole stakeholders’ chain. Through surveys, focus groups, and brainstorming sessions, it was possible to determine the main features of the product service platform. Results Starting from a large-scale survey of elderly people living in Italy, this paper presents the requirements and the architecture of a product service platform aimed at improving the independence and elderly quality of life. This work proposes an elderly-centered platform that works as an aggregation point of an articulated social health system, provides multiple tailored services, and optimizes the use of local resources. Conclusions The involvement of the end-user and all the stakeholders allowed for the consideration of different perspectives and the creation of a value network that aggregates existing services, resources, and information with new opportunities to achieve common benefits. This work provides guidelines on how to develop this type of platform by exploiting the potential of each stakeholder without creating new barriers. Technology, caregivers, and society are combined synergistically to provide tailored services able to satisfy specific users’ needs.

Smart homes are a strong match for the characteristics of product-service systems (PSSs), but practitioners lack the knowledge necessary to approach their designs from a systemic perspective. Positing that smart home appliances (SHAs) are the building blocks of smart homes as competitive PSSs, this article investigates the attributes of SHAs as design elements and the advantages of PSSs as design goals. Based on systematic literature reviews and interviews with SHA experts in South Korea, the authors propose a revised set of SHA attributes and discuss the two focal areas for developing competitive PSSs with SHAs: smartness for personalized user experiences and smartness for expanded cooperation. The article contributes to the fast-changing smart home industry by capturing the attributes that define today’s SHAs, demonstrating that these attributes can contribute to the development of smart homes as a competitive PSS, and identifying areas of focus for those who develop SHAs and systems.

This article conducts a case study with a global logistics service value-added (GLSV) system using big data analytics (BDA), which is implemented in a machinery equipment manufacturing company to provide a multicategory product–service system (PSS) intended to enhance firm performance. Drawing on the product–service system (PSS) concept, application of big data analytics, and strategic information systems planning (SISP), the plan do check action (PDCA) concept is used to develop a research framework in order to achieve the target company's objectives through the use of a global logistics system. The current article considers a machinery and equipment company located in a developing country as the case study. Through the case study, it is ascertained how the case company develops a GLSV system with BDA applications that leads to achieving multicategory PSS applications. The results indicate that a successful multicategory PSS should consider customer demands in the system framework and construct innovative assisting functions to support customer requirements. The proposed model not only demonstrates that a firm's business models should apply big data to align product providers with multicategory product-and-service providers for the PSS in global supply chains but also proves that this approach will enhance competitive advantage.