scholarly journals A QFD-Based Evaluation Method for Business Models of Product Service Systems

2016 ◽  
Vol 2016 ◽  
pp. 1-15 ◽  
Author(s):  
Tianyang Li ◽  
Ting He ◽  
Zhongjie Wang ◽  
Yufeng Zhang
Keyword(s):  
Business Model ◽  
Design Process ◽  
Quality Function Deployment ◽  
Business Models ◽  
Evaluation Method ◽  
Real Life ◽  
Service Systems ◽  
Design Information ◽  
Product Service ◽  
Product Service Systems

Organizations have been approaching Product Service Systems (PSS) in unoptimized business model fashions. This is partially because there is ineffective evaluation of PSS business models. Therefore, a more sufficient evaluation method might advance the evaluation of PSS business models and assist organizations that are considering a servitisation strategy. In this paper, we develop a value oriented method by using the Quality Function Deployment (QFD) technique to employ correlations derived from the design information of PSS business models to evaluate these PSS business models. We describe the method applying steps and its practical application in a real life case study. This method improves the formulation of an evaluation step within a design process of PSS business models based on correlations of different dimensions of the PSS value and PSS business models; it allows a balance between the customer value and organization value that are delivered by PSS business models to be made quantitatively. Finally, it fosters the effective utilization of the design information accumulated in the earlier part of the design process to quantitatively evaluate whether a PSS business model is optimized for providing appropriate values for customers and organizations.

“The Bott om Calling the Top”—The Selling of Funct ion (PSS) as a Business Model for Sust ainability, in Need of Some Ass ist ance from the Legislator

2021 ◽  
Vol 23 (2) ◽  
pp. 825-844
Author(s):  
Olle Karlsson ◽  
Jan Kellgren
Keyword(s):  
Business Model ◽  
Business Models ◽  
Economic Life ◽  
Service Systems ◽  
Bottom Up ◽  
Legal Scholar ◽  
Policy Issues ◽  
Product Service ◽  
New Business ◽  
Product Service Systems

When it comes to policy issues, a legal scholar would traditionally study sustainable taxation from a “top-down” perspective, thus focusing on the legislator and on rational ways to steer economic life in a more sustainable direction. Here, we start at another end—we think of it as “the bottom-calling-the-top” perspective—in order to highlight (1) a relatively new business model and its merits from a circular economy perspective, namely the so called Product Service Systems; (2) how this model faces initial problems regarding especially foreseeability and that it might therefore have problems making its breakthrough; and (3) thus might need help from the legislator. Business models typically emanate from economic life rather than from political discourse, hence the bottom-up perspective and the bottom-to-the-top expression. Within the “bottom-calling-the-top” perspective, the focus lies on the needs of the economic actors carrying out their business. This text will contribute to the integration of a “bottom-up” perspective into the sustainable taxation discussion, and we will illustrate how a proper dose of bottom-up perspective might contribute to a more viable discussion.

scholarly journals Evaluating the Environmental Performance of a Product/Service-System Business Model for Merino Wool Next-to-Skin Garments: The Case of Armadillo Merino®

2019 ◽  
Vol 11 (20) ◽  
pp. 5854 ◽  
Author(s):  
Nynne Marie Bech ◽  
Morten Birkved ◽  
Fiona Charnley ◽  
Louise Laumann Kjaer ◽  
Daniela C. A. Pigosso ◽  
...  
Keyword(s):  
Business Model ◽  
Environmental Performance ◽  
Business Models ◽  
Climate Change Impacts ◽  
Service Systems ◽  
Lca Methodology ◽  
Merino Wool ◽  
Product Service ◽  
The Common ◽  
Product Service Systems

Circular business models are often enabled by means of product/service-systems (PSS). The common perception is that such business models have enhanced environmental performance when compared to conventional business models rooted in the linear economy. This article investigates the environmental potential of developing a use-oriented PSS business model for Merino wool t-shirts intended for use by the British Ministry of Defence as an alternative to the present supply system based on synthetic t-shirts purchased from sportswear clothing companies. To conduct the assessment, we apply the life cycle assessment (LCA) methodology to quantify and compare the climate change impacts and impact potentials of the proposed PSS business model and of a reference business model. Results showed that there could be significant contribution of quantifying environmental potential for PSS business models when justifying the transition to a circular economy. However, when adopting LCA methodology for this purpose, the design of the PSS needs to be well thought to overcome some of the identified challenges. The article concludes by making the case that LCA studies can support the definition, design and value creation of the product/service-systems in early development stages.

PRODUCT SERVICE SYSTEMS AS A DRIVER FOR BUSINESS MODEL INNOVATION: LESSONS LEARNED FROM THE MANUFACTURING INDUSTRY

2013 ◽  
Vol 17 (01) ◽  
pp. 1340004 ◽  
Author(s):  
VIVEK K. VELAMURI ◽  
BASTIAN BANSEMIR ◽  
ANNE-KATRIN NEYER ◽  
KATHRIN M. MÖSLEIN
Keyword(s):  
Business Model ◽  
Value Chain ◽  
Manufacturing Industry ◽  
Business Models ◽  
Business Model Innovation ◽  
Lessons Learned ◽  
Service Systems ◽  
Study Approach ◽  
Product Service ◽  
Product Service Systems

Firms increasingly rely on business model innovation as a means to face challenges of a world in transition. We identify the conscious integration of products and services, i.e., product service systems, as a valuable strategy to radically innovate product-focused business models. Applying an exploratory multiple case study approach, we uncover five distinct kinds of services that specifically help firms to innovate their business model. These are (1) business consulting, (2) comprehensive services, (3) educational services, (4) financing services, and (5) information management services. The influence of these services on three components of business model innovation (value propositions, value chain architectures, and revenue streams) is discussed. In total, our study emphasizes that integrating specific services with products is an important driver for business model innovations.

scholarly journals Product-Service Systems and Sustainability: Analysing the Environmental Impacts of Rental Clothing

2021 ◽  
Vol 13 (4) ◽  
pp. 2118
Author(s):  
Emma Johnson ◽  
Andrius Plepys
Keyword(s):  
Environmental Impacts ◽  
Business Models ◽  
Service Systems ◽  
Environmental Benefits ◽  
Fast Fashion ◽  
Product Service ◽  
Potential Impact ◽  
Environmental Savings ◽  
Product Service Systems

Business models like product-service systems (PSSs) often recognise different sustainability goals and are seen as solutions for the impacts of consumption and fast fashion, but there is a lack of evidence supporting the environmental claims of such business models for clothing. The research aimed to understand if rental clothing business models such as PSSs have the environmental benefits often purported by quantifying the environmental impacts of rental formal dresses in a life-cycle assessment (LCA) in a case study in Stockholm, Sweden. The effects of varying consumer behaviour on the potential impact of a PSS vs. linear business model are explored through three functional units and 14 consumption scenarios. How users decide to engage with clothing PSSs dictates the environmental savings potential that a PSS can have, as shown in how many times consumers wear garments, how they use rental to substitute their purchasing or use needs, as well as how consumers travel to rental store locations.

scholarly journals System Modelling and Analysis to Support Economic Assessment of Product-Service Systems

Systems ◽  
2021 ◽  
Vol 9 (1) ◽  
pp. 6
Author(s):  
Khaled Medini ◽  
Sophie Peillon ◽  
Martha Orellano ◽  
Stefan Wiesner ◽  
Ang Liu
Keyword(s):  
Business Models ◽  
Economic Assessment ◽  
Service Industries ◽  
Service Systems ◽  
System Modelling ◽  
Value Network ◽  
A Value ◽  
Product Service ◽  
Industrial Cleaning ◽  
Product Service Systems

The evolution towards more customer-centric operations within manufacturing and service industries gave rise to novel ways of value creation and delivery such as Product–Service Systems (PSS). PSS integrate tangible and intangible elements to create new values for both customers and providers. Therefore, a close collaboration is required among various actors in a value network to co-create values towards win–win gains. For companies to keep up with this pace, new decision support tools are needed to accompany PSS engineering and to adjust business models. This need is confronted with the scarcity of PSS-oriented economic assessment models and methods. This paper presents a comprehensive framework for the economic assessment of PSS. The framework relies on a novel combination of system modelling and analysis approaches to enable cost and revenue attribution to different actors in a value network. The applicability and relevance of the framework are demonstrated through a case study in the industrial cleaning sector.

Value-Driven Modeling of Tactical and Operational Decisions in Support of Aerospace Product-Service Systems Design

2015 ◽  
Author(s):  
Cassio D. Goncalves ◽  
Michael Kokkolaras
Keyword(s):  
Quality Function Deployment ◽  
Systems Design ◽  
Service Systems ◽  
Business Strategies ◽  
Functional Requirements ◽  
Operational Decisions ◽  
Design Engineers ◽  
Design Variables ◽  
Product Service ◽  
Product Service Systems

Competitive markets and complex business-to-business environments compel manufacturers to provide innovative service offerings along with their products. This necessitates effective methodologires for developing and implementing sucessful new business strategies. This article presents an approach to model tactical and operational decisions to support the design and development of Product-Service Systems (PSSs). A combination of Quality Function Deployment and Design-to-Cost techniques is proposed as the first step of a PSS design framework that aids design engineers to determine the relations among value to customer, functional requirements, design variables and cost. The objective is to identify PSS design alternatives that deliver value to customer while respecting cost targets. An aerospace software case study is conducted to demonstrate the proposed approach.

Module Definition for Product-Service Systems

2012 ◽  
Author(s):  
Katja Hölttä-Otto ◽  
Victor Tang ◽  
Kevin Otto
Keyword(s):  
Business Model ◽  
Support Services ◽  
Manufacturing Firms ◽  
Service Systems ◽  
New Method ◽  
Product Platform ◽  
Product Service ◽  
Alternative Service ◽  
Modular Platform ◽  
Product Service Systems

More and more manufacturing firms are transitioning to more serviced based offerings. It has been shown that a useful integrated bundle of services through a complimentary product can be a better business model than just adding support services to a product as tactical responses to customer needs. In order for companies to be able to define these integrated bundles in an efficient and systematic manner, a process is needed. In the paper we propose a new method to define modular services, ones that can be leveraged efficiently as driving entities, and which can be provided using several product offers. The service modules consist of services modularized for leveraging across several products. The method builds upon the foundations in product platform and modularity research extending it to product service systems. Further, we introduce alternative service modular platform leveraging strategies.

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