scholarly journals PSS Strategic Alignment: Linking Service Transition Strategy with PSS Business Model

2019 ◽  
Vol 11 (22) ◽  
pp. 6245 ◽  
Author(s):  
Mar’atus Sholihah ◽  
Tatsuru Maezono ◽  
Yuya Mitake ◽  
Yoshiki Shimomura
Keyword(s):  
Business Model ◽  
Business Models ◽  
Strategic Alignment ◽  
Success Factor ◽  
Strategic Objective ◽  
Transition Strategy ◽  
Strategic Direction ◽  
Product Service ◽  
Japanese Companies ◽  
Service Transition

One of the most promising business models towards economic circularity is product-service system (PSS). Despite its great potential benefits, shifting the traditional business model of a manufacturer into PSS business model commonly refers to service transition and triggers inconsistencies between strategic direction and organization arrangement at an operational level. The absence of alignment between the service transition strategy and the PSS business model is greatly emphasized as a crucial enabler, risk factor and key success factor of the service transition. However, limited academic works have concretely contributed to the strategic alignment. Through a systematic literature review, this paper proposes a PSS business alignment that enables the manufacturer to identify the strategic objective of its service transition strategy and align it with PSS business model. The theoretical version of the proposed framework is redefined and redeveloped through two cycles of action research involving 11 Japanese companies.

scholarly journals Sustainable business model for local council’s smart city initiatives: a systematic literature review

F1000Research ◽  
2021 ◽  
Vol 10 ◽  
pp. 1066
Author(s):  
Ezatul Faizura Mustaffa Kamal Effendee ◽  
Magiswary Dorasamy ◽  
Abdul Aziz Bin Ahmad ◽  
Azrin Aris ◽  
Saida Hargeum ◽  
...  
Keyword(s):  
Systematic Review ◽  
Business Model ◽  
Smart City ◽  
Business Models ◽  
Smart Cities ◽  
Success Factor ◽  
Sustainable Business ◽  
Local Authorities ◽  
Frugal Innovation ◽  
Online Databases

Background: Malaysia is embarking on sustainable, resilient, and prosperous living conditions initiatives. Malaysian cities are embracing the smart city aspiration through their respective local authorities. However, they face challenges regarding  funding allocation for smart city implementation. Local authorities primarily operate on a conventional business model. Based on their current business model, they are unlikely to sustain their smart city initiatives. A more financially sustainable business model is required by these local authorities to embark on smart city initiatives. This study presents a systematic review concerning the business models adopted by local authorities to implement smart cities. This paper also explores the applicability of frugal innovation towards developing a smart city business model. Methods: This article undertakes a systematic review based on combination sets of eight main keywords: smart city, business model, frugal innovation, local authorities, performance, inclusivity, technology and success factor. The search strategy includes journal articles and conference proceedings from five major online databases: Emerald, ProQuest, Scopus, IEEE Xplore, ScienceDirect, and Springer Link between 2001-2021. The data is tabulated for clear expression of knowledge gaps. Results: A total of 17 articles from 300 articles on smart city business models matched the search on smart city business models for local authorities . The study revealed that hardly any in-depth research providing the crucial elements for a successful smart city business model for local authorities has been conducted. No research has linked frugal innovation to smart city business models. Conclusions: The study calls upon the research community to explore further, the possible linkage between frugal innovation and smart cities for local authorities.

“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 UCTM—An Ambidextrous Service Innovation Framework—A Bottom-Up Approach to Combine Human- and Technology-Centered Service Design

Systems ◽  
2019 ◽  
Vol 7 (2) ◽  
pp. 23 ◽  
Author(s):  
Wolfgang Vorraber ◽  
Dietmar Neubacher ◽  
Birgit Moesl ◽  
Julia Brugger ◽  
Sigmar Stadlmeier ◽  
...  
Keyword(s):  
Business Model ◽  
Dynamic Capabilities ◽  
Business Models ◽  
New Technologies ◽  
Service Innovation ◽  
Service Design ◽  
Smart Devices ◽  
Success Factor ◽  
Use Case ◽  
Bottom Up

Digital innovation is a key success factor for business enterprises and organizations concerned with public safety. Increasingly shorter technology cycles produce a stream of highly promising gadgets and smart devices and this innovative provision opens a gap between what is currently in use for the value-creation processes of an organization and what could potentially be used. The presented framework provides guidance on how to implement dynamic capabilities needed for business model and service innovation within a complex socio-technical system. A way to combine technology and use-case sensing with the ultimate aim of creating innovative artifacts for organizations is presented. While Business Model Innovation (BMI) literature mainly focuses on a strategic top-down process, we propose a bottom-up process-driven approach to complement business frameworks. Based on these insights, new service artifacts can be designed and analyzed in a systemic way. The applied research methodology is based on the design science research concept. A qualitative approach with focus groups was used to gather user requirements and facilitate participatory and user-centered design of information systems. In this paper, we provide a framework that supports business executives as well as IT experts on how to cope with and integrate new technologies into organizations, their processes, and their business models. In addition to a comprehensive theoretical overview of the proposed framework, we also provide practical results, since this framework was applied in the course of a service design and engineering research project. A use case of alpine rescue missions serves as an example to demonstrate the practical application of the proposed framework.

scholarly journals Exploring Second Life Applications for Electric Vehicle Batteries

2020 ◽  
Author(s):  
Felix Vu ◽  
Melanie Rahic ◽  
Koteshwar Chirumalla
Keyword(s):  
Electric Vehicle ◽  
Business Model ◽  
Second Life ◽  
Value Chain ◽  
Quantitative Methods ◽  
Business Models ◽  
Success Factor ◽  
Research Approach ◽  
Qualitative And Quantitative Methods

The purpose of the study is to explore an economically viable second life applications for electric vehicles (EV) batteries. There is a common consensus in the automotive industry that the reuse of retired EV batteries—often referred as a second life of a battery—can provide greater economic and sustainability benefits. Although literature acknowledged potential business opportunities with batteries’ second life, there are still a lot of uncertainties, making success difficult to realize. In particular, identification of a profitable second life application with a right business model in the battery value chain has become a key success factor. Therefore, a case study, with a mixed research approach, considering both qualitative and quantitative methods, has been conducted in a company that is one of the leading manufacturers in the heavy-duty industrial vehicle industry, which currently is developing their electric vehicle machines with a li-ion battery pack. The study generated and analyzed several different second life concepts to find the most economically viable second life applications. The analysis concluded three second life business concepts in the initial phase. In the later phases, individual business model canvases and different reverse logistics processes were created, mapped, compared, and validated through quantitative analysis. The analysis show that out of three concepts remanufacturing application proved to be the most applicable one for the case company, within a range of 15 years’ time. The paper contributes to the theory of circular business models in the context of EV batteries.

Famoc Depanel: innovating product-service systems through functional spaces

2020 ◽  
Vol 10 (4) ◽  
pp. 1-24
Author(s):  
Mario Andres Manzi ◽  
Laura Blanco Murcia ◽  
Monica Ramos Mejia
Keyword(s):  
Business Model ◽  
Business Models ◽  
Chief Executive ◽  
Content Type ◽  
Environmental Care ◽  
Academic Level ◽  
Product Service ◽  
New Business ◽  
National Tax ◽  
Office Furniture

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.

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.

Lessons learned from a successful industrial product service system business model: emphasis on financial aspects

2018 ◽  
Vol 33 (3) ◽  
pp. 365-376 ◽  
Author(s):  
Maicon Gouvêa de Oliveira ◽  
Glauco Henrique de Sousa Mendes ◽  
Andrei Aparecido de Albuquerque ◽  
Henrique Rozenfeld
Keyword(s):  
Business Model ◽  
Business Models ◽  
Service System ◽  
Single Case ◽  
Lessons Learned ◽  
Theory And Practice ◽  
Product Service System ◽  
Content Type ◽  
Structure Information ◽  
Product Service

Purpose The purpose of this study is to identify the elements of the product-service system (PSS) business model of a Brazilian company that has been running it for almost 50 years. It describes the PSS business model and gives special attention to the financial aspects of PSS implementation and to contingent factors of this emerging country. Design/methodology/approach The research is based on a single case study. Data have been collected through interviews and document analysis. Results and implications are obtained using Canvas framework to structure information and comparison between theory and practice. Findings Results described in this paper show that the PSS design and implementation can be strongly influenced by financial and contingent factors. This case indicates that the implementation of PSS business models can follow diverse paths and configurations to fit with companies’ organizational features, local regulations and economic factors, including mixed transactional models and less demanding financial assessments. Originality/value This paper provides a roadmap of lessons learned from a multinational manufacturer that has been following the PSS business model for almost 50 years. This paper offers key insights concerning financial aspects and contingency factors that might influence servitization adoption.

scholarly journals AI Startup Business Models

2021 ◽  
Author(s):  
Michael Weber ◽  
Moritz Beutter ◽  
Jörg Weking ◽  
Markus Böhm ◽  
Helmut Krcmar
Keyword(s):  
Business Model ◽  
Business Models ◽  
Descriptive Analysis ◽  
Product Service ◽  
Key Characteristics ◽  
Long Time ◽  
Value Propositions ◽  
Entrepreneurial Action ◽  
The Impact ◽  
Rapid Emergence

AbstractWe currently observe the rapid emergence of startups that use Artificial Intelligence (AI) as part of their business model. While recent research suggests that AI startups employ novel or different business models, one could argue that AI technology has been used in business models for a long time already—questioning the novelty of those business models. Therefore, this study investigates how AI startup business models potentially differ from common IT-related business models. First, a business model taxonomy of AI startups is developed from a sample of 100 AI startups and four archetypal business model patterns are derived: AI-charged Product/Service Provider, AI Development Facilitator, Data Analytics Provider, and Deep Tech Researcher. Second, drawing on this descriptive analysis, three distinctive aspects of AI startup business models are discussed: (1) new value propositions through AI capabilities, (2) different roles of data for value creation, and (3) the impact of AI technology on the overall business logic. This study contributes to our fundamental understanding of AI startup business models by identifying their key characteristics, common instantiations, and distinctive aspects. Furthermore, this study proposes promising directions for future entrepreneurship research. For practice, the taxonomy and patterns serve as structured tools to support entrepreneurial action.

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