HMOs: Challenges & Opportunities: A Roundtable Presentation

Resources depletion, emerging competition, and increasing individual customer requirements are among the most common trends shaping nowadays manufacturing industry. Product-Service Systems (PSS) are put forth as a potential means for meeting these challenges due to their intrinsic characteristics such as dematerialization, multi-actor perspective, inimitable service know-how, and customer closeness. The scope of this paper falls under a wider topic relating to the development of PSS solutions for the steel sludge treatment sector. More specifically, the paper reports on a combined performance measurement and PSS design approach to support the decision making process on the PSS implementation. The approach takes into account the need for a collaborative effort among the PSS value network actors to successfully implement PSS offers. A case study from the sludge treatment sector is used to illustrate the synergies between performance measurement and decision making, in the PSS context.

While many models for sustainable product-service systems (PSS) integrate the multi-actor perspective, few provide insights on how the territory in which actors implement the system influences its sustainability. This paper explores the implementation of a territorial PSS at a city or regional scale as a means to structuring value networks and enhancing its sustainability potential. The research combines a multidisciplinary literature review with two exploratory sustainable PSS cases in packaging and cloth baby diapers. The paper proposes a framework explaining how sustainable PSS providers develop territorial networks that consider a diversity of actors from civil, industrial, and public spheres to mobilize resources for value creation at organizational, network, and territorial levels. It identifies contextual factors, such as proximity, social embeddedness of relations, and the visions that influence the consolidation and sustainability of the territorial PSS networks. The empirical cases show the development of territorial networks enhances embed social relations among actors and enables the sustainable PSS concept to adapt to locally articulated sustainability principles and priorities. The paper discusses the implications of this approach for PSS for sustainability managers and designers. The study fills a gap by showing the importance of integrating a diversity of territorial actors as a pre-condition for PSS to contribute to the sustainability transitions and resilience of territories. Future research may validate the proposed framework and focus on identifying opportunities and barriers for the territorial PSS approach in different contexts such as industries and company sizes.

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

Dynamic and multidimensional measurement of product-service system (PSS) sustainability: a triple bottom line (TBL)-based system dynamics approach

Survey on Product-Service System applications in the automotive industry

Manufacturers aim to design product-service systems (PSS) which integrate services with products to attain sustained competitive advantage from a life cycle perspective. PSS design should be customised solutions which are aligned to integrated stakeholders' capabilities, a subject which the extant literature has not sufficiently addressed. This paper proposes a systematic framework for the PSS solution provider to address this aim and operationalizes this through software developed for PSS design which models stakeholders' individual activities and simulates their occurrences depending on their relations. The framework stresses that integrated stakeholders' capabilities define continuing ability to generate a desired operational outcome for the customers. The paper reports a PSS design case for a laser system manufacturer and then applies the framework to it. The industrial experts' views on this framework reveal that it helps to develop PSS design from a holistic systems approach which facilitates a change in the designer's mindset from a product-centric to a systems-centric. The level of trust and transparency required for this framework is argued to be absent in most industrial sectors, being one of the foremost limitations for implementation of PSS.

Offering Product-Service Systems (PSS) becomes an established strategy for companies to increase the provided customer value and ensure their competitiveness. Designing PSS business models, however, remains a major challenge. One reason for this is the fact that PSS business models are characterized by a long-term nature. Decisions made in the development phase must take into account possible scenarios in the operational phase. Risks must already be anticipated in this phase and mitigated with appropriate measures. Another reason for the design phase being a major challenge is the size of the solution space for a possible business model. Developers are faced with a multitude of possible business models and have the challenge of selecting the best one. In this article, a simheuristic optimization approach is developed to test and evaluate PSS business models in the design phase in order to select the best business model configuration beforehand. For optimization, a proprietary evolutionary algorithm is developed and tested. The results validate the suitability of the approach for the design phase and the quality of the algorithm for achieving good results. This could even be transferred to already established PSS.

The implementation of Product-Service Systems (PSS) calls for the modification of existing business models. The goal of the paper is to work out an analysis and a classification of PSS design methods used in the development of new business models. Using a systematic review method, we identified 60 PSS design methods. Following the examination of the major business model templates, we selected the Business Canvas Model for further studies. Then, coding rules were adopted to specify what elements of the Business Model Canvas impacts individual PSS design methods and an analysis was performed. In the final stage, methods were broken down by Business Model Canvas domains. Various PSS design methods presented in the literature address different areas of Business Model Canvas. The available PPS methods can be classified into three main groups: Group 1—including infrastructure and offering; Group 2—including infrastructure, offering and customers; and Group 3—including infrastructure, offering, customers and finance. Very few methods consider areas such as Key Partners, Customer Segments, Cost Structure and Revenue Streams. Nevertheless, there is no PPS design method that would address all of Business Model Canvas building blocks. The paper discusses PSS design in business model context. Classification of PSS design methods was proposed together with new possibilities to develop business models based on this classification. The proposed approach illustrates the combination of PSS design methods applied in food processing and agricultural machines industry.

A service innovation model for synergistic community transformation: integrated application of systems theory and product-service systems

Circular Product-Service-System Ideation Canvas – A Framework for the Design of Circular Product-Service-System Ideas

A conceptual model to support sustainable Product-Service System implementation in the Brazilian agricultural machinery industry

A product–service system (PSS) is a concept concerning sustainability, as it offers the opportunity to decouple economic success from material consumption, thereby reducing the environmental impact of economic activities. However, researchers have identified significant barriers frequently impeding sustainability potential, which are called rebound effects. Unfortunately, the existing studies are insufficient, and there are few published studies on the actual avoidance of the rebound effect, which is a significant limitation for practical applications for decision-makers and policymakers. Therefore, this study aims to conduct a comprehensive bibliometric review of the relationship between the rebound effect and PSSs, including its drivers and mitigation strategies. This study incorporates multiple perspectives to map and analyze the landscape of rebound effect research in the context of PSSs and used 152 articles from a systematic literature review covering all publication years. Using the Scopus and Web of Science database, journals, citations, authors, and keywords were identified. This study identified the annual trend of research, listed the most influential articles, and uncovered six research topic clusters related to the rebound effect and PSSs. As an innovative feature of this study, it categorised the identified drivers based on their contextual dependencies to elucidate their interrelationships. This study also presents a categorisation of mitigation strategies based on the type of approach. This study is expected to support decision-makers and practitioners in developing sustainable PSS implementation strategies.

The paper proposes a Product-Service System (PSS) methodology for customizing solutions to different patterns of use while achieving a better environmental performance than a stand-alone product. The approach is based on combining the Quality Function Deployment for Product-Service Systems (QFDforPSS) and the Screening Life Cycle Modeling (SLCM) tools. QFDforPSS is augmented by the Fuzzy Analytical Hierarchy Process (FAHP) to reduce service-related ambiguities and uncertainties on the one hand and better define the product and service characteristics of the solution on the other. The SLCM evaluates the possible outcomes by determining the environmental impact and comparing it with the manufacturer’s current solution. A case study at a manufacturer of medical diagnostic equipment illustrates the use of the approach depicting the possible benefits that can arise: the PSS solution can be customized to fit customers who intensively use the product and consumers with a more moderate use. This offers flexibility and an optimized life cycle through easier maintenance, upgrades, and end-of-life schemes. Concretely, it shows how the PSS approach can enhance the development of sustainable solutions that can be adapted to varying and future customer needs, such as adjusting current solutions to new requirements, i.e., adapting existing products to COVID-19 detection and different levels of use.

Product-Service System (PSS) is proposed as an answer to the increasing need for providing sustainable solutions in nowadays competitive markets. To fulfil the advanced needs of customers, OEMs (Original Equipment Manufacturers) start collaborating with service and technology providers to develop a customised package of heterogeneous tangible and intangible components. Consequently, defining the interfaces is crucial to integrate these components into a unique system. Comparing to the product or service design, modeling interfaces in PSS is challenging because of the heterogeneity of its components, especially, when a tangible component is interacting with an intangible one. This paper aims at proposing a conceptual model supporting the definition and classification of interfaces in PSS architecture. Based on Systems Engineering (SE) recommendations, the model allows the definition of interfaces through the system definition from the functional to the physical architecture. The application of the model is illustrated by a pragmatic use case concerning the self-service and station-less bicycle sharing system.

Committed Business-to-Business (B2B) relationships are linked to sustainable business partnerships and greater profitability. As competition increases, suppliers must seek to differentiate by shifting the focus of their offerings from the product to services that contribute to create additional value to buyers. This empirical research proposes a product-service system (PSS) framework within the context of a relationship marketing (RM) model tested across a sample of United States (US) and Brazilian buyers. The study examines the impact of value-added benefits on building sustainable B2B partnerships. Results demonstrate that a firm’s servitization strategy that delivers both functional and social benefits fosters greater information exchange and mutual cooperation, which in turn contributes to increase buyer’s trust in, satisfaction with and commitment to a supplier. Despite some noted differences found in the commitment-building process, results show the importance that additional services have on promoting long-term, sustainable B2B partnerships across countries in distinct stages of economic development.