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Product-Service System and Business Modelling
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Product-Service System and Business Modelling

A special issue of Sustainability (ISSN 2071-1050). This special issue belongs to the section "Economic and Business Aspects of Sustainability".

Deadline for manuscript submissions: closed (31 January 2022) | Viewed by 11900

Special Issue Editor

Prof. Jihwan Lee

E-Mail Website
Guest Editor
Department of Systems Management and Engineering, Pukyong National University, Pusan 608–739, Korea
Interests: Environmental Science Medicine Energy Agricultural and Biological Sciences

Special Issue Information

Dear colleagues,

Reduced profit rates due to fierce competition and rapid changes in customer expectations have forced manufacturing companies to shift from the sales of physical products to the sales of functionality delivered by the integration of the product and related services. This novel concept is referred to as a product–service system (PSS). Through the provision of integrated service along with the product life-cycle, PSS can enhance long-term profit by increasing the interaction between customer and companies. PSS can also achieve an improved utilization and reduced environmental impact by accessing customer usage data, and providing customized service for each customer.

In order to successfully shift towards PSS, companies need to redesign not only their product/service offering but also its business model. Business model is defined as a logical description of how a company will generate revenue and make a profit with its product and service. Planning of business model involves planning of its revenue model, distribution channel, or customer segmentation and its partnership, etc. Even with same product/service offering, a company can select from different categories of business models based on the company’s strategic direction. This explains why certain companies are more successful with PSS, whereas others fail despite adopting a similar PSS strategy.

Despite its importance, the PSS business model has been a neglected research area. Contemporary PSS research focuses too much on individual case studies, and relatively little attention has been paid to support methodologies or frameworks that support planning, operations, and implementation of the PSS business model.

The aim of this Special Issue is to explore methodologies, applications, and frameworks that can be incorporated into the planning, implementation, and management of the PSS business model. This Special Issue invites researchers in industrial engineering, service science, operations management, technology management, service design, and other disciplines and cross-disciplinary fields. Relevant topics include but are not limited to the following areas:

- Business modeling methodology for PSS

- Archetypes of PSS business models

- PSS business ecosystem/value networks

- Decision support system/tools for PSS business model implementation

- Economic value assessment of the PSS business model

- Value assessment of the PSS business model

- PSS business models for a circular economy

- Servitization trend analysis of manufacturing

- Emerging PSS business models using AI/business analytics

- Service design for the PSS business model

- Literature reviews or trends mining on the PSS business model

- Operations management for the PSS business model

Prof. Jihwan Lee
Guest Editor

Manuscript Submission Information

Manuscripts should be submitted online at www.mdpi.com by registering and logging in to this website. Once you are registered, click here to go to the submission form. Manuscripts can be submitted until the deadline. All submissions that pass pre-check are peer-reviewed. Accepted papers will be published continuously in the journal (as soon as accepted) and will be listed together on the special issue website. Research articles, review articles as well as short communications are invited. For planned papers, a title and short abstract (about 100 words) can be sent to the Editorial Office for announcement on this website.

Submitted manuscripts should not have been published previously, nor be under consideration for publication elsewhere (except conference proceedings papers). All manuscripts are thoroughly refereed through a single-blind peer-review process. A guide for authors and other relevant information for submission of manuscripts is available on the Instructions for Authors page. Sustainability is an international peer-reviewed open access semimonthly journal published by MDPI.

Please visit the Instructions for Authors page before submitting a manuscript. The Article Processing Charge (APC) for publication in this open access journal is 2400 CHF (Swiss Francs). Submitted papers should be well formatted and use good English. Authors may use MDPI's English editing service prior to publication or during author revisions.

Keywords

  • Business modeling methodology for PSS
  • Archetypes of PSS business models
  • PSS business
  • ecosystem/value networks
  • Decision support system/tools for PSS business model implementation
  • Economic value assessment of the PSS business model
  • Value assessment of the PSS business model
  • PSS business models for a circular economy
  • Servitization trend analysis of manufacturing
  • Emerging PSS business models using AI/business analytics
  • Service design for the PSS business model
  • Literature reviews or trends mining on the PSS business model
  • Operations management for the PSS business model

Published Papers (3 papers)

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Research

17 pages, 694 KiB  
Article
Digital Product-Service Systems: The Role of Data in the Transition to Servitization Business Models
by David J. Langley
Sustainability 2022, 14(3), 1303; https://doi.org/10.3390/su14031303 - 24 Jan 2022
Cited by 33 | Viewed by 5632
Abstract
The Circular Economy, as a guiding model for business processes, is attracting interest due to its potential for aligning business and societal goals as it offers companies the opportunity to simultaneously focus on economic value creation and on the mitigation of environmental damage. [...] Read more.
The Circular Economy, as a guiding model for business processes, is attracting interest due to its potential for aligning business and societal goals as it offers companies the opportunity to simultaneously focus on economic value creation and on the mitigation of environmental damage. It is becoming increasingly clear that digital technologies are an essential component of this model as they enable transparency and efficiency in closing material and energy cycles. Additionally, digitalization leads to efficient business models that revolve around adapting the value proposition to the insights gained from the continual analysis of data, shifting the emphasis of Product-Service Systems towards the service end of the spectrum. As such, these new business models are categorized as forms of Servitization. Despite the increasing importance of Servitization and digitalizing business processes, such as the move towards what is referred to as Industry 4.0 in the manufacturing industry, the associated transition towards widespread adoption of the principles of the Circular Economy is slow. This explorative study investigates key themes and challenges in transitioning towards digitally-enabled Servitization in the manufacturing industry and the relationship with the Circular Economy. Through interviews with experts from the realms of digital technology, Industry 4.0, and business sustainability, a set of research questions is developed that forms a research agenda. Full article
(This article belongs to the Special Issue Product-Service System and Business Modelling)
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14 pages, 732 KiB  
Article
A Global PSS Framework for Sustainable B2B Partnership
by Sandra S. Graça
Sustainability 2021, 13(6), 3066; https://doi.org/10.3390/su13063066 - 11 Mar 2021
Cited by 2 | Viewed by 2494
Abstract
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 [...] Read more.
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. Full article
(This article belongs to the Special Issue Product-Service System and Business Modelling)
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22 pages, 1801 KiB  
Article
Strategic Development of Product-Service Systems (PSS) through Archetype Assessment
by Trine Brink Frederiksen, Marina P. P. Pieroni, Daniela C. A. Pigosso and Tim C. McAloone
Sustainability 2021, 13(5), 2592; https://doi.org/10.3390/su13052592 - 1 Mar 2021
Cited by 8 | Viewed by 3130
Abstract
Product-service systems (PSS) enable product-oriented manufacturing companies to differentiate their offerings and become more competitive, while creating more value for customers along with improved economic performance and, in some cases, reduced environmental impact. However, PSS development remains difficult for manufacturing companies due to [...] Read more.
Product-service systems (PSS) enable product-oriented manufacturing companies to differentiate their offerings and become more competitive, while creating more value for customers along with improved economic performance and, in some cases, reduced environmental impact. However, PSS development remains difficult for manufacturing companies due to limited prior knowledge about PSS and the strategic characteristics it entails. To guide the PSS development process, this paper presents a prescriptive approach composed of a tool and a method based on the use of PSS archetypes in the initial development stages of new PSS business models (BM). The proposed tool builds upon three PSS archetypes, combined with 10 factors for assessment of the best suiting archetype. The proposed method and supporting tool guide companies in five steps, from the beginning of a servitisation process to the initial PSS development. Based on an evaluation with a Danish manufacturing company, an improved version of the method and tool was developed and applied with 60 students specialised in PSS development. Results from the evaluation indicate that the method and tool support scoping new PSS BM through the selection and modification of a PSS archetype, encouraging servitisation and PSS development in companies with different levels of PSS experience. Full article
(This article belongs to the Special Issue Product-Service System and Business Modelling)
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