Product Service System

Eco-efficient Product-Service System (PSS) innovations represent a promising approach to sustainability. However the adoption of such business strategies is still very limited because it often involves significant corporate, cultural and regulatory barriers. An important challenge is not only to conceive eco-efficient PSS concepts, but also to understand the contextual conditions that facilitate their societal embedding, and which strategies and development pathways are the most appropriate.
The combination of theoretical insights from innovation studies (in particular Strategic Niche Management and Transition Management) and a case studies research (exploring the innovation journeys made by six companies in introducing their eco-efficient PSS innovations in the market) is used to investigate the factors that influence the implementation and diffusion of this kind of innovations. The article provides a structured overview of these factors, grouping them in four clusters: implementation of socio-technical experiments; establishment of a broad network of actors; building up of a shared project vision; creation of room for broad and reflexive learning processes.
Based on these results it is argued that a broader and more strategic system approach should be adopted by companies. Companies should focus not only on the PSS solution and its value chain, but also on the contextual conditions that may favour or hinder the societal embedding of the PSS itself. The article concludes by outlining a key area for future research.

Recent studies advocate that digital technologies are key enabling factors for the introduction of servitized business models. At the same time, these technologies support the implementation of the circular economy (CE) paradigm into businesses. Despite this general agreement, the literature still overlooks how digital technologies enable such a CE transition. To fill the gap, this paper develops a conceptual framework, based on the literature and a case study of a company implementing a usage-focused servitized business model in the household appliance industry. This study focuses on the Internet of Things (IoT), Big Data, and analytics, and identifies eight specific functionalities enabled by such technologies (improving product design, attracting target customers, monitoring and tracking product activity, providing technical support, providing preventive and predictive maintenance, optimizing the product usage, upgrading the product, enhancing renovation and end-of-life activities). By investigating how these functionalities affect three CE value drivers (increasing resource efficiency, extending lifespan, and closing the loop), the conceptual framework developed in this paper advances knowledge about the role of digital technologies as an enabler of the CE within usage-focused business models. Finally, this study shows how digital technologies help overcome the drawback of usage-focused business models for the adoption of CE pointed out by previous literature.

In recent times, globalization has brought us not only new opportunities but also new challenges. The theme of innovation has become a mandatory topic for all industries—it has become a focal point for the enterprise, society, and the world. The goal of innovation is to create business value by developing worthwhile ideas into a customer-centric marketable reality. This, for most

The global transition towards service orientation is posing challenges in cost estimation for manufacturers driven by the uncertainties that arise at the bidding stage of long-lasting performance-based contracts (i.e. availability). Service uncertainty is driven by the quality of information flow and knowledge across a given service network; however, it commonly suffers from the unavailability of useful data to assist cost predictions. Currently, consideration of cost uncertainty for an industrial product–service system is lacking in literature. To fill this gap, this paper combines literature in service and uncertainty in cost estimation to propose the components of a service delivery system, classification of sources of uncertainty based on supply and demand and the suitable uncertainty modelling methods for service cost estimation. The paper categorises service uncertainties in a demand and supply approach, whilst also allocating the types of uncertainty into aleatory and epistemic to propose suitable uncertainty modelling approaches. For future research, various areas such as consideration of a holistic approach to account for service uncertainties and development of a framework to support inter-linkages across a service network are proposed.

New practices linked to biological sciences are emerging in the world of design and architecture. In recent years various interventions have involved the use of living organisms and biomaterials even in an urban context. This essay analyzes those projects that have entailed the use of microalgae, tracing their limits and possibilities. The guidelines for the implementation of similar projects at the level of products or small installations are also defined. From the perspective of designing for the benefit of citizens and given the countless properties of microalgae, solutions of this kind and innovative integrated services could be a way to mitigate the environmental, but also social and economic problems, of present and future cities.

Purpose – The purpose of the work presented in this paper is to capture the current state of Six Sigma as well as to document the current practices of Six Sigma through a systematic literature review so as to extend and update the previous work of Brady and Allen. Design/methodology/approach – The approach to this paper is to answer the

To secure a competitive advantage in economies of fierce rivalry, manufacturing firms seek strategies to grow quicker than the competitors. Differentiation and financial growth are objectives all manufacturing firms try to attain. An increasingly popular strategy for this cause is servitization. Servitization refers to integration of services to product offering in order to add value, generate larger profits or differentiate from the competitors. However, there is lack of evidence to understand this strategy from the perspective of Indian manufacturing firms. The study aims to address this gap in academic literature by discussing the factors influencing the decision to choose servitization as a strategy and explain its impacts on the firm performance.
The study introduces the concept of servitization by addressing the existing literature on servitization and closely related concepts. The literature guides the structure into explaining the objectives and methodology. Main body of the study will analyse the results of data collection and discuss the findings in detail. The project concludes with findings explaining the implications of research for management officials by highlighting the way Indian economy and market is tackled by servitization and what can be expected from this strategy by manufacturing firms in India.
The study confirms conceptual similarities between the manufacturing firms of the emerging economy of India and manufacturers from western economies of UK and USA. However, substantial differences are reported in terms of motivations, challenges and impacts of servitization from the manufacturer’s perspective. Evidence of varying levels of services being integrated in product offerings, is reported with outcomes of conditions not completely suitable for servitization of some industries.

This paper presents an emergent systemic context in a current research project in which the authors are engaged. The research investigates the design of service-systems that facilitate the evolution of garments through multiple-use lives made possible with the strategic integration of textile decoration, built up in complexity over time, such as digital printing, over-dyeing and embroidery. The projects asks: What if a shirt were designed from the beginning as an integral part of a fashion service system? What if the design of both the product and the system enabled the object's aesthetic to evolve over time? The authors propose a system for iterative surface decoration of garments over time, as an alternative to purchasing additional garments to satisfy desire. Design for partial disassembly is a key aspect of this service-system. The authors argue that a rethinking of the current economic and business systems is required for such a service-system to flourish. Findings from the...

Product Service Systems (PSS) with the same purpose may be implemented differently across societies. Due to societies having different socio-cultural issues, social norms, and laws, public systems have evolved in specific ways for different societies. One of the factors for making such differences is social trust. This thesis stresses on how a PSS can be an innovative social value creating solution through social trust, while also suggesting social trust level as a parameter for the PSS design. The case study focuses on public transportation systems in Seoul and other cities. A PSS design for a flight luggage weight management is proposed for demonstrating how an appropriate PSS within a social context can be designed. By factoring in a broader social context, the PSS can be more effective for solving societal problems and creating social value. The conclusion emphasizes the importance of designing a PSS within a social context to solve societal issues and to create social value by using a mixed strategy of punishment and reinforcement behaviours. Finally, the PSS may encourage people to build more social value together and choose an ideal system for society.
Society is ever changing and dynamically evolving. Many PSS’s have to be equipped to face conflicts within a social context. Therefore, designing a PSS within a social context is a difficult problem. To design a PSS, designers need to make an assumption in regards to social trust and whether users will behave as expected or not. Therefore, the designer needs to consider the normal usage and typical abuse of the system by stakeholders in order to design a successful PSS.
To find cases of similar PSS’s, this thesis takes examples from public metro transportation systems that have different social trust levels. There are generally no big differences

between metro transportation systems, although cities often choose different PSS styles. Initially, Seoul, Hong Kong, and L.A. chose advanced ICT (information and communication technologies) for the metro transportation system, which included automatic ticketing, check-in terminals, fare gates, transfer control, and electric surveillance systems. These were developed based on lesser trust levels. These systems provide high transparency for the system. Primarily, surveillance systems are designed against fare-dodging passengers, accidents, and terror threats. Meanwhile, honour-based systems of metro transportation are also working in Berlin and Ulm/Neu Ulm. It is based on high trust level among citizens and the operating entity. It can be vulnerable to fare evasions. However, passengers can enjoy convenient travel without the hassles of checking-in or out. Medium trust level systems can be found in the metro transportation systems of Helsinki, Espoo, and Vantaa.
From the case study, the risk/cost scenario for a PSS is analysed. If there were lesser social trust in a society, it would be a rational decision to invest more in security maintenance systems to offset the risk. If there is high social trust in a society, it can be maintained by a system with smaller investments on the security maintenance system, or by investing in more human inspectors. Meanwhile, not enough investment on security maintenance systems for a PSS may cause serious stakeholders’ conflicts in implementation and operation. But the research finds that even choosing defection may be a dominant strategy for passengers, majority of citizen follow social norm and law. This suggests that positive and negative punishments are working and keep the system running efficiently.
Based on the findings, this thesis proposes a PSS design for a flight luggage weight management system with social trust level as a design parameter. The thesis review stakeholder analysis, expert interviews, passenger surveys, and the as-is system analysis, which analyse the current system as a reference, social demands for pollution reduction, business needs for cost reduction, passengers’ pain points, and conflicts among stakeholders. From the review, two design goals are identified initially. The first is, ‘Identify a way to estimate a passenger’s travel weight before a flight’. The PSS may induce cost/pollution reduction by better flight planning and operation. The second is, ‘Identify a way to reduce a passenger’s actual travel weight’. Reduced weight can curtail fuel costs, fuel reserves, pollution, and carbon footprint.
For these goals, design concepts are explored with different social trust levels as a design parameter. By integrating service-element design and product-element design, the designer may explore new and innovative opportunities of creating social value. As iteration goes, a PSS design can find ideas for increasing positive behaviours and decreasing negative behaviours. Iteration of the concepting, design development, and validation steps will yield acceptable solutions that meet stakeholders’ requirements and create social value. Eventually, it will be able to resolve social conflicts and satisfies stakeholders with new social value from the proposed PSS.
In this thesis, three approaches are chosen for building PSS concepts during the first iterative cycle. The auto-weigh gate (AWG) systems, the self-service kiosk (SSK) systems, and the self-service web (SSW) systems are designed as alternatives. In terms of user experience and social value propositions, the as-is system and other alternatives are compared and discussed. Models are evaluated by PC simulation, user interviews, and user surveys. From PC simulations, finding operational boundaries to control behaviours by positive/negative punishment is also discussed. Because of implement cost and scalability, the self-service web system seems most ideal system for airlines. Otherwise, the first, user survey shows that airlines should be clear about their privacy protection policies and practice. It is important to display the benefits clearly, if they are providing personal information to airlines for any alternatives. The second, providing an easy interface is required. Not all passengers prefer the self-service check-in or web-based services. The auto-weigh gate system is most preferred system by the survey respondents. This suggests a conflict between passengers and airlines.
From these finding, goals are reframed as ‘Encourage mutual social trust among stakeholders and utility for all by employing clear communication through sharing benefits and operant conditioning strategies.’ and ‘Drive the PSS to satisfy stakeholders with better social values (cost saving, eco-friendliness, social acceptance, emotional quality, convenience)’.
In the third design round, to resolve conflicts, the positive/negative reinforcement strategy is considered along with the punishment strategy. To motivate passengers, ideas such as an allowance sharing system, award system, donation system, and clearer communication about the benefits are proposed during the new iteration build process. Otherwise to decrease negative behaviours, a random inspection element is added to the system to monitor social trust level and decrease defective behaviours.
The purpose of this research is not to suggest a PSS with high social trust level for every society. The high social trust PSS cannot be a panacea. Instead, user-centred design principles and social norms in a society should be respected and pursued. One good PSS design for a society cannot always be a good solution for another society. It is the PSS designer’s responsibility to find the globally optimal solution for a society within their social context. However, driving a PSS system towards a more ideal state is also the designer’s responsibility. As a social PSS design solution, not only should it be able to resolve conflicts, but should also create new types of behaviours that will help the system create social value that had not previously existed. Eventually, it will not only help maintain the PSS in good

condition but also increase social value in society. In conclusion, this thesis suggests that the PSS designers should endeavour to find a way to drive the system for a better tomorrow.

The Product-Service System (PSS) concept represents, theoretically and practically, a promising model to steer our production and consumption systems towards sustainability. PSSs are business models based on selling performance (i.e. results) rather than products. They can provide a range of economic and competitive advantages and, if properly designed, can support the dematerialisation of economy and hence provide environmental benefits.
However, it must be stressed that the uptake of this business concept by companies is still very limited. The key problem is that sustainable PSSs can be considered radical innovations. They may require a profound redefinition of the production and consumption modalities and hence their implementation may cope with the current and dominant socio-technical systems. In other words they may challenge existing customer habits, organisational structures and regulative frameworks. For this reason the introduction and scaling-up of such innovations are not completely under the control of a company (or a small network of actors), because changes in the factors that form the boundary conditions (i.e. existing organisations, institutions and networks that share dominant practices, rules and interests), are also required.
Although the concept of sustainable PSS has been discussed in the literature for over a decade, not much attention has been devoted to understand how the process of introduction and scaling-up takes place and how it can be managed and oriented. There is therefore a knowledge gap regarding the mechanism and factors driving the implementation and diffusion of this kind of innovations and, consequently, there is a lack of strategies, approaches and tools to enable project managers, management consultants and strategic designers in designing and managing this process. The research presented in this book aims at tackling these issues and in particular at answering the following questions: How sustainable Product-Service System can be introduced and scaled-up? How this transition process can be designed, managed and oriented?
The book seeks to answer these challenges by integrating concepts and insights from two research streams: one on Product-Service System (PSS) design and the other on transition studies. In particular the book, through industrial case studies and an action research project, explores and delineates the role of strategic design in supporting the introduction and scaling-up of sustainable PSS innovations.
A new strategic design role thus emerges, a role in which the ideation and development of sustainable PSS concepts is coupled with the designing of appropriate transition paths to gradually incubate, introduce and diffuse these innovations. A key role in these transition paths is given to the implementation of socio-technical experiments: protected spaces where radical innovations can be tested, become more mature, and potentially challenge and change dominant socio-technical practices, habits and institutions. The book contributes to clarify how these socio-technical experiments can act as incubators where PSS innovation can start, proliferate and develop. In particular the book focuses on the role of experiments as Labs (to test, learn and improve the PSS innovation on multiple dimensions and involving a multiplicity of actors), Windows (to raise interest on the innovation project and the related actors, disseminate results, build-up synergies with existing similar projects/initiatives, and attract and enrol new actors), and Agents of change (to influence contextual conditions in order to favour and hasten the societal embedding process).

"Product development involves a set of complex problem-solving activities. Their effectiveness depends on how well companies share learnings from one problem-solving experience to another. “Lessons learned (LL) practices” are common knowledge management efforts through which companies attempt to foster experience-based learning environments within them. However, many companies fall short in utilizing LL at an action level, i.e. in capturing and sharing learned lessons, and applying them in new situations is still difficult.

This thesis is largely based upon qualitative data collected in three case studies that had two main objectives. Firstly, to investigate the current state of LL practice in order to identify potential barriers in the light of emerging product development trends. Secondly, to identify ways to improve current practices from both capture and reuse perspectives.

The research work identifies 11 functional requirements for improving LL processes based on the outlined potential barriers in as-is practice. The studies showed that effective LL practice requires a continuous approach with a standard format that should be applicable not only to capture lessons from design projects, but also from manufacturing, use, and maintenance phases, where much of the learning is still tacit in nature and difficult to articulate. From a reuse perspective, current project-specific lessons lack contextual knowledge related to learning—that is, the lessons’ background, root-causes, and applicability—thereby demanding a method to capture LL at a process-based level with a richer context.

Based on this analysis, a methodology has been developed for representing LL in a standardized format together with guidelines, using videos and storytelling as enabling media. This methodology includes a seven-step representation of LL, consisting of: (1) lessons learned statement, (2) working context, (3) task description, (4) “what went wrong” or “what went well”, (5) lessons learned, (6) lessons learned measures, and (7) applicability and delimitations.

Preliminary validation activities revealed that the methodology facilitates the preparation and formulation of concise LL with richer context than traditional text-based formats. The methodology has proved to be beneficial in capturing lessons from skill-oriented activities in a narrative form, by visually displaying defects, problems or improvements in complex products and associated actions in production or maintenance phases, for instance. Thus, a video-based LL captures a single learning point with more specific details and actionable recommendations than traditional project-specific text-based approaches, thereby enabling process-based learning. Moreover, the reuse of video-based LL was found to facilitate the execution of new design tasks by increasing users’ contextual awareness, thus enabling them to select possible solutions and apply them in new design situations relatively quickly. The methodology has potential advantages in leveraging experience-based knowledge and learning in early product development phases to avoid reinventing the wheel, and repeating potentially costly mistakes in all relevant company environments."

La integración entre la teoría C – K y el diseño de un Sistema Producto – Servicio (PSS) tiene un enorme potencial de incrementar la productividad en las empresas. Por un lado, la teoría C – K es un enfoque que permite producir un soporte adecuado para guiar el proceso de razonamiento durante el diseño de productos y servicios con la característica principal de haber sido validada con éxito para el desarrollo efectivo de estos.
Y por otro lado el Sistema Producto – Servicio (PSS) es un nuevo modelo de negocios que abarca el conjunto comercializable de productos y servicios capaces de satisfacer de manera conjunta los requerimientos de un cliente.

Companies are seeking for new ways to do business. The Product-Service System concept can be a potential option since it meets requirements regarding sustainability and also introduces a type of business in which the focus is placed on delivering function instead of providing value thought tangible products. However, the deployment of PSS involves a reassessment of companies’ business models. Therefore, this paper identifies and classifies the characteristics of the PSS business model that need to be addressed for its implementation, which was carried out using literature review and considering three types of PSS and nine elements of a business model.

The circular economy is a model of production and consumption to address the relentless depletion of resources and the accumulation of waste. In the circular economy literature, there are sparse suggestions that Product-Service Systems (PSSs) have the potential to produce closed-loop resource flows. This study explored this potential using a systematic literature review focused on the use phase and obsolescence. We identified twenty-one PSS elements that contribute to closed loops and categorised them by six architectural levels, i.e. services, resources, stakeholders, contract, value delivery, and systems and tools. We then structured the PSS elements and their contributions to closed loops under four subfunctions and consolidated them in a novel framework. Intercepting and transitioning obsolete resources are subfunctions demanded by a PSS to achieve an operational solution. Stating and governing resource lifetime are subfunctions wanted by a PSS to improve the solution. The results call for a functional approach to PSS design and consideration of obsolescence of products, components and materials. The implications of the results are that PSS elements contribute to achieving circularity by satisfying specific subfunctions and the data in the framework provide a basis for selecting suitable PSS elements.

Eco-efficient Product-Service System (PSS) innovations represent a promising approach to sustainability. However the application of this concept is still very limited because eco-efficient PSS are intrinsically radical innovations, that challenge existing customers’ habits (cultural barriers), companies’ organizations (corporate barriers) and regulative framework (regulative barriers). Because of these multi-dimensional changes, eco-efficient PSS can be considered complex and highly uncertain innovations, and therefore difficult to be predicted, planned and managed. Therefore the challenge is not only to conceive eco-efficient PSS concepts, but also to understand which are the most effective strategies to introduce and diffuse these concepts in the market.
Bringing together insights from innovation sciences (in particular transition management, strategic niche management and radical innovation studies), the paper puts forward an approach through which effectively manage the implementation and diffusion of eco-efficient PSS innovations.
Starting from these results the paper outlines the implications on the design level. A new different role for design emerges. A role that may potentially opens new fields of activity alongside the consolidated ones. A role in which design is not only aimed at defining sustainable PSS concept but it is also aimed at promoting, facilitating and setting- up the conditions for implementing and diffusing this kind of innovations.

The continuous development of the sharing economy calls for the attention of the design community. Practical knowledge of where, how and what roles designers could play, in developing the phenomenon out of its infancy into a full-grown alternative way of consuming and living with social and ecological benefits, remains absent. This article reports upon an exploration to match product-service system design with the sharing economy. A literature study was needed toward understanding the sharing economy from a designer’s point of view. A link was formed by focusing on different kinds of stakeholders. The result is a framework of five operable levels concerning PSS. One level concerns the product- service characteristics (0), while the other four concern levels of stakeholders mapped according to their involvement with the product-service. These four levels are the users (1), the ecosystem (2), the organization (3) and society (4). The framework results in an overview of workable parameters and leverage points: an attempt to support designers in understanding and designing PSS in a sharing economy context.

The role and focus of the industrial designer has changed and broadened over the time. A next design practice with growing attention from the design community is the design of Product-Service Systems (PSS). Within this paper we will discuss what the motivations are for the different stakeholders to
move from Product Design to Product Service System (PSS) Design, what makes designing a PSS different than designing a product, what the are the challenges for designers in developing PSSs and which roles the designers can play in this complex innovation process. These topics will be discussed based upon the outcomes of a range of recent research related to PSS and the Design Profession, which have been carried
by or in collaboration of our Faculty of Industrial Design Engineering. This in order to better
understand better the role of Industrial Designers in the development of PSS as well as how future designers can be better prepared and equipped for this role (i.e. by embedding PSS in Design Curricula).