Product Service System

"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."

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).

Sustainability requires radical innovations, but their introduction and diffusion usually encounter the opposition of existing socio-technical regimes. An important challenge is, therefore, to understand how to catalyse and support the process of transitioning towards these innovations. Building upon insights from transition studies (in particular the concepts of Strategic Niche Management and Transition Management), and through an action research project (aimed at designing, introducing and diffusing a sustainable mobility system in the suburban areas of Cape Town), the paper investigates the role of design in triggering and orienting societal transformations. A key role is given to the implementation of socio-technical experiments. A new socio-technical system design role emerges: a role in which the ideation and development of sustainable innovation concepts is coupled with the designing of appropriate transition paths to gradually incubate, introduce and diffuse these concepts.

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.

Sustainable Product-Service Systems (S.PSS) carry great potential to deliver social well-being and economic prosperity while operating within the limits of our planet. They can however be complex to design, test, implement and bring to the mainstream. To increase our understanding of the potential benefits, drivers and barriers in S.PSS design, the research community has been inspired to collect and analyse an extensive number of cases in diverse sectors and to develop and test several design methods and tools. This Special Volume on “New Design Challenges to Widely Implement ‘Sustainable Product-Service Systems’” presents results of key studies in the following areas: user satisfaction and acceptance of S.PSS solutions, how industrial partnerships and stakeholder interactions can be designed for environmental and socio-ethical benefits, how knowledge of socio-technical change and transition management feeds S.PSS design processes, and the role of policy instruments to foster their implementation and scale-up. This Introduction reviews the current state of research and summarises the articles presented. The articles demonstrate increasing confidence in integrating approaches and theoretical frameworks from other arenas. These approaches include sociological practice theory, to shed new light on consumer practices in S.PSS configurations, and strategic niche management, to foster a suitable design and experimentation milieu. Experimentation, iteration and cyclical design processes were also seen by many authors as crucial to implementing and stabilising S.PSS solutions, but also their continuous sustainability evaluation. Several articles highlight the importance of local authorities, in developing S.PSS-enabling policies as well as supporting novel networks of stakeholders in the co-production of value. Finally this Introduction highlights key issues for a design research agenda, including but not limited to the development of new knowledge to support S.PSS designers (such as S.PSS design in low and middle-income contexts) and the role of Higher Educational Institutions (HEIs) in the diffusion of knowledge and know-how to companies. Together, the papers in this special volume provide insight into the promise of the S.PSS concept for understanding, advancing and accelerating sustainability.

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.

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.

This paper reports evidence from a survey, aimed at testing whether and how Information and Communication Technologies (ICTs), which enable the adoption of product-service systems, can contribute to value creation. This analysis builds on previous contributions, according to which companies that are enriching their product offering through value-added services (the so-called servitisation strategy) often report lower levels of profitability, owing to the poor performance of their operating process. A wide stream of research claims that companies that invest in ICTs can enjoy valuable outcomes, since the adoption of such technologies results in processes that are more efficient and more responsive. Our hypothesis concerns the possibility of leveraging ICTs at operating process level so as to pursue a servitisation strategy. The in-field analysis presented in this paper concerns a sample of 109 companies located in Italy; data collected through the survey have been analysed using the structural equation modelling approach. The evidence presented demonstrates that ICTs can have a relevant impact on value creation because they lead to superior responsiveness of operating processes and to sound improvements in the product offering. In particular, companies that are able to embed such superior responsiveness into their product offering can further boost value creation.

Abstract— Product-Service Systems (PSS) are new business strategies moving and extending the product value towards its functional usage and related required services. From a theoretical point of view the PSS concept is known since a decade and many Authors reported ...

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).

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.

Although the existing literature indicates that the business model concept can be useful to implement product–service systems (PSS), there is still a paucity of guidelines to assist companies in this respect. Therefore, this paper proposes a framework to support the adoption of PSS employing the business model concept. This framework was developed based on literature review and intends to guide the company on the analysis of their business context, on the choice of the appropriate type of PSS and on the definition of their PSS characteristics. A single case study was then performed to illustrate an application of the framework in a machine tool manufacturer and provide research insights. Overall, results indicate that the framework can provide companies with a useful reference to PSS implementation, helping on the investigation of different PSS scenarios as well as the main barriers and challenges to be overcome.

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.

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.