Creation of product-service systems (PSS) proposals in the fuzzy front-end

Abstract

Product-service systems (PSS), defined as a system of products, services, infrastructure, and networks that aims to satisfy customer needs, support business innovation and has the potential to lead to improved environmental performance. The adoption of PSS requires modifications in the business model of companies or even the creation of new ones. The decision to modify or create business models occurs in the fuzzy front-end through the development of proposals. In this sense, the creation of PSS proposals might assist the adoption of PSS business models in enterprises. However, companies still need support to adopt PSS business models due to three main reasons. First, most of the studies about PSS business models mention its importance but do not explore which content should compose such models. Second, PSS business models are explored considering a partial view of business model dimensions. Finally, there is a lack of methods and tools that support the adoption of PSS business models in the fuzzy front-end. Thereby, the aim of this study is to develop a method, named Configurator of PSS Proposals, to cope with these challenges and assist the creation of PSS proposals for current or new business models. By means of systematic literature review, consulting with experts and an explorative case study, the method was developed. It is composed by eight steps and each step addresses a business model dimension, e.g. value proposition. The steps encompass a range of tasks that must be performed in order to create a PSS proposal. To support carrying out the tasks, a help element is available. This help contains additional information to support the utilization of the method, such as: examples of companies that adopted PSS and hints of practices, methods and tools. To evaluate the method, it was applied through a case study in the context of a research project. The aim was to create a PSS proposal for a bicycle concept and verify whether the method reach its purpose, i.e. is able to support the creation of a PSS proposal. Final considerations include contributions and limitations of this study. An example of contribution of the method is provision of a shared knowledge about PSS between different areas of expertise. As limitation, the lack of application of the method in a real case is highlighted. Additionally, future research is addressed based mainly on the insights gathered in the second case study, e.g. the inclusion of new tasks and relations between them.Keywords: Product-service system; fuzzy front-end; proposal; business model. Sistema produto-serviço (SPS), definido como um sistema de produtos e serviços, infraestrutura e networks e que visa aumentar a satisfação de clientes, auxilia na inovação nos negócios e tem o potencial de levar à melhoria de desempenho ambiental. A adoção de SPS requer a criação ou modificação dos modelos de negócios das empresas. A decisão de criar ou modificar um modelo de negócio ocorre no fuzzy front-end por meio da criação de propostas. Desta forma, acredita-se que criação de propost...

Business process support for IoT based product-service systems (PSS)

“…The Configurator aims at supporting companies to create their PSS positioning during the innovation planning. The Configurator comprises steps that should be followed by companies aiming at improving a current business through PSS or starting a new business by creating a PSS proposal (Barquet, 2015). According to the previous author, the PSS Configurator application consists of eight steps: first, understanding company business model (decision making to maintain the current business model or creating a new business for PSS); second, chosing value proposition (deciding which mix of products and services to offer customers); third, identifying customer target (gathering market data to understand current or potential customer attracted by the PSS proposal); fourth, characterizing customer relationship (developing alternatives to relate with customers considering different phases of a PSS lifecycle); fifth, putting together processes and partnerships (identifying and defining PSS processes and activities of the actors, and ways in which PSS offer should be delivered to the customer); sixth, identifying resources (acknowledge assets required to run the business, such as: knowledge, technology, competence, and human resources); seventh, defining cost structure (finding out different elements of costing); and eight, identifying possible revenue streams (evaluating revenue alternatives).…”

“…As the company aims to create closer relationships with its customers, the partners network (IoT provider, company, and customers) require a differentiated management of the activities among them. Therefore, new forms of communication are required on a regular basis, as suggested by Barquet (2015).…”

Design Preconditions for Product–Service Integration

“…Finally, concept mapping enabled us to specify the core terms by separating concepts, organizing synonyms of the core concepts. Besides the more typical sources, we were able to retrieve a lot of information of the fields these terms relate to, such as PhD dissertations [2,[70][71][72], project reports, and briefings [73][74][75][76].…”

REQUIREMENTS FOR A META-MODEL TO REPRESENT PRODUCT-SERVICE SYSTEMS (PSS) THAT INCORPORATE INTERNET OF THINGS (IoT) SOLUTIONS

“… MEPSS methodology sustainability assessment tool (DESIGN-ORIENTED, 2017), comprising 15 attributes from 3 design dimensions;  Business Model Canvas (OSTERWALDER; PIGNEUR, 2010), comprising 45 attributes from 9 design dimensions  "Configurator of PSS proposals" (BARQUET, 2015), comprising 41 attributes from 7 design dimensions  "Meta-model for PSS conceptualization" (TAN, 2010) comprising 3 design dimensions;  "Smart Objects Model" (KORTUEM et al, 2010), comprising 3 attributes from one design dimension.…”