Economic Assessment of PSS Value Networks – An Algorithmic Approach

Abstract

Product-Service Systems (PSS) are one of the business innovation drivers in terms of increasing the value for the customer and for the actors involved in PSS provision. This paper reports on a framework for assessing the economic value out of PSS provision considering a multi-actor perspective. The originality of the proposed framework is twofold: enabling an attribution of the costs (and revenues) to the actors involved in the value network, and considering the peculiarities of the use phase in cost and revenue calculation, i.e. impact of PSS contract duration and of the intensification of the product use through take-back systems.

System Modelling and Analysis to Support Economic Assessment of Product-Service Systems

“…For instance, [10,28] proposed a methodology that coupled TCL and ABC costing methods, which were applied to industrial cases specific to use-oriented PSS. Along the same lines, [29] introduced a methodology for uncertainty assessment in PSS costing based on the Monte-Carlo simulation, which was complementary to the costing method reported in [28]. Moreover, [30,31] approached the problem of multi-actor integration from a PSS development angle, which however lacked detailed costing methods.…”

Building win-win value networks for product-service systems' delivery

“…Then the contract management algorithm proceeds as follows: updating contract status allowing to launch new contracts, closing contracts coming to an end, and updating the lifetime of still ongoing contracts. Contract management enables the following operations: executing services and component replacement, calculating material requirements, and updating cost and revenue indicators (Medini et al, 2018(Medini et al, , 2021. The algorithm and the whole model are implemented in a web platform in PHP (Hypertext Pre-processor) (Figure 1).…”