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PSS without PSS design: possible causes, effects and solutions
Linköping University, Department of Management and Engineering, Environmental Technology and Management. Linköping University, Faculty of Science & Engineering.ORCID iD: 0000-0003-4259-1681
2016 (English)In: Sustainability Through Innovation in Product Life Cycle Design: Part III / [ed] Mitsutaka Matsumoto, Keijiro Masui, Shinichi Fukushige and Shinsuke Kondoh, Singapore: Springer, 2016, 1, p. 233-248Chapter in book (Refereed)
Abstract [en]

Product-Service Systems (PSS) are seen as a cornerstone of a future circular economy. However, in order to achieve the desired environmental benefits, the industrial implementation of PSS design is key. This chapter discusses the apparent lack of an adaptation of design processes to PSS or adoption of PSS design methods within companies, which are nevertheless successfully offering PSS. Based on experiences at two companies and under close regard of the relevant literature, possible causes of this lack of method adaptation/adoption are discussed, and the effects this may have are deliberated. Lastly, potential solutions to this issue and ways forward are introduced and reflected upon focusing on the companies.

Place, publisher, year, edition, pages
Singapore: Springer, 2016, 1. p. 233-248
Series
EcoProduction, ISSN 2193-4614 ; 2016
Keywords [en]
Method Adoption; Process Adaptation; EcoDesign; Integrated Product Service Offerings;
National Category
Environmental Management Engineering and Technology
Identifiers
URN: urn:nbn:se:liu:diva-130909DOI: 10.1007/978-981-10-0471-1_16ISBN: 9789811004698 (print)ISBN: 9789811004711 (print)OAI: oai:DiVA.org:liu-130909DiVA, id: diva2:956602
Available from: 2016-08-30 Created: 2016-08-30 Last updated: 2025-02-10Bibliographically approved
In thesis
1. What’s in it for the Provider?: A Lifecycle-Focused Approach towards Designing for Value in Product-Service Systems
Open this publication in new window or tab >>What’s in it for the Provider?: A Lifecycle-Focused Approach towards Designing for Value in Product-Service Systems
2016 (English)Licentiate thesis, comprehensive summary (Other academic)
Abstract [en]

Combining products and services into Product-Service Systems (PSS), which are often owned and even operated by the company offering them, is seen as an important element of conducting more sustainable business. The prospective environmental benefits of PSS lie mainly in the improved resource- and operational efficiency. This is achieved by way of a critical shift in incentive structure: If an industrial company assumes responsibility for an offering throughout the lifecycle, the terms on which that company operates are changed substantially in comparison to traditional product sales. Instead of benefiting from a short lifetime through additional sales opportunities or making profit through the sale of spare parts, in highly integrated PSS, each parts exchange, each technicians’ visit and each day the lifetime of the offering is reduced directly affects the bottom line of the provider. Due to that, solely as a result of economic rationality, a provider of these offerings has an incentive to design in such a way that the life of this offering is prolonged, need for spare parts is reduced, service activities are facilitated and simplified, and that the conditions are in place to allow for a second or third life of the offering through remanufacturing. Regardless of this compelling logic, at times, industrial companies fail to establish the preconditions to capturing these benefits as they continue to rely on product and sales-centric design processes even though they provide PSS.

This thesis aims to examine this unexploited opportunity from two vantage points. On the one hand, methods conceived in academia to support industry in implementing and executing joint, lifecycle-focused design of products and services, and the use of these methods in practice, are examined. Here, the focus firstly lies on understanding how PSS are designed today, and secondly, on what should change about PSS design methods to improve their implementability and usability in industrial practice, so that they can fulfill their supposed role as facilitators of efficient PSS design and operation. On the other hand, the possible benefits of providing specifically designed and lifecycle-focused PSS as an industrial company are in focus. To this end, the value attained by providers throughout the use phase of PSS is investigated, to then identify possible approaches towards enhancing this value. Eventually, both focus-areas are joined in an effort to examine the interaction between method-supported, lifecycle-oriented PSS design and the value attained by providers of such offerings.

As a result of the research, a lacking adaptation of design processes to PSS is identified in the case companies. Further, shortcomings of PSS design methods conceived in academia, e.g. excessive complexity, lacking clarity and rigidity, are found in both literature as well as in a study with an industrial company. To take a first step towards rectifying this issue, six characteristics intended to enhance implementability and usability of PSS design methods, are presented. The value attained by PSS providers has been found to be a complex but important subject. In a case study, value determinants of high relevance to the use phase of the lifecycle have been identified and assessed for their utility as indicators in the evaluation and enhancement of PSS offerings in the design phase. The practitioners involved were supportive of the applicability of the systematic approach presented to capture more value through offering PSS.

In joining both the value- and method-oriented approach, the mutual dependency of both aspects is discussed. In order to provide PSS in an economically and environmentally efficient fashion, adapting the existing design processes is imperative. The value attained by the provider can, complementary to existing customer-centric approaches, serve as an important goal for the adaptation of design processes. Ultimately, through understanding the change in incentive structure at the core of PSS, and through implementing a value-driven design process supported by efficient and effective methods aimed at providing both customer value and capturing provider benefits throughout the lifecycle, there is a genuine potential of conducting more sustainable business.

Place, publisher, year, edition, pages
Linköping: Linköping University Electronic Press, 2016. p. 76
Series
Linköping Studies in Science and Technology. Thesis, ISSN 0280-7971 ; 1757
Keywords
Integrated Product Service Offerings; Engineering Design; Value Driven Design; Evaluation; Design Methods; Provider Value; Key Performance Indicators; PSS;
National Category
Environmental Management
Identifiers
urn:nbn:se:liu:diva-130977 (URN)10.3384/lic.diva-130977 (DOI)9789176856963 (ISBN)
Presentation
2016-09-23, ACAS, A-Building, Campus Valla, Linköping University, Linköping, 13:00 (English)
Opponent
Supervisors
Available from: 2016-09-06 Created: 2016-09-02 Last updated: 2025-02-10Bibliographically approved
2. Effective and efficient design and provision of product-service systems: challenges, opportunities, and solutions
Open this publication in new window or tab >>Effective and efficient design and provision of product-service systems: challenges, opportunities, and solutions
2019 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

The world manufacturing companies operate in is changing. In the past, these companies relied on the design and sale of products. Today, this linear model of business is becoming increasingly insufficient. As customers are more and more focused on their core business, buying and operating machinery and other goods becomes unattractive to them. In response to this, manufacturing companies are expanding their value capture into additional stages of the product lifecycle by providing integrated offerings of products and services — Product-Service Systems (PSSs).

Designing and providing PSSs is fundamentally different from traditional product sales. Expanding to become a PSS provider is, therefore, challenging for companies with a history of designing and selling products. Departing from this, it is the aim of this thesis to support manufacturing companies in their expansion to effective and efficient design and provision of PSSs. The research reported has both descriptive and prescriptive properties, reflecting the goals of understanding the status quo in manufacturing companies’ practice and providing support based on this.

To establish a point of departure, the current design and provision of two manufacturing companies expanding their business towards PSSs was investigated. From this, an in-depth understanding of the status quo and a number of challenges emerged.

Based on this, the research had the goal to contribute to identifying and developing solutions to these challenges, with an initial focus on methods supporting PSS design and provision. However, although methods fitting to the challenges identified exist, they appear to receive limited uptake in manufacturing companies’ practice. In order to improve their practical utility, a structured method is proposed to assist users in both academia and practice in developing methods in a requirements-oriented fashion. The utility of methods in improving the efficiency and effectiveness of PSS design and provision is thereby to be enhanced.

A particular challenge for manufacturing companies expanding to become PSS providers is the change in how value is captured: Resulting from the extensive involvement throughout the lifecycle, a need for a broader, multidimensional understanding of value capture was identified. However, the manufacturing companies investigated have been found to experience challenges in grasping this change, with a focus on a product sales-centric understanding of value capture remaining prevalent. To support companies towards reaping the benefits of the expansion to PSS design and provision, methods to explore how value is currently created and captured in the use phase and how to enhance the future value capture based on that information in the design phase have been developed and applied. As a result, broadly relevant value dimensions were attained, aiming to facilitate a lifecycle-focused, effective, and efficient design and provision of PSSs.

Eventually, to broaden the understanding of effective and efficient design and provision of PSSs in practice today, the potential contributions of real-world PSSs to a circular economy were investigated based on an existing framework. The result was ambiguous, indicating both advancements compared to traditional sales and substantial room for improvement, particularly with a focus on the absolute decoupling of economic activity and resource use.

Based on the synthesis of the research results, manufacturing companies are supported in their expansion to effective and efficient design and provision of PSSs — and towards a promising future.

Place, publisher, year, edition, pages
Linköping: Linköping University Electronic Press, 2019. p. 120
Series
Linköping Studies in Science and Technology. Dissertations, ISSN 0345-7524 ; 1978
Keywords
Product-Service Systems, Servitization, Value, Design, Circular Economy
National Category
Environmental Management
Identifiers
urn:nbn:se:liu:diva-156261 (URN)10.3384/diss.diva-156261 (DOI)9789176850916 (ISBN)
Public defence
2019-05-08, ACAS, A Building, Campus Valla, Linköping, 09:15 (English)
Opponent
Supervisors
Available from: 2019-04-10 Created: 2019-04-10 Last updated: 2025-02-10Bibliographically approved

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Matschewsky, Johannes

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