Implications of the transition to a product-service system on the business model

Abstract

Product-service system (PSS) is a very complex concept that involves multiple aspects (e.g. business, environment and design). PSS have the potential to reduce the adverse environmental impact of manufacturing while simultaneously gaining economic benefit. When competition on the basis of price, time, quality, flexibility or environment has become insufficient for the success of a company, the adoption of a PSS business model can have a beneficial impact on company competitiveness. However, the shift from product to product-service is a major strategic decision which not only has implications on some of the classical components of a traditional business model, but other elements should also be taken into account. The authors approach the PSS business model from this perspective and identify two new components in addition to the traditional ones: business strategy as the driving force for all the other elements, and sustainability, because PSS are believed to have the potential to reduce the environmental burden.