PSS business model conceptualization and application^*

* This paper has also taken inspiration from the activity of the ASAP Service Management Forum (www.asapsmf.org), a community where scholars and practitioners collaborate in developing research projects and share findings in the servitization and service management fields.

Abstract

The discussion about business models has gained considerable attention in the last decade. Business model frameworks have been developed in the literature as management methods helping companies to comprehend and analyse their current business logic and guide the deployment of new strategies. In response to calls for a deeper understanding of the application of a business model approach to product-service systems (PSS), this study develops a two-level hierarchical framework that (i) includes a set of components with pertinent, second-order variables to take into account when undergoing the shift from products to solutions; (ii) supports industrial companies, especially SMEs, in designing their future business model and in consistently planning the actions needed to implement it. The framework was applied and refined within real-life settings. The application to KINE – a robot solutions supplier – shows how key challenges faced by servitization firms may be thoroughly addressed through the adoption of a business model perspective.

Keywords:

• Product-service systems (PSS)
• servitization
• business model (BM)
• framework
• SMEs

Acknowledgements

The work described in this document has been conducted as part of the project T-REX, research project funded by the European Union Seventh Framework Programme (FP7/2007-2013) under grant agreement no 609005 (https://t-rex-fp7).

Notes

* This paper has also taken inspiration from the activity of the ASAP Service Management Forum (www.asapsmf.org), a community where scholars and practitioners collaborate in developing research projects and share findings in the servitization and service management fields.