Integrating Product-Service Systems with New Business Models Definition for Manufacturing Industries

Integrating Product-Service Systems with New Business Models Definition for Manufacturing Industries

Pedro C. Marques (Faculty of Engineering, Universidade Lusófona, Lisbon, Portugal) and Pedro F. Cunha (School of Technology, Instituto Politécnico de Setúbal, Estefanilha, Portugal)
DOI: 10.4018/ijssmet.2014040105
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Abstract

Nowadays, manufacturing companies are pressured to be competitive and innovative. Particularly this concerns the delivery of value to their customers. The assessment of the overall value chain, designed and implemented for a specific product and/or service, should be sustained by new business models (NBM), thus contributing to higher levels of customer satisfaction. Integrated product-services are assuming importance, allowing manufacturing companies to achieve longer and stable relationships with their customers. This requires, among other, organizational changes and novel methodologies for product-service development. In fact, an effective integration allows product-service innovation, which being exploited, contributes significantly to businesses' competitiveness and sustainability. In this paper, a “roadmap” for NBM definition and implementation is presented, along with a new methodology for Product-Service Systems (PSS) development. Two case studies are used to test both the roadmap and the PSS methodology. As such, this work is expected to contribute to a clear understanding of NBM and their integration in a methodology for PSS.
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1. Introduction

We are facing globalization. Hence, the sustainable competitiveness of manufacturing companies is important in supporting economic growth and the creation of new employment. This can be made, for instance, through the delivery of added value product-services. Therefore, manufacturing companies are challenged to compete in terms of added value, achieving supremacy in the markets, since purely cost-based competition is not compatible with the goal of maintaining social and sustainability values (Brady et al., 2005; Cooka, 2006). The added value is related to the company’s ability in delivering customer-focused solutions, adding, for example, services into their core products. This trend, servicing of manufacturing, is getting more importance in our global economy (Bates et al., 2003; Rothenberg, 2007; Vasantha et al., 2011). To support this trend, companies call for new methodologies, to drive them into a paradigm shift, i.e., from considering independently products and services, to start considering them integrated (Baines et al., 2012). The clear understanding of ‘Product-Service Systems’ (PSS) allows companies to shift their businesses, initially focused in the design and delivery of products, to start delivering systems of product-service (Manzini & Vezzoli, 2002). indeed, companies are becoming more responsible in maintaining product’s life-cycle (Meyer et al., 2013) and consequently, a whole life-cycle’s business model (BM) is required and imperative (Aurich et al., 2006). With PSS, customers have more customized offers, with a higher quality and new functionalities (Maussang & Zwolinski, 2009).

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