Quantifying the Economic Potential of a PSS: Methodology and Case Study

This paper presents a methodology to assess the economic potential of a Product-Service System for manufacturers of investment goods. The methodology is based on an analysis of the cost and value improvement potential per functional result, over the lifecycle of the investment good. In the theoretical description of the methodology, the importance of choosing a functional result as reference basis for the quantification is highlighted. The value-price-cost framework is proposed as the theoretical foundation of the economic model employed. The methodology is applied on a case study performed for a manufacturer and service provider of elevators, mainly focusing on the cost improvement potential that can be realized per functional result of an elevator.