An Investigation of Product Service System Models

With an increasingly competitive global market, cost, quality, and technology leadership are no longer sufficient for businesses to secure competitive advantage. Customers are increasingly demanding product and service combinations which can be tailored to their specific needs. This is known as Product Service Systems (PSS). PSS allows companies to move up the value chain and focus on delivering knowledge intensive products and services and provide highly customizable product/ service bundles. Due to the inherent differences between products and services, many companies fail to integrate the two effectively and didn’t successfully exploit the potential of an extended service business model. This paper discusses two research based PSS models and PSS models developed through industrial application and feedback. Similarities and differences will be explored, discussed and rationalised in order to gain an understanding of the variations in PSS design approaches.

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