Cost evaluation challenges for Internet of Things (IoT) based Product/Service-Systems (PSS)

Abstract Increasingly cost competitive Internet of Things embedded solutions support the transition of traditional business models to Product-Service Systems. One of the most challenging but rewarding PSS types is maintenance. This work aims to discuss the differences between a traditional time/use-based maintenance model in opposition to an IoT-enabled maintenance cost model, by conducting a case study in a machinery industry company in partnership with an IoT provider. Findings show that economy of scale is observed with a decrease in the need for repair visits. The ubiquitous nature of IoT allows for continuous customer support, reinforcing better equipment practices and increasing performance.