Estimating the value of servitization: A non-monetary method based on forecasted competitive advantage

Abstract The present contribution proposes a decision support paradigm that elucidates factors ensuing from Product-Service System implementations and that might be neglected due to assessment difficulties. These aspects emerge when companies are exposed to new business model scenarios underlying servitized propositions. The outcomes represent the backbone for the creation of a methodology and a quantitative estimation index, named the Servitization Value Correction Coefficient , devised as a reference term to assess and to forecast the economic value obtained by the introduction of a Product-Service System. The proposed methodology introduces an original criterion to give quantification of qualitative variables not addressed before. It is based on different factors coming into play in Product-Service System adoption that can bring both benefits and drawbacks. The study was carried out in firms initially unaware of Product-Service System opportunities.

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