Change search
ReferencesLink to record
Permanent link

Direct link
What’s in it for the Provider?: A Lifecycle-Focused Approach towards Designing for Value in Product-Service Systems
Linköping University, Department of Management and Engineering, Environmental Technology and Management. Linköping University, Faculty of Science & Engineering.ORCID iD: 0000-0003-4259-1681
2016 (English)Licentiate thesis, comprehensive summary (Other academic)
Abstract [en]

Combining products and services into Product-Service Systems (PSS), which are often owned and even operated by the company offering them, is seen as an important element of conducting more sustainable business. The prospective environmental benefits of PSS lie mainly in the improved resource- and operational efficiency. This is achieved by way of a critical shift in incentive structure: If an industrial company assumes responsibility for an offering throughout the lifecycle, the terms on which that company operates are changed substantially in comparison to traditional product sales. Instead of benefiting from a short lifetime through additional sales opportunities or making profit through the sale of spare parts, in highly integrated PSS, each parts exchange, each technicians’ visit and each day the lifetime of the offering is reduced directly affects the bottom line of the provider. Due to that, solely as a result of economic rationality, a provider of these offerings has an incentive to design in such a way that the life of this offering is prolonged, need for spare parts is reduced, service activities are facilitated and simplified, and that the conditions are in place to allow for a second or third life of the offering through remanufacturing. Regardless of this compelling logic, at times, industrial companies fail to establish the preconditions to capturing these benefits as they continue to rely on product and sales-centric design processes even though they provide PSS.

This thesis aims to examine this unexploited opportunity from two vantage points. On the one hand, methods conceived in academia to support industry in implementing and executing joint, lifecycle-focused design of products and services, and the use of these methods in practice, are examined. Here, the focus firstly lies on understanding how PSS are designed today, and secondly, on what should change about PSS design methods to improve their implementability and usability in industrial practice, so that they can fulfill their supposed role as facilitators of efficient PSS design and operation. On the other hand, the possible benefits of providing specifically designed and lifecycle-focused PSS as an industrial company are in focus. To this end, the value attained by providers throughout the use phase of PSS is investigated, to then identify possible approaches towards enhancing this value. Eventually, both focus-areas are joined in an effort to examine the interaction between method-supported, lifecycle-oriented PSS design and the value attained by providers of such offerings.

As a result of the research, a lacking adaptation of design processes to PSS is identified in the case companies. Further, shortcomings of PSS design methods conceived in academia, e.g. excessive complexity, lacking clarity and rigidity, are found in both literature as well as in a study with an industrial company. To take a first step towards rectifying this issue, six characteristics intended to enhance implementability and usability of PSS design methods, are presented. The value attained by PSS providers has been found to be a complex but important subject. In a case study, value determinants of high relevance to the use phase of the lifecycle have been identified and assessed for their utility as indicators in the evaluation and enhancement of PSS offerings in the design phase. The practitioners involved were supportive of the applicability of the systematic approach presented to capture more value through offering PSS.

In joining both the value- and method-oriented approach, the mutual dependency of both aspects is discussed. In order to provide PSS in an economically and environmentally efficient fashion, adapting the existing design processes is imperative. The value attained by the provider can, complementary to existing customer-centric approaches, serve as an important goal for the adaptation of design processes. Ultimately, through understanding the change in incentive structure at the core of PSS, and through implementing a value-driven design process supported by efficient and effective methods aimed at providing both customer value and capturing provider benefits throughout the lifecycle, there is a genuine potential of conducting more sustainable business.

Place, publisher, year, edition, pages
Linköping: Linköping University Electronic Press, 2016. , 76 p.
Series
Linköping Studies in Science and Technology. Thesis, ISSN 0280-7971 ; 1757
Keyword [en]
Integrated Product Service Offerings; Engineering Design; Value Driven Design; Evaluation; Design Methods; Provider Value; Key Performance Indicators; PSS;
National Category
Environmental Management
Identifiers
URN: urn:nbn:se:liu:diva-130977DOI: 10.3384/lic.diva-130977ISBN: 9789176856963 (Print)OAI: oai:DiVA.org:liu-130977DiVA: diva2:957472
Presentation
2016-09-23, ACAS, A-Building, Campus Valla, Linköping University, Linköping, 13:00 (English)
Opponent
Supervisors
Available from: 2016-09-06 Created: 2016-09-02 Last updated: 2016-09-06Bibliographically approved
List of papers
1. PSS without PSS design: possible causes, effects and solutions
Open this publication in new window or tab >>PSS without PSS design: possible causes, effects and solutions
2016 (English)In: Sustainability Through Innovation in Product Life Cycle Design / [ed] Mitsutaka Matsumoto, Keijiro Masui, Shinichi Fukushige and Shinsuke Kondoh, Singapore: Springer, 2016, 1Chapter in book (Refereed)
Abstract [en]

Product-Service Systems (PSS) are seen as a cornerstone of a future circular economy. However, in order to achieve the desired environmental benefits, the industrial implementation of PSS design is key. This chapter discusses the apparent lack of an adaptation of design processes to PSS or adoption of PSS design methods within companies, which are nevertheless successfully offering PSS. Based on experiences at two companies and under close regard of the relevant literature, possible causes of this lack of method adaptation/adoption are discussed, and the effects this may have are deliberated. Lastly, potential solutions to this issue and ways forward are introduced and reflected upon focusing on the companies.

Place, publisher, year, edition, pages
Singapore: Springer, 2016 Edition: 1
Series
, EcoProduction, ISSN 2193-4614 ; 2016
Keyword
Method Adoption; Process Adaptation; EcoDesign; Integrated Product Service Offerings;
National Category
Environmental Management Engineering and Technology
Identifiers
urn:nbn:se:liu:diva-130909 (URN)9789811004698 (Print) (ISBN)9789811004711 (eBook) (ISBN)
Available from: 2016-08-30 Created: 2016-08-30 Last updated: 2016-09-06Bibliographically approved
2. Facilitating Industrial Adoption of Design Methods for Product-Service Systems
Open this publication in new window or tab >>Facilitating Industrial Adoption of Design Methods for Product-Service Systems
2015 (English)In: Proceedings of the 20th International Conference of Engineering Design (ICED15) / [ed] Christian Weber, Stephan Husung, Gaetano Cascini, Marco Cantamessa, Dorian Marjanovic, Frederico Rotini, DESIGN SOC , 2015, Vol. 7, 301-310 p.Conference paper (Refereed)
Abstract [en]

In contrast to increasing evidence detailing both economic and environmental advantages of Product-Service Systems (PSS), the number of PSS provided in the market is still limited. Limited adoption in general can in part be linked to a limited implementability of PSS-focused design methods.

This paper aims to provide a first account of characteristics intended to support developers of PSS design methods in providing high levels of implementability and usability. Since fields adjacent to PSS design, such as engineering design or eco-design, have experienced similar challenges in method adoption, literature focusing on this was reviewed. The applicability of the challenges found for PSS design methods was subsequently evaluated with a questionnaire among practitioners involved with the trial of a PSS design method over an extended timeframe. In order to tackle the challenges identified, beneficial properties found in the literature on PSS design methods were utilized in order to derive six characteristics. These are intended as a first orientation for developers aiming to facilitate a broad adoption and use of PSS design methods, and as a discussion basis in the research community.

Place, publisher, year, edition, pages
DESIGN SOC, 2015
Series
, International Conference on Engineering Design, ISSN 2220-4334
Keyword
Design Methods; Method Implementation; PSS Design
National Category
Environmental Management
Identifiers
urn:nbn:se:liu:diva-122813 (URN)000366305800030 ()978-1-904670-70-4 (ISBN)
Conference
DS 80-7 Proceedings of the 20th International Conference on Engineering Design (ICED 15) Vol 7: Product Modularisation, Product Architecture, systems Engineering,Product Service Systems, Milan, Italy, 27-30.07.15
Available from: 2015-11-24 Created: 2015-11-24 Last updated: 2016-09-06Bibliographically approved
3. ProVa – Provider Value Evaluation for Integrated Product Service Offerings
Open this publication in new window or tab >>ProVa – Provider Value Evaluation for Integrated Product Service Offerings
2015 (English)In: Procedia CIRP, ISSN 2212-8271, Vol. 30, 305-310 p.Article in journal (Refereed) Published
Abstract [en]

Through the provision of integrated products and services, solution providers have more to gain than solely profit. This paper introduces the concept of provider value, which is novel in the area of integrated products and services. Further, a method is proposed (ProVa) to identify and evaluate the provider value of an integrated product service offering (IPSO) during the development process. ProVa allows for an assessment in terms of monetary value, but also with respect to other categories such as information and customer relations. In addition, aspects such as uncertainty and experience curve effects are considered.The functionality of ProVa is shown by application to a case in IPSO design.

Place, publisher, year, edition, pages
Elsevier, 2015
Keyword
Design Method, Product Service Systems Method, Design Evaluation, Supplier Value
National Category
Other Engineering and Technologies not elsewhere specified
Identifiers
urn:nbn:se:liu:diva-121588 (URN)10.1016/j.procir.2015.02.096 (DOI)000361471300052 ()
Conference
7th Industrial Product-Service Systems Conference - PSS, industry transformation for sustainability and business, Saint Étienne, France, 21-22 May 2015
Available from: 2015-09-26 Created: 2015-09-26 Last updated: 2016-09-02Bibliographically approved
4. Capturing and Enhancing Provider Benefits in Product-Service Systems – A Systematic, Design-Centered Approach
Open this publication in new window or tab >>Capturing and Enhancing Provider Benefits in Product-Service Systems – A Systematic, Design-Centered Approach
(English)Manuscript (preprint) (Other academic)
Abstract [en]

Offerings comprised of jointly designed and provided products and services (Product-Service Systems, PSS) are a cornerstone of a future circular economy. Implementing a design process aimed at facilitating the provision of PSS with a lifecycle focus is seen as an important step in implementing these new types of offerings. Challenges with this have been reported, and examples of companies offering PSS without adjustments to existing, product sales-centric design processes are found in literature. It is the assumption of the research presented, that one cause for this can be the lacking understanding for the full provider benefits obtainable through providing PSS, particularly increased material efficiency and thus, improved environmental performance. To combat this, this article reports a systematic approach to capturing information on the key indicators of benefits throughout the lifecycle as well as to enhancing future designs with a focus on these benefits. To this end, two methods are presented: Provider Value Analysis (PVA) supports the collection of important, provider-centered value dimensions in the use phase of the PSS lifecycle. Provider Value Evaluation (ProVa) guides the inclusion of the identified value dimensions as KPIs into the design phase and supports the enhancement of PPS design with a focus on the provider’s benefits throughout the lifecycle. In order to support the utility of these methods and to propose a first set of broadly applicable value dimensions, this article further reports a case study carried out with an industrial company and Original Equipment Manufacturer over the course of two years, applying the proposed systematic approach. As a result, by clarifying provider benefits throughout the entire lifecycle of a PSS offering, and by providing a systematic way towards capturing and enhancing these benefits, this article aims to clarify the incentives for adaptations to the existing design processes in industry and hopes to encourage companies to take advantage of the obtainable efficiency benefits of PSS, leading to improved overall environmental performance.

Keyword
Design for Sustainability; Provider Value; Value Engineering; E9ciency
National Category
Environmental Management Other Mechanical Engineering
Identifiers
urn:nbn:se:liu:diva-130980 (URN)
Available from: 2016-09-02 Created: 2016-09-02 Last updated: 2016-09-06Bibliographically approved

Open Access in DiVA

What’s in it for the Provider?: A Lifecycle-Focused Approach towards Designing for Value in Product-Service Systems(821 kB)22 downloads
File information
File name FULLTEXT01.pdfFile size 821 kBChecksum SHA-512
62576c1a2298cf8a158466692bcf2c3ff27a369939afec184d06d36152516c7d32ea64261af89cf60191e60834145b5e97d74022c9bae67380d3d618e3b02024
Type fulltextMimetype application/pdf
omslag(322 kB)6 downloads
File information
File name COVER01.pdfFile size 322 kBChecksum SHA-512
ce6c7aad035b17c9a713ffa73191469a4b9599d436c72602ee89ea84c68977ab04332120e43979b643582f051d4ec507d9fd967e674f97ca8bb8013385584b5d
Type coverMimetype application/pdf

Other links

Publisher's full text

Search in DiVA

By author/editor
Matschewsky, Johannes
By organisation
Environmental Technology and ManagementFaculty of Science & Engineering
Environmental Management

Search outside of DiVA

GoogleGoogle Scholar
Total: 22 downloads
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

Altmetric score

Total: 287 hits
ReferencesLink to record
Permanent link

Direct link