Product service system

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A product-service system (PSS), also known as a function-oriented business model, is a business model, developed in academia, that is aimed at providing sustainability of both consumption and production.[1]



Contents

[edit] What a PSS is

The two most widely accepted definitions of what a PSS is are those by Dr Oksana Mont, Assistant Professor at the International Institute for Industrial Environmental Economics at Lund University; and by Cees van Halen, Harry te Riele, and Mark Goedkoop, consultants commissioned by the Dutch government in 1999 to report on whether the promotion of Product Service Systems was indeed beneficial for both economy and ecology. Those definitions are that a PSS is:[2][3][4]

  • (Mont) "a system of products, services, supporting networks, and infrastructure that is designed to be competitive, satisfy customers' needs, and have a lower environmental impact than traditional business models"
  • (van Halen, te Riele, Goedkoop) "a marketable set of products and services capable of jointly fulfilling a user's needs"

Other people's definitions of a PSS include:[2]

  • (Manzini, Vezzoli) "the result of an innovation strategy, shifting the business focus from designing and selling physical products only, to selling a system of products and services which are jointly capable of fulfilling specific client demands"

Mont elaborates her definition as follows: A PSS is pre-designed system of products, service, supporting infrastructures, and necessary networks that is a so-called dematerialized solution to consumer preferences and needs. (The concept of dematerialization in this context is described in papers by Eva Heiskanen, some of which are listed in Further reading.) It is a new interpretation of the product value chain, that has a lower environmental impact than separate products and services fulfilling the same function outside of a single system. It is also a "self-learning" system, one of whose goals is continual improvement.[4][5]

[edit] Types of PSS

There are various issues in the nomenclature of the discussion of PSS, not least that services are products, and need material products in order to support delivery, however, it has been a major locus of research for several years. The research has focussed on a PSS as system comprising tangibles (the products) and intangibles (the services) in combination for fulfilling specific customer needs. The research has shown that manufacturing firms are more amenable to producing "results", rather than solely products as specific artefacts, and that consumers are more amenable to consuming such results. This research has identified three classes of PSS:[6]

Product Oriented PSS
This is a PSS where ownership of the tangible product is transferred to the consumer, but additional services, such as maintenance contracts, are provided.
Use Oriented PSS
This is a PSS where ownership of the tangible product is retained by the service provider, who sells the functions of the product, via modified distribution and payment systems, such as sharing, pooling, and leasing.
Result Oriented PSS
This is a PSS where products are replaced by services, such as, for example, voicemail replacing answering machines.

[edit] Impact of PSSes

Several authors assert that product service systems will improve eco-efficiency by what is termed "factor 4", i.e. an improvement by a factor of 4 times or more, by enabling new and radical ways of transforming what they call the "product-service mix" that satisfy consumer demands whils also improving the effects upon the environment.[6]

van Halen et al. state that the knowledge of PSS enables both governments to formulate policy with respect to sustainable production and consumption patterns, and companies to discover directions for business growth, innovation, diversification, and renewal.[5]

[edit] References

  1. ^ M.B. Cooka, T.A. Bhamrab and M. Lemonc (2006). "The transfer and application of Product Service Systems: from academia to UK manufacturing firms". Journal of Cleaner Production 14 (17): 1455–1465. Elsevier Ltd. doi:10.1016/j.jclepro.2006.01.018. 
  2. ^ a b Cees Van Halen, Carlo Vezzoli, Robert Wimmer (2005). Methodology for Product Service System Innovation. Assen: Uitgeverij Van Gorcum, 21. ISBN 9023241436. 
  3. ^ Daniel Brissaud, Serge Tichkiewitch, and Peggy Zwolinski (2006). Innovation in Life Cycle Engineering and Sustainable Development. Springer, 305. ISBN 1402046014. 
  4. ^ a b Sustainable Services Systems (3S): Transition towards sustainability?. Towards Sustainable Product Design, 6th International Conference, October 2001, Amsterdam, The Netherlands. Centre for Sustainable Design (2001-11-09).
  5. ^ a b Bill Cope and Diana Kalantzis (2001). Print and Electronic Text Convergence. Common Ground, 19,26. ISBN 1863350713. 
  6. ^ a b M Cook (2004). "Understanding the potential opportunities provided by service-orientated concepts to improve resource productivity", in Tracy Bhamra, Bernard Hon: Design and Manufacture for Sustainable Development 2004. John Wiley and Sons, 125. ISBN 1860584705. 

[edit] Further reading

[edit] Journal of Cleaner Production articles

  • Oksana Mont (2002). "Clarifying the Concept of Product-Service System" (PDF). Journal of Cleaner Production 10 (3): 237–245. doi:10.1016/S0959-6526(01)00039-7. 
  • Oksana Mont and T. Lindhqvist (December 2003). "The role of public policy in advancement of product service systems". Journal of Cleaner Production 11 (8): 905–914. Elsevier Science Ltd. doi:10.1016/S0959-6526(02)00152-X. 
  • Arnold Tukkera and Ursula Tischner (2006). "Product-services as a research field: past, present and future. Reflections from a decade of research". Journal of Cleaner Production 14 (17): 1552–1556. Elsevier Ltd. doi:10.1016/j.jclepro.2006.01.022. 
  • Oksana Mont (December 2003). "Editorial for the special issue of the Journal of Cleaner Production on Product Service Systems". Journal of Cleaner Production 11 (8): 815–817. Elsevier Science Ltd. doi:10.1016/S0959-6526(02)00163-4. 
  • Nicola Morelli (2006). "Developing new product service systems (PSS): methodologies and operational tools". Journal of Cleaner Production 14 (17): 1495–1501. Elsevier Ltd. doi:10.1016/j.jclepro.2006.01.023. 

[edit] Books and papers

  • Oksana Mont (2004). Product-service systems: Panacea or myth?, IIIEE Dissertations 2004:1. Lund University. ISBN 9188902331. 
  • Cees van Halen, Harry te Riele, and Mark Goedkoop. "PSS Reports". — a set of reports commissioned by the Dutch Ministry of Economic Affairs and the Ministry of Housing, Spatial Planning and the Environment
  • Ezio Manzini and Carlo Vezzoli (2002). "Product Service System and Sustainability" (PDF). . United Nations Environment Programme
  • L. Penin and C. Vezzoli (2005). "Designing Sustainable Product-Service System for All". . United Nations Environment Programme
  • C. Vezzoli and E. Manzini. "Design for Sustainable Consumption, in Perspective on Radical Changes to Sustainable Consumption and Production". SCORE workshop, 2006, Copenhagen. 
  • (2006) in A. Tukker and U. Tischner: New Business for Old Europe: product-service development competitiveness and sustainability. Sheffield: Greenleaf Publishing. 
  • Arnold Tukker (2004-07-13). "Eight types of product-service system: eight ways to sustainability? Experiences from SusProNet". Business Strategy and the Environment 13 (4): 246–260. John Wiley & Sons, Ltd and ERP Environment. doi:10.1002/bse.414. 
  • Hockerts, K. (1999). "Eco-efficient service innovation: increasing business–ecological efficiency of products and services", in Charter, M.: Greener Marketing: a global perspective on greener marketing practice. Sheffield: Greenleaf Publishing, 95–108. 
  • P. Hopkinson and P.James (2000). "Typology of Eco-efficient services". . University of Bradford
  • Oksana Mont (2000). "Product-Service Systems". . Swedish Environmental Protection Agency. AFR-Report 288
  • Oosterhuis, F., Rubik, F., and Scholl, G. (1996). "Product Policy in Europe: new environmental perspectives". . Kluwer
  • Rocchi, S. (1997). "Towards a new product-services mix. Masters thesis: International Institute for Industrial Environmental Economics". . Lund University
  • Schrader, U. (1996). "Consumption without ownership — a realistic way towards a more sustainable consumption?". 5th International Research conference of the Greening of Industry Network; Heidelberg, Germany. 
  • Helma Luiten, Marjolijn Knot, and T. Van der Horst (2001). "Sustainable Product–Service-Systems: The Kathalys Method". 2nd International Symposium on Environmentally Conscious Design and Inverse Manufacturing (EcoDesign'01): 190, EcoDesign. doi:10.1109/.2001.992344. 
  • R. Roy (2000). "Sustainable Product-service Systems". Futures: 289–299. 

[edit] Dematerialization

  • Eva Heiskanen (2000). "Dematerialisation: the potential of service-orientation and Information Technology".
  • Eva Heiskanen, Mikko Jalas, and Anna Kärnä (2000). "The Dematerialisation Potential of Services and IT: Futures Studies Methods Perspectives".
  • Eva Heiskanen and Mikko Jalas (2000). "Dematerialization Through Services — A Review and Evaluation of the Debate". 436. Finnish Ministry of Environment