PSS Strategic Alignment: Linking Service Transition Strategy with PSS Business Model

The Use of Business Model Canvas in the Design and Classification of Product-Service Systems Design Methods

The implementation of Product-Service Systems (PSS) calls for the modification of existing business models. The goal of the paper is to work out an analysis and a classification of PSS design methods used in the development of new business models. Using a systematic review method, we identified 60 PSS design methods. Following the examination of the major business model templates, we selected the Business Canvas Model for further studies. Then, coding rules were adopted to specify what elements of the Business Model Canvas impacts individual PSS design methods and an analysis was performed. In the final stage, methods were broken down by Business Model Canvas domains. Various PSS design methods presented in the literature address different areas of Business Model Canvas. The available PPS methods can be classified into three main groups: Group 1—including infrastructure and offering; Group 2—including infrastructure, offering and customers; and Group 3—including infrastructure, offering, customers and finance. Very few methods consider areas such as Key Partners, Customer Segments, Cost Structure and Revenue Streams. Nevertheless, there is no PPS design method that would address all of Business Model Canvas building blocks. The paper discusses PSS design in business model context. Classification of PSS design methods was proposed together with new possibilities to develop business models based on this classification. The proposed approach illustrates the combination of PSS design methods applied in food processing and agricultural machines industry.

Formulating Service-Oriented Strategies for Servitization of Manufacturing Companies

Servitization requires the acquisition and development of service-oriented capabilities. Research has contributed considerably to the investigation of the necessary capabilities for successful servitization and the introduction of numerous service-based capabilities. However, previous studies typically focus on proposing a general set of capabilities or processes for servitization. There is limited knowledge of how a manufacturing company can identify the necessary capabilities and plan the corresponding development actions following its servitization context. Through two phases of a case study, this research proposes a service-oriented strategy formulation method. The method supports the analysis of manufacturing companies’ servitization contexts that lead to appropriate identification of the necessary capabilities for successful servitization. This method further guides the formulation of service-oriented strategies as the strategic logic in how manufacturing companies implement servitization, including the corresponding actions to develop the required capabilities. Finally, the application in a Japanese office machinery manufacturer illustrates the applicability and usability of the proposed method in facilitating the formulation of service-oriented strategies for the servitization of manufacturing companies.