2 October 2023

Research Pick: A new framework for Product-Service Systems - "Building win-win value networks for product-service systems’ delivery"

Research in the International Journal of Manufacturing Technology and Management could help industries grappling with the challenges of creating effective Product-Service Systems (PSS). The work introduces an innovative framework designed to streamline the design and implementation of these systems.

PSS represent intricate combinations of products and services aimed at meeting the ever-evolving needs of customers. However, the success of such systems hinges on building a solid foundation in order to support the value network.

Sophie Peillon of the University of Lyon, Khaled Medini of the University Clermont Auvergne, France, and Thorsten Wuest of West Virginia University, USA have focused on PSS models in the cheese industry in order to help mature the role of value networks. With their work, they introduce a structured approach to decision-making in PSS design. Their approach offers methodical guidance and operational tools for this, and putatively other, industries hoping to improve the efficiency of their business. The framework will allow better collaboration between the various stakeholders, the team suggests, by facilitating a comprehensive analysis of value networks, revenue streams, costs, and value-capture mechanisms. Ultimately, the framework is about enabling constructive discussions and consensus building.

The team points out that their approach is particularly apt for small and medium-sized enterprises (SMEs). SMEs often have particular challenges when exploring PSS offerings, including the need for transparent discussions among partners and the cultivation of trust and collaboration. The framework simplifies the process of creating PSS value networks and assessing value capture, making it an indispensable resource for SMEs attempting to improve their business strategy.

The main contribution of the research paper to the field is fundamentally how it can involve all stakeholder perspectives and address their needs. It offers practical guidance to practitioners dealing with uncertainty and concerns related to value creation and capture in PSS.

Peillon, S., Medini, K. and Wuest, T. (2023) ‘Building win-win value networks for product-service systems’ delivery’, Int. J. Manufacturing Technology and Management, Vol. 37, Nos. 5/6, pp.619–637.

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