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Development of an Innovation Model Based on a Service-Oriented Product Service System (PSS)

Author

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  • Seungkyum Kim

    (Department of Industrial Engineering, Seoul National University, 1 Gwanak-ro, Gwanak-gu, Seoul 151-742, Korea)

  • Changho Son

    (Department of Weapon System Engineering, Korea Army Academy at Yeong-Cheon, 135-1 Changhari, Young-Cheon, Gyeongbuk 770-849, Korea)

  • Byungun Yoon

    (Department of Industrial & Systems Engineering, Dongguk University, Seoul 04620, Korea)

  • Yongtae Park

    (Department of Industrial Engineering, Seoul National University, 1 Gwanak-ro, Gwanak-gu, Seoul 151-742, Korea)

Abstract

Recently, there have been many attempts to cope with increasingly-diversified and ever-changing customer needs by combining products and services that are critical components of innovation models. Although not only manufacturers, but also service providers, try to integrate products and services, most of the previous studies on Product Service System (PSS) development deal with how to effectively integrate services into products from the product-centric point of view. Services provided by manufacturers’ PSSes, such as delivery services, training services, disposal services, and so on, offer customers ancillary value, whereas products of service providers’ PSSes enrich core value by enhancing the functionality and quality of the service. Thus, designing an effective PSS development process from the service-centric point of view is an important research topic. Accordingly, the purpose of this paper is to propose a service-oriented PSS development process, which consists of four stages: (1) strategic planning; (2) idea generation and selection; (3) service design; and (4) product development. In the proposed approach, the PSS development project is initiated and led by a service provider from a service-centric point of view. From the perspective of methodology, customer needs are converted into product functions according to Quality Function Deployment (QFD), while Analytic Hierarchy Process (AHP) is employed to prioritize the functions. Additionally, this paper illustrates a service-oriented PSS development that demonstrates the application of the proposed process. The proposed process and illustration are expected to serve as a foundation for research on service-oriented PSS development and as a useful guideline for service providers who are considering the development of a service-oriented PSS.

Suggested Citation

  • Seungkyum Kim & Changho Son & Byungun Yoon & Yongtae Park, 2015. "Development of an Innovation Model Based on a Service-Oriented Product Service System (PSS)," Sustainability, MDPI, vol. 7(11), pages 1-23, October.
    • Handle: RePEc:gam:jsusta:v:7:y:2015:i:11:p:14427-14449:d:57939
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    References listed on IDEAS

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    1. Vaidya, Omkarprasad S. & Kumar, Sushil, 2006. "Analytic hierarchy process: An overview of applications," European Journal of Operational Research, Elsevier, vol. 169(1), pages 1-29, February.
    2. Arnold Tukker, 2004. "Eight types of product–service system: eight ways to sustainability? Experiences from SusProNet," Business Strategy and the Environment, Wiley Blackwell, vol. 13(4), pages 246-260, July.
    3. Saaty, Thomas L., 1990. "How to make a decision: The analytic hierarchy process," European Journal of Operational Research, Elsevier, vol. 48(1), pages 9-26, September.
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    Cited by:

    1. Jürgen Anke, 2019. "Design-integrated financial assessment of smart services," Electronic Markets, Springer;IIM University of St. Gallen, vol. 29(1), pages 19-35, March.
    2. Hakyeon Lee & Hanbin Seo & Youngjung Geum, 2018. "Uncovering the Topic Landscape of Product-Service System Research: from Sustainability to Value Creation," Sustainability, MDPI, vol. 10(4), pages 1-15, March.
    3. Durán-Romero, Gemma & López, Ana M. & Beliaeva, Tatiana & Ferasso, Marcos & Garonne, Christophe & Jones, Paul, 2020. "Bridging the gap between circular economy and climate change mitigation policies through eco-innovations and Quintuple Helix Model," Technological Forecasting and Social Change, Elsevier, vol. 160(C).
    4. Dami Moon & Eri Amasawa & Masahiko Hirao, 2019. "Laundry Habits in Bangkok: Use Patterns of Products and Services," Sustainability, MDPI, vol. 11(16), pages 1-17, August.
    5. Wai Ming To & Billy T. W. Yu & Peter K. C. Lee, 2018. "How Quality Management System Components Lead to Improvement in Service Organizations: A System Practitioner Perspective," Administrative Sciences, MDPI, vol. 8(4), pages 1-14, November.
    6. Mariusz Salwin & Ilona Jacyna-Gołda & Andrzej Kraslawski & Aneta Ewa Waszkiewicz, 2022. "The Use of Business Model Canvas in the Design and Classification of Product-Service Systems Design Methods," Sustainability, MDPI, vol. 14(7), pages 1-23, April.

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