Dashboard-supported approach for feasibility and benefit analysis of Product-Service System-driven business models

Abstract

Once a company decides to become a Product-Service System (PSS) provider, this inevitably means that the company's business model needs to be transformed. The development of a PSS is thus closely linked to the development of the business model. This transformation is a complex and challenging process, espacially for small and medium-sized entprises (SME). Although these types of companies make up the largest number, they are reluctant to adopt PSS and PSS-driven business models. Especially in SME, this transformation process affects the whole organisaton. A systematic literature review has shown that there is little methodological support in this area, yet. To mitigate the resulting risks and support those responsible for this transformation process, this paper presents a multi-criteria feasibility and benefit analysis for PSS and the resulting business models. Based on initial PSS concepts and business model drafts, the presented approach allows a systematic analysis of the technical and organisational feasibility, the marketability and the monetary and non-monetary benefits of the PSS-driven business model and guides the user trough the whole process of the feasibilty and benefit analysis. The approach was prototypically tested within the scope of a research project in cooperation with a SME.

Adapting a Dashboard-Based Approach for Feasibility Analysis to Circular PSS Business Models

“…This dashboard-based approach is meant to support companies, especially SMEs, while carrying out a feasibility analysis in the early stage of the development of a PSS business model (Mahl et al, 2022). The tool was designed to be applicable with limited time, financial and human resources as well as to be structured, easily understandable and with clear decision criteria.…”

“…The criteria are rated with the help of a traffic light after a review has taken place, so that the dashboard reflects the current status regarding the progress of the analysis as well as an assessment of the feasibility of the concept at any time. However, the dashboard does not work alone, but is supported by other elements, as well as a step-by-step approach (Mahl et al, 2022).…”

“…Figure 1: Dashboard for feasibility analysis for PSS-driven business models (Mahl et al, 2022) The supporting elements are a list of possible criteria for the different dimensions to be checked, a list of tools and methods for checking the feasibility of individual criteria and defined states for the traffic light system for evaluation. In addition, the approach requires an elaborated concept for a PSS business model in the form of a Business Model Canvas (BMC) (Osterwalder et al, 2010) as input as well as the BMC which represents the current status of the company's business model.…”

“…Second, with the help of the appropriate tools from the tool list, the elements are examined and evaluated for their feasibility and the result is transferred to the dashboard. After all elements have been checked, a decision can be made on the basis of the evaluations as to whether the concept should be pursued further, whether it should be revised and subjected to a new examination or whether the concept should be discarded (Mahl et al, 2022).…”

Formulating Open Data-Based Value Propositions: An Evaluation and Comparison of Two Canvas Tools

“…The BMC is designed to be able to represent any type of business model [43] and can be used as an analysis, discussion support, or creativity support tool [11,56]. Through its nine cells, the BMC can also support economic, technical, and organizational feasibility evaluation [39]. Although there is currently a lack of knowledge of why the BMC is so widely adopted [30], its genericity, allowing it to accommodate business models from many different areas, is probably an important factor.…”