Organizational capabilities for pay-per-use services in product-oriented companies

Gebauer, Heiko; Saul, Caroline Jennings; Haldimann, Mirella; Gustafsson, Anders

doi:10.1016/j.ijpe.2016.12.007

Cited by 97 publications

(64 citation statements)

References 56 publications

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“…PSS-related concepts include servitisation Kastalli and Van Looy 2013), service-dominant logic (Vargo and Lusch 2017), pay-per-use services (Gebauer et al 2017) and outcome-based services (Batista et al 2017;Visnjic et al 2017), etc. According to the ratio of products/services, PSS can be classified into different types (Hockerts and Weaver 2002;Tukker 2004): (a) product-oriented PSS, when manufactures sell products while providing related services, such as maintenance and consultancy; (b) use-oriented PSS, when manufactures sell the utility or accessibility of products without transferring the ownership to customers, such as leasing, renting and sharing; (c) result-oriented PSS, when manufacturers retain the ownership of products and sell the results of products, such as selling printed documents rather than printers.…”

Section: Product-service Systemsmentioning

confidence: 99%

Product-service systems business models for circular supply chains

Yang

Smart

Kumar

et al. 2018

Production Planning & Control

159

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Shifting supply chains from linear to closed-loop models is an important step towards circular economy. This paper investigates business model innovation for circular supply chains, and proposes that productservice systems (PSS) business models can enhance the circularity of supply chains through value creation in inner circles, circling long and cascading use circles. It adopts an exploratory case study method of a large Chinese manufacturing firm operating a traditional product-based business model and three types of PSS business models (i.e. product-, use-and result-oriented PSSs). The supply chain operations of the four distinct business models are analysed and their associated circularities are discussed. The findings show that business models akin to result-oriented PSS, have tighter and more efficient cycles of supply chain operations; which means, the repair, reuse and remanufacturing system is faster and the rate is higher. This research contributes to a better understanding of the relationship between business model innovation and supply chain circularity.

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Section: Product-service Systemsmentioning

confidence: 99%

Product-service systems business models for circular supply chains

Yang

Smart

Kumar

et al. 2018

Production Planning & Control

159

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“…Digital transformation strategies in BoP markets also span across corporate, operational, and functional strategies [16]. Compared to previous contributions focusing on single digital technologies (e.g., mobile payment technologies and remote monitoring) [25,26], our findings provide a comprehensive perspective on multiple digital technologies.…”

Section: Theoretical Implicationsmentioning

confidence: 80%

Section: Digitization In Bop Marketsmentioning

confidence: 99%

“…Connecting these products allows organizations to monitor and control product usage, which is often the basis for pay-per-use business models. Pay-per-use business models avoid high upfront investments, which can limit the ability of BoP customers to purchase products [26].A typical illustration of such a digital transformation is the recent rapid growth of solar home systems in BoP markets. Organizations providing solar home systems consisting of solar panels, batteries and the necessary electric devices rely on mobile payment systems for letting customers pay for electricity as it is consumed, instead of purchasing the whole system upfront.…”

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confidence: 99%

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Digital Transformation as an Enabler for Advanced Services in the Sanitation Sector

Saul

Gebauer

2018

Sustainability

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People in Base of the Pyramid markets still face difficulties when it comes to sanitation. Container-based Sanitation (CBS) services represent a promising advanced sanitation service. Despite the observed outcomes of CBS services, organizations face obstacles when providing these services. To overcome these obstacles, digital transformations of these services are being carried out. We rely on multiple case studies to understand these digital transformations. Our findings highlight (1) the challenges these case organizations faced before engaging in the digital transformation, (2) their individual digital transformation pathways, and (3) a general framework for digital transformations in BoP markets. Keywords:Container-based Sanitation; advanced services; Internet of Things; Base of the Pyramid; WASH; sanitation MotivationThe 4 billion people in the world who subsist on a few dollars a day are often referred to as the Base of the Pyramid (BoP) [1]. Much of the BoP population lacks access to necessary services [2,3] such as water, sanitation, and energy. Considering our empirical context of sanitation, 2.4 billion people do not have access to a toilet that is connected to a sewage system or vaults that are regularly emptied and serviced [4], 892 million of which practice open defecation [5]. In addition, the excreta of 4.5 billion people is not safely treated or disposed of properly [5]. To better serve the BoP population, organizations need to move beyond offering basic sanitation products to the BoP population.A typical illustration of a basic sanitation product is the building of pit latrines, without concern for the wider excreta management system. While this approach can be designed to be very affordable, scalable, and even suitable for rural areas, it is not suitable for densely populated, informal, urban areas. In such conditions, basic sanitation offerings do not guarantee how and where excreta enters a sanitation system; how and for how long it is contained on site; how it is transported to a treatment facility; how it is treated; and how it is finally disposed of or re-utilized [6]. A system-perspective is critical for achieving the Sustainable Development Goals (SDGs) 6.2 "... access to adequate and equitable sanitation and hygiene for all and end open defecation" and 6.3 "... improve water quality by reducing pollution, eliminating dumping and minimizing release of hazardous chemicals and materials, halving the proportion of untreated wastewater and substantially increasing recycling and safe reuse globally" [7].Therefore, organizations should create advanced sanitation services. The idea of advanced services originates from the servitization discussion describing how product companies are increasingly transitioning from offering products to basic services, and from basic services to advanced services [8]. Advanced services are generally distinguished by their focus on outcomes and the tight links to the necessary capabilities for achieving these outcomes [8].Container-based Sanitation (CBS) ...

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“…The PSS value offer is based on integrating a product‐service, enabling systems (ES), and actors’ network, which is supported by knowledge capitalization, to improve the PSS provider's capabilities . ˒ …”

Section: Theoretical Backgroundmentioning

confidence: 99%

Interface modeling for product‐service system integration

Maleki

Belkadi

Bonjour

et al. 2019

Systems Engineering

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Product‐service system (PSS) is proposed as a response to the increasing need for sustainable solutions. To provide PSS, companies develop a customized system interconnecting heterogeneous systems. Consequently, distinguishing and modeling the interfaces in PSS is challenging because of the heterogeneity of its tangible and intangible components and their continuous interactions. To tackle this issue, this paper presents a contribution to interface definition in PSS architecture. It aims at proposing a conceptual model supporting the definition and classification of the interfaces in PSS architecture as a system of systems. Based on systems engineering recommendations, the model defines the interfaces between subsystems and components. The application of the model is illustrated by a pragmatic use case concerning a station‐less bicycle‐sharing system.

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Organizational capabilities for pay-per-use services in product-oriented companies

Cited by 97 publications

References 56 publications

Product-service systems business models for circular supply chains

Product-service systems business models for circular supply chains

Digital Transformation as an Enabler for Advanced Services in the Sanitation Sector

Interface modeling for product‐service system integration

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