Product Service Systems as a Driver for Business Model Innovation: Lessons Learned From the Manufacturing Industry

Velamuri, Vivek K.; Bansemir, Bastian; Neyer, Anne‐Katrin; Möslein, Kathrin M.

doi:10.1142/s1363919613400045

Cited by 71 publications

(33 citation statements)

References 36 publications

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“…Among these, PSS has been studied by researchers from a wide range of fields and is considered as a pioneering innovation of business models for sustainability (Maxwell and Van Der Vorst, 2003;Tukker 2015;Velamuri et al, 2013).…”

Section: Product-service Systems (Pss) As a Pioneering Innovation Of mentioning

confidence: 99%

Value uncaptured perspective for sustainable business model innovation

Yang

Evans

Vladimirova

et al. 2017

Journal of Cleaner Production

324

232

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Sustainability has become one of the key factors for long-term business success. Recent research and practice show that business model innovation is a promising approach for improving sustainability in manufacturing firms. To date business models have been examined mostly from the perspectives of value proposition, value capture, value creation and delivery. There is a need for a more comprehensive understanding of value in order to promote sustainability. This paper proposes value uncaptured as a new perspective for sustainable business model innovation, and develops four forms of value uncaptured: value surplus, value absence, value missed and value destroyed. This paper also proposes a framework of using value uncaptured for sustainable business model innovation. This framework has been validated in case studies in six product-service systems firms with advanced manufacturing technologies. The empirical studies identify 26 main sources of value uncaptured throughout the product life cycle. The findings show that (a) the new perspective of value uncaptured can help manufacturing firms understand the negative aspects of their business models; (b) the four forms and 26 sources can assist firms in identifying value uncaptured in a structured way; and (c) the identified value uncaptured can trigger the discovery of new value opportunities which lead to new business models with higher sustainable value. This paper extends the existing studies on business models from the perspectives of value proposition, capture, creation and delivery, to value uncaptured. The proposed framework has helped firms identify value opportunities that trigger the innovation of sustainable business models. Therefore, this paper contributes to both theory and practice in the field of sustainable business models innovation.

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Section: Product-service Systems (Pss) As a Pioneering Innovation Of mentioning

confidence: 99%

Value uncaptured perspective for sustainable business model innovation

Yang

Evans

Vladimirova

et al. 2017

Journal of Cleaner Production

324

232

View full text Add to dashboard Cite

show abstract

“…business to consumer) PSS, since knowledge and experience regarding the PSS business models are still limited [8]. In comparison with quantitative research approach, qualitative data gives deep insights in the phenomenon under study by considering context-specific factors, complex patterns and causal relationships [18,19], which are very important in PSS context. The literature review shows that research work is in early phase of understanding when a PSS is sustainable and successful during the implementation and operational phases in addition to what are the factors and criteria to assess the sustainability.…”

Section: Research Proceduresmentioning

confidence: 99%

Product-service Systems as a Promising Approach to Sustainability: Exploring the Sustainable Aspects of a PSS in Brazil

Sousa

Miguel

2015

Procedia CIRP

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Product-Service Systems (PSS) represent a business proposition with potential to provide a wide range of economic, environmental, and social benefits, allowing achieving the sustainability. However, PSS does not necessarily lead to sustainable solutions and this potential must be assessed in each case. In this sense, the aim of this paper is to investigate sustainable aspects of a 'result oriented PSS' (a reverse osmosis water filter system) available in Brazil and compares it with the conventional product, the bottled water. Some aspects from the literature, mentioned as important in each sustainability dimension, were selected to analyze the PSS under study. A qualitative analysis was performed and demonstrates that in comparison with bottled water, the water filter PSS is competitive, satisfy customer needs, and has a relatively lower environmental impact. However, besides conceiving sustainable solutions, is necessary to identify which factors drive the implementation and diffusion of PSS. Some findings of this study suggest that the effects caused by unexpected consumer behavior and incorrect PSS application may compromise PSS sustainable performance during operational phase. An analysis of these effects during transition process is essential to successful sustainable strategies. The study aimed to contribute to the PSS empirical knowledge and to assist building a theoretical basis regarding PSS and sustainability.

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“…In general, BMI takes place when a company changes the way it generates value for its customers and for itself. BMI is defined as a novel combination of (A) the value propositions (i.e., perceived usefulness for customers), (B) the profit formula (i.e., the manner incomes are generated and costs are structured), and (C) key resources and processes (i.e., resources and processes necessary to create and deliver products or services) that are difficult to imitate (Velamuri et al, 2013). Following this definition a relevant change in one or more elements of a business model can result in BMI, which can then lead to superior value creation and in turn produce superior returns to the firm (Casadesus-Masanell and Ricart, 2010;Morris et al, 2005).…”

Section: Introduction To Business Model and Bmimentioning

confidence: 99%

The introduction of a competing business model: the case of eBay

Comberg

Velamuri

2017

IJTM

Self Cite

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In today's highly competitive business environment, the reasons for companies to engage in business model innovation (BMI) are manifold. The pressure on firms to innovate their business models results in either an adaptation of the incumbent business model, or the introduction of a new competing business model. Based on extant theory, we found that the reasons for a firm to engage in BMI can be clustered into three categories: 1) increased profitability; 2) improved strategic positioning; 3) customer attraction. By conducting an exploratory single case study approach, we confirmed these categories by identifying the distinct reasons for eBay to introduce a competing business model. We then highlight the impacts on the focal firm as a result of the new business model. We find that the introduction of a competing business model can create novel sources of value for the company and its customers. In total, the study emphasises that when firms launch competing business models, intended and unintended consequences can be both positive and negative.

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Product Service Systems as a Driver for Business Model Innovation: Lessons Learned From the Manufacturing Industry

Cited by 71 publications

References 36 publications

Value uncaptured perspective for sustainable business model innovation

Value uncaptured perspective for sustainable business model innovation

Product-service Systems as a Promising Approach to Sustainability: Exploring the Sustainable Aspects of a PSS in Brazil

The introduction of a competing business model: the case of eBay

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