A SYSTEMATIC METHODOLOGY TO DEVELOP BUSINESS MODEL OF A PRODUCT SERVICE SYSTEM

Authors

  • Ming-Chuan Chiu National Tsing Hua University
  • Ming-Yu Kuo National Tsing Hua University
  • Tsai-Chi Kuo Chung Yuan Christian University

DOI:

https://doi.org/10.23055/ijietap.2015.22.3.1322

Keywords:

Product Service System, Multiple Criteria Decision Making, TOPSIS, Business Model, Strategy

Abstract

Environmental sustainability becomes a serious concern due to global warming and the growing population. To solve this issue, the concept of the Product Service System (PSS) has been developed in the last two decades. The purpose of Product Service System (PSS) not only meets the requirements of customers but also provides an economic/environmental/social triple-win solution for enterprises. However, it is a tremendous challenge for enterprises and related stakeholders to construct a PSS business model because a business model covers market, technology and profit. This study firstly presents a new process which could develop a PSS business model for enterprises to extend current products or services into new market segments. TOPSIS is then applied to evaluate and obtain the best solution. A case study showed that the PSS business model could create new business opportunities in the market. From customer’s perspective, PSS can add new values and improves the level of customer satisfaction via integration of service, product and systems. From social and environmental perspectives, products and services could be reused during their product life cycle and hence enhance the sustainability to the environment. The proposed PSS business model can create values not only to the enterprises but also to the environment and society.

Author Biographies

Ming-Chuan Chiu, National Tsing Hua University

Ming-Chuan Chiu is an Assistant Professor in the Department of Industrial Engineering and Engineering Management at National Tsing-Hua University in Taiwan where he obtained his BS and MS degrees. IE of NTHU is rank #1 IE department in Taiwan. He received his PhD degree in the Department of Industrial and Manufacturing Engineering at The Pennsylvania State University. His research interests focus on design for X factors, supply chain and product design integration, and service innovation. The aim of the above interests is to solve problems in product, service, and system development stage using systems thinking. 

Ming-Yu Kuo, National Tsing Hua University

Tsai-Chi Kuo, Chung Yuan Christian University

Downloads

Published

2015-04-13

How to Cite

Chiu, M.-C., Kuo, M.-Y., & Kuo, T.-C. (2015). A SYSTEMATIC METHODOLOGY TO DEVELOP BUSINESS MODEL OF A PRODUCT SERVICE SYSTEM. International Journal of Industrial Engineering: Theory, Applications and Practice, 22(3). https://doi.org/10.23055/ijietap.2015.22.3.1322

Issue

Vol. 22 No. 3 (2015)

Section

Product Design and Development

License

The Author(s) must formally transfer each article's copyright before publication in the INTERNATIONAL JOURNAL OF INDUSTRIAL ENGINEERING. Such transfer enables the Journal to defend itself against plagiarism and other forms of copyright infringement. Your cooperation is appreciated.

You agree that the copyright of your article to be published in the INTERNATIONAL JOURNAL OF INDUSTRIAL ENGINEERING - THEORY, APPLICATIONS, AND PRACTICE is hereby transferred, throughout the World and for the full term and all extensions and renewals thereof, to INTERNATIONAL JOURNAL OF INDUSTRIAL ENGINEERING - THEORY, APPLICATIONS, AND PRACTICE.

The Author(s) reserve(s): (a) the trademark rights and patent rights, if any, and (b) the right to use all or part of the information contained in this article in future, non-commercial works of the Author's own, or, if the article is a "work-for-hire" and made within the scope of the Author's employment, the employer may use all or part of the information contained in this article for intra-company use, provided the usual acknowledgments are given regarding copyright notice and reference to the original publication.

The Author(s) warrant(s) that the article is Author's original work and has not been published before. If excerpts from copyrighted works are included, the Author will obtain written permission from the copyright owners and credit the article's sources.

The author also warrants that the article contains no libelous or unlawful statements and does not infringe on the rights of others. If the article was prepared jointly with other Author(s), the Author agrees to inform the co-Author(s) of the terms of the copyright transfer and to sign on their behalf; or in the case of a "work-for-hire," the employer or an authorized representative of the employer.

The journal does not provide the author copy of the final paper when it is published. The author(s) can make(s) a subscription to INTERNATIONAL JOURNAL OF INDUSTRIAL ENGINEERING - THEORY, APPLICATIONS, AND PRACTICE if they want to get the final paper that has already been published.

The journal is registered with the Library of Congress (ISSN # 1943-670X). All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the journal.

The author reserves patent and trademark rights and the right to use all or part of the information contained in the article in future non-commercial works.