• Journal of Korean Society of Industrial and Systems Engineering
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• v.33 no.2
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• pp.148-153
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• 2010

Nowadays, customers have increasing needs, so more and more enterprises are selling their products with additional services and or contents. The emergence of service added to the product leads to the emergence of the Product-Service Systems(PSS). Many researches related to PSS are mainly concerned with general PSS and PSS modeling, which can not readily assist manufactures of consumer products to implement and realize PSS solution. We have wondered whether customers can distinguish service functions from product functions. Through the case studies on Apple and Nintendo and the survey on the representative 5 IT products, we propose the design factors of products and services for PSS.

• Industrial Engineering and Management Systems
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• v.15 no.2
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• pp.181-195
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• 2016

In a product environment where various product-service systems (PSSs) are already being provided, the provision of a different type of PSS is difficult for second movers but necessary for their sustainability and differentiation. Despite the importance of providing distinguishing PSSs to market, prior PSS studies have not effectively considered the influence of existing PSSs in their methods. In response, we suggest an approach to generate new PSS concepts by employing general needs (GNs) and business system evolution patterns (BSEPs). Our approach 1) identifies customer GNs fulfilled by existing PSSs, 2) generates advanced PSS ideas from an evolutionary perspective by mapping the existing PSSs onto BSEPs, and 3) selects PSS ideas that can meet the unfulfilled or insufficiently considered GNs using a GN-PSS linking matrix, thereby generating new PSS concepts based on the selected ideas. The workings and practicability of this approach are illustrated using a PSS case study of furniture industry. This approach would provide PSS planners with an ability to generate the differentiated PSS concepts that handle the customer needs that have been untapped throughout a product's lifecycle. In addition, this approach as a module will have a synergetic effect when incorporated with other PSS methodologies.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.7 no.2
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• pp.55-61
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• 2012

Due to customers' constantly increasing demand for personalized products and services, manufacturing enterprises integrate tangible physical products and intangible services to provide more diverse physical products and services. Many researchers are concerned with Product-Service Systems (PSS) modeling, but we have wondered on the interactions between the product and the service in a PSS. To find relationships between the two in a PSS, the survey results on utilization of smart phone are analysed and compared based on the PSS design framework to identify design factors for PSS.

• Journal of Computational Design and Engineering
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• v.1 no.1
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• pp.37-47
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• 2014

We propose a new generic design methodology for different types of PSS. Product - Service System (PSS) has received much attention recently from academia and industry because of its benefits. PSS can provide customers values and functionalities, as well as physical products, to fulfill economic, social and environmental goals. Many methodologies have been proposed for designing PSSs. Most of the existing methodologies are domain specific and were proposed to solve specific problems in certain projects. Some methodologies are generic but they provide neither guideline to practitioners and designers nor reflect the differences in various PSS types. As a generic approach to guide practitioners and designers in designing PSS effectively, the proposed methodology also takes into account user involvement, business model and organizational structure. The proposed methodology is demonstrated through design examples of different types of PSSs.

• Korean Journal of Computational Design and Engineering
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• v.16 no.1
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• pp.31-40
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• 2011

Product-service system (PSS) is a system of products and service, supporting networks and infrastructure that is designed to be competitive. PSSs satisfy customers' needs more effectively and have a lower environmental impact than traditional business models. Therefore, many companies and governmental institutes are eager to implement the PSSs as a new business model. In this paper, we focus on industrial practices as new business models for the company. PSS, especially, is popular in electronic industry, so one can often observe such examples as iPod, iPhone, e-Book and etc in the field. We first thoroughly investigate the current practices of PSS in Korean electronic industry. The examples are surveyed and projected directions are given. Then, non-electronic PSSs are surveyed. Especially mechanical PSSs are intensively discussed. Based on the survey results, we propose several major development strategies of Sustainable PSS (SPSS). SPSS will bring a competitive edge for company as realization of sustainable development of PSS considering economy, society, and environment.

• Journal of Korean Institute of Industrial Engineers
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• v.37 no.3
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• pp.234-247
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• 2011

Product-service system (PSS) is a novel type of business model integrating products and services in a single system. It provides a strategic alternative to product-oriented economic growth and price-based competition in the global market. This paper first reviews the current status of PSS, including its concept, characteristics, benefits, and cases. This paper then reviews the existing literature and identifies major research issues for three main phases of a PSS development lifecycle, namely, PSS design, PSS evaluation, and PSS operation. This research is expected to contribute to promoting awareness and improving understanding of PSS in our society and planning of future research in this field.

• Journal of Computational Design and Engineering
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• v.3 no.2
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• pp.112-120
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• 2016

This paper proposes eight groups of twenty nine scoring criteria that can help designers and practitioners to compare and select an appropriate methodology for a certain problem in designing product service system (PSS). PSS has been researched for more than a decade and is now becoming more and more popular in academia as well as industry. Despite that fact, the adoption of PSS is still limited for its potential. One of the main reasons is that designing PSS itself is a challenge. Designers and developers face difficulties in choosing appropriate PSS design methodologies for their projects so that they can design effective PSS offerings. By proposing eight groups of twenty nine scoring criteria, this paper enables a "step by step" process to identify the most appropriate design methodology for a company's PSS problem. An example is also introduced to illustrate the use of the proposed scoring criteria and provide a clear picture of how different design methodologies can be utilized at their best in terms of application.

• Journal of Intelligence and Information Systems
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• v.17 no.4
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• pp.255-277
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• 2011

Product Service System(PSS), which is an integrated combination of product and service, provides new value to customer and makes companies sustainable as well. The objective of this paper draws Critical Successful Factors(CSF) of PSS through multiple case study. First, we review various concepts and types in PSS and Platform business literature currently available on this topic. Second, after investigating various cases with the characteristics of PSS and platform business, we select four cases of 'iPod of Apple', 'Kindle of Amazon', 'Zune of Microsoft', and 'e-book reader of Sony'. Then, the four cases are categorized as successful and failed cases according to criteria of case selection and PSS classification. We consider two methodologies for the case selection, i.e., 'Strategies for the Selection of Samples and Cases' proposed by Bent(2006) and the seven case selection procedures proposed by Jason and John(2008). For case selection, 'Stratified sample and Paradigmatic cases' is adopted as one of several options for sampling. Then, we use the seven case selection procedures such as 'typical', 'diverse', 'extreme', 'deviant', 'influential', 'most-similar', and 'mostdifferent' and among them only three procedures of 'diverse', 'most?similar', and 'most-different' are applied for the case selection. For PSS classification, the eight PSS types, suggested by Tukker(2004), of 'product related', 'advice and consulancy', 'product lease', 'product renting/sharing', 'product pooling', 'activity management', 'pay per service unit', 'functional result' are utilized. We categorize the four selected cases as a product oriented group because the cases not only sell a product, but also offer service needed during the use phase of the product. Then, we analyze the four cases by using cross-case pattern that Eisenhardt(1991) suggested. Eisenhardt(1991) argued that three processes are required for avoiding reaching premature or even false conclusion. The fist step includes selecting categories of dimensions and finding within-group similarities coupled with intergroup difference. In the second process, pairs of cases are selected and listed. The second step forces researchers to find the subtle similarities and differences between cases. The third process is to divide the data by data source. The result of cross-case pattern indicates that the similarities of iPod and Kindle as successful cases are convenient user interface, successful plarform strategy, and rich contents. The differences between the successful cases are that, wheares iPod has been recognized as the culture code, Kindle has implemented a low price as its main strategy. Meanwhile, the similarities of Zune and PRS series as failed cases are lack of sufficient applications and contents. The differences between the failed cases are that, wheares Zune adopted an undifferentiated strategy, PRS series conducted high-price strategy. From the analysis of the cases, we generate three hypotheses. The first hypothesis assumes that a successful PSS system requires convenient user interface. The second hypothesis assumes that a successful PSS system requires a reciprocal(win/win) business model. The third hypothesis assumes that a successful PSS system requires sufficient quantities of applications and contents. To verify the hypotheses, we uses the cross-matching (or pattern matching) methodology. The methodology matches three key words (user interface, reciprocal business model, contents) of the hypotheses to the previous papers related to PSS, digital contents, and Information System (IS). Finally, this paper suggests the three implications from analyzed results. A successful PSS system needs to provide differentiated value for customers such as convenient user interface, e.g., the simple design of iTunes (iPod) and the provision of connection to Kindle Store without any charge. A successful PSS system also requires a mutually benefitable business model as Apple and Amazon implement a policy that provides a reasonable proft sharing for third party. A successful PSS system requires sufficient quantities of applications and contents.

• Journal of the Korean Operations Research and Management Science Society
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• v.36 no.4
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• pp.81-89
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• 2011

In recent business environments, the competition among firms is shifting from the competition based on individual firm only to the competition based on alliance of firms. This is because it is not easy for a firm to perform all functions which consumers want. Thus, it is more effective to combine core competencies of different firms based on a strategic partnership. It is essential to establish a strategic partnership and this strategic partnership is a key success factor in PSS(Product-Service System) which combines products and services. In this paper, we propose a profit sharing model for PSS partnership. We first analyze customer's utility using Cobb-Douglas utility function and then propose the PSS profit sharing ratio considering functionalities and cost structures based on the combination ratio of PSS. This paper helps firms to develop partnership strategies for PSS.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.38 no.4
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• pp.168-176
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• 2015

Trends of integrating products and services lead to the emergence of Product-Service System (PSS). To implement and embody a PSS solution in new product development, a comprehensive design framework is allowed designers to facilitate the design factors of the PSS in complex business environments. A physical product, containing functionalities for services, is the role of medium between customers and a manufactures. Customers can access those metaphysical interfaces to utilize the product fully or expand its performances. The PSS is aiming to prolong its lifecycle while maintaining its expected quality. Since the quality can be represented as a measure which belongs to user's perspective, guaranteeing certain level of quality can be interpreted to sustaining customer satisfaction. The objective of this paper is to propose a PSS design framework to identify design factors for developing products and services by integrating object-oriented concepts and blueprinting in context of a business ecosystem. The proposed model is developed based on relationship products and services matching with their design factors. The products and the services are then brought together to form a PSS. Functions and processes can be categorized to identify the design factors in different levels using the object-oriented concepts. Objected-oriented concepts provide PSS analysis tools for describing a business process or a workflow process in the PSS. The blueprint is used to identify the relationships between the products functions and the service processes that are offered as part of a job. To demonstrate of the effectiveness of the proposed model, we use a case study involving a smart phone.