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AN EVALUATION METHOD FOR BUSINESS MODELS IN PRODUCT-SERVICE SYSTEMS DESIGN

Published online by Cambridge University Press:  27 July 2021

Sanghyun Oh ,
Yoo S. Hong ,
Jihwan Lee  and
Yong Se Kim
Sanghyun Oh*
Affiliation:
Department of Industrial Engineering and Institute for Industrial Systems Innovation, Seoul National University
Yoo S. Hong
Affiliation:
Department of Industrial Engineering and Institute for Industrial Systems Innovation, Seoul National University
Jihwan Lee
Affiliation:
Division of Systems Management and Engineering, Pukyong National University
Yong Se Kim
Affiliation:
Creative Design Institute, Sungkyunkwan University
*
Oh, Sanghyun, Seoul National University, Industrial Engineering, Korea, Republic of (South Korea), [email protected]

Abstract

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To pursue business innovation with PSS, many different PSS concepts are designed and evaluated. Various business models of a PSS design concept are devised and evaluated as well. Evaluation of the economic sustainability of PSS business models is critical. This paper presents a systematic method to evaluate the economic sustainability of PSS business models using a system dynamics modelling template. System dynamics modelling task is challenging for practitioners due to the variety of variables comprising business model strategies and their complex interrelationships. To enable the modelling task, a system dynamics modelling template composed of six modules of customer acquisition, channel acquisition, profit creation, resource acquisition, PSS provision, and partnership pattern has been devised. The PSS business model evaluation method has been illustrated using a smart study experience management service system design case to demonstrate the proposed system dynamics modelling template can reflect the case-specific business model which consists of the particular business model strategies.

Keywords

Product-Service Systems (PSS)Business models and considerationsSustainabilitySystem Dynamics
Type
Article
Information
Proceedings of the Design Society , Volume 1: ICED21 , August 2021 , pp. 427 - 436
Creative Commons
Creative Common License - CCCreative Common License - BYCreative Common License - NCCreative Common License - ND
This is an Open Access article, distributed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives licence (http://creativecommons.org/licenses/by-nc-nd/4.0/), which permits non-commercial re-use, distribution, and reproduction in any medium, provided the original work is unaltered and is properly cited. The written permission of Cambridge University Press must be obtained for commercial re-use or in order to create a derivative work.
Copyright
The Author(s), 2021. Published by Cambridge University Press

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