A Value Creation Based Business Model for Customized Product Service System Design

With the raise of the sustainable production concept and intense global industrial competition, companies' pressure on retaining profit becomes heavier. Without devoting to reduce the environment impact, company should identify a competitive business model to stand out from others. As a solution, product-service system (PSS) has been proposed. PSS is a concept which attaches importance to balance economic, environmental, and social aspect by adding service into product to elevate the product value and improve the utilization of products. Although PSS seems to be a win-win idea in both customers and suppliers, companies still struggle to develop customized PSS. The purpose of this study is to provide a process which could guide the companies to evaluate and develop their specialized profitable and sustainable PSS business model based on core competence. Also, two umbrella related cases were applied to prove that this methodology could assist company in developing customized PSS business model. The result would be presented in the value interaction model.