Product Migration Strategies to Product-Service Systems Based on Korean Industrial Cases

Research Area: Volume 1 Issue 5, Sept. 2012 Year: 2012
Type of Publication: Article Keywords: Industrial practices, product service integration, Product-Service System, PSS development strategy
  • Hyun Chan Lee
Journal: IJEIR Volume: 1
Number: 5 Pages: 440-444
Month: Sept.
ISSN: 2277-5668
Product-service system (PSS) is a system of products, service, supporting networks and infrastructure that is designed to be competitive. The concept of PSS is rather new and currently many companies and governmental institute are eager to implement the PSSs as a new business model. In this paper, we propose a three-dimensional model to classify PSS based on three axes. The three axes consist of selling product type, product usage type, and sustainability. The selling product type is classified as physical product, physical product and added services, and product-service system. The product usages type is classified as product-oriented, use-oriented, and result-oriented usage. The sustainability is classified as economy, society and environment. The 3D model is applied to the surveyed Korean industrial practices to identify some typical migration paths from physical product to PSS. Three typical migration paths are identified and the paths are used to suggest Sustainable PSS(SPSS) development strategies. Three identified paths are value-extended SPSS, positioning-extended SPSS, and field-extended SPSS.

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