Lecture 03 (3.1, 3.2) Flashcards
What is: SUSTAINABLE PRODUCT-SERVICE SYSTEM (S.PSS)?
(Definition)
An offer model providing an integrated mix of products and services that are together able to fulfill a particular customer demand (to deliver a “unit of satisfaction”), based on innovative interactions between the stakeholders of the value production system (satisfaction system), where the ownership of the product/s and/or the life cycle services costs/responsibilities remain by the provider/s, so that the same provider/s, for economic interest, continuously seek/s environmentally and/or socio-ethically beneficial new solutions
S.PSS MAIN CHARACTERISTICS
(List of 3)
1) ROOTED IN A SATISFACTION-BASED ECONOMIC MODEL
each offer is developed/designed and delivered in relation to a particular customer satisfaction (“unit of satisfaction”)
2) STAKEHOLDER CONFIGURATIONS-BASED INNOVATION
radical innovations, not so much as technological ones, as new interactions/partnerships between the stakeholders of a particular value production chain (satisfaction system)
3) INTRINSIC WIN-WIN SUSTAINABILITY POTENTIAL
innovation in which is the companies/organisations’ economic and competitive interest that may leads to environmental and socioethical benefits
What are the 3 SUSTAINABLE PRODUCT-SERVICE SYSTEMS: TYPES? (List of 3)
1) PRODUCT-ORIENTED S.PSS:
Adding value to the product life cycle.
2) USE-ORIENTED S.PSS:
Enabling platforms for customers.
3) RESULTS-ORIENTED S.PSS:
Providing final results for customers
What is the definition of PRODUCT-ORIENTED S.PSS (Type 1 of 3)? (Definition)
A company/organization provides all-inclusive life cycle services – installation, maintenance, repair, upgrading, substitution, and product take back - to guarantee the life cycle performance of the product/semi-finished product (sold to the customer)
Customer responsibility is reduced in the use and/or disposal of the product/semi-finished product (owned by the customer) since they pay for all-inclusive life cycle services of the product
What is the definition of USE-ORIENTED S.PSS (Type 2 of 3)? (Definition)
A company/organization provides access to products, tools, and opportunities enabling customers to get their satisfaction.
the customer does not own the product but operates on them to obtain a specific need (and pays only for the use of the product)
What is the definition of RESULT-ORIENTED S.PSS (Type 3 of 3)? (Definition)
A company offers a customized mix of services, instead of products, in order to provide a specific final result to the customer.
The customer does not own the products and does not operate on them to obtain the final satisfaction (the customer pays the company to provide the agreed results)
Give an example of S.PSS Type 1 (Product Oriented) (Example)
Kluber
Instead of only selling you the motor lubricant, now they offer lubricant services, meaning that they focus on achieving efficiency for the customer
Give an example of S.PSS Type 2 (Use Oriented) (Example)
Riversimple
Provide a car with all maintainance services and user only pays for use.
Give an example of S.PSS Type 3 (Result Oriented) (Example)
Phillips Pay-per-Lux.
Phillips provides both products and services for a whole office upon an agreed amount of area illuminated. The client doesn’t buy lightbulbs nor replace them.
Why is S.PSS good for both the environment and economic interests of the company? (List of 6)
1.- DESIGN for PRODUCTS LIFESPAN EXTENSION (The LONGER the product lasts, the LOWER the costs of pre-production, production, distribution, and disposal)
SPSS TYPE 1 - Product
2.- DESIGN for INTENSELY USED PRODUCTS
(The MORE intensely the products (or product’s components) are used, the HIGHER the profit). SPSS TYPE 2 - Use
3.- DESIGN for MINIMIZING RESOURCE CONSUMPTION of the PRODUCT IN THE USE PHASE
(The HIGHER the product’s resource efficiency in the use phase, the HIGHER the profit (payment minus the costs of resources)) PSSD TYPE 3 - Result
4.- DESIGN for PASSIVE/RENEWABLE RESOURCES USE
(The HIGHER use of passive/renewable sources of energy
The HIGHER the profit (payment - the costs of non-renewable sources of energy))
5.- DESIGN for MATERIAL LIFE EXTENSION (RECYCLING, ENERGY RECOVERY or COMPOSTING)
(The MORE the materials are recycled and/or the energy is recovered
The MORE costs of landfilling and purchase of new primary material, energy, or compost are avoided)
6.- DESIGN for TOXICITY/HARM MINIMIZATION
(The LOWER the potential toxic/harmful emissions during use and/or at the end-of-life
The MORE costs of both toxic/harmful treatments in use and/or at the end-of-life are avoided)
When an S.PSS is eco-efficient?
when the product owner and/or the Life Cycle Service Costs remain by the producers who are selling a unit of satisfaction rather than only the product
Why S.PSS may foster SOCIOETHICAL benefits, being accessible and preservable over time even for low-income contexts?
(List of 6)
1.- PRODUCTS BECOME ACCESSIBLE TO LOW AND MIDDLE-INCOME PEOPLE
(improve quality of life of low and middle-income people)
2.-AVOIDS INTERRUPTION OF PRODUCT USE
(quality of life sustainable in time)
3.- WORKING EQUIPMENT BECOMES ACCESSIBLE TO LOW AND MIDDLE-INCOME ENTREPRENEURS
(facilitating new business start-ups in low and middle-income contexts)
4.- AVOID INTERRUPTION OF WORKING EQUIPMENT USE
(entrepreneurial activities preservable over time)
5.- OPEN NEW MARKET OPPORTUNITIES FOR LOCAL ENTREPRENEURS IN LOW-MIDDLE-INCOME CONTEXTS
(local economies empowerment)
6.- IMPROVE EMPLOYMENT AND CAPACITY-BUILDING OPPORTUNITIES IN LOW-MIDDLE-INCOME CONTEXTS
(local competencies and skills improvements)
When a S.PSS favor social inclusion?
(Explanation)
When the product OWNERSHIP and the LIFE CYCLE SERVICES COSTS remain by the producer who is selling a UNIT of SATISFACTION rather than only the product
What are the 2 S.PSS economic and competitive benefits?
(List of 2)
1.- Offering service along all its life cycle > they establish longer and stronger relationships with customers, i.e. improving customer fidelity
2.- Being different offer than traditional product sale which are nowadays in saturated market >
they can open up new business opportunities, i.e. improve strategic positioning
What are S.PSS potential barriers?
(List of 4)
1.- for customers/users (lack of knowledge and resistance to change)
2.- for companies/organizations (change business models, economic uncertainty)
3.- for governments (policies and regulations)
4.- for designers/developers (Old designers don’t know shit)
