product service systems

Commercial products are linked to services so they can jointly fulfil specific customers’ needs. That is the idea behind product service systems (PSS). PSS provide manufacturing companies a platform to: “(i) increase differentiation of its complete solution from the competition; (ii) support revenue growth beyond the limitations of a pure-product market; (iii) establish stronger customer loyalty; (iv) create continued service revenue streams; and (v) manage the whole product life cycle, …” (de Senzi Zancul et al. 2012)

Depending on the type of PSS, the end-user can choose if he/she pays only for the benefit of using a product or for also owning the product. Within product-oriented PSS, the end-user is the owner of the product, but additional services or advice are offered by the provider. For example, a yearly maintenance of the heating furnace is offered by the provider. In a use-oriented PSS, the ownership remains with the provider and usage rights are sold to the customer, either exclusively or within a community. The pay-for-use or pay per service contract is a special use-oriented PSS, in which the user only pays for the output of the product according to the use level. For example,  pay-per-lux systems, in which lighting is provided as a service instead of selling lamps.

product service systems
Source: Circular Flanders

Product service systems are integrated within all business sectors, so also within the building ‘industry’. Have a look at the signals of change for which PSS are already available today!

This project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement No 642384. Circular Flanders