Short answer
Design PSS business models with a clear understanding of how they simultaneously enhance customer value, ensure economic viability, and contribute to resource decoupling, and be prepared to tailor these models to specific market niches.
- Field
- Sustainability
- Source
- Sustainability (2019)
- Method
- Action Research
- Evidence
- Strong effect
For Product-Service Systems (PSS) to effectively enable circular economy business models, they must concurrently deliver enhanced customer value, support economic growth, and achieve resource decoupling. This sustainability research insight is drawn from a 2019 study published in Sustainability. Using Action research, researchers explored how this design variable affects real-world outcomes. The key design takeaway: Design PSS business models with a clear understanding of how they simultaneously enhance customer value, ensure economic viability, and contribute to resource decoupling, and be prepared to tailor these models to specific market niches.
Product-Service Systems require simultaneous customer value, economic growth, and resource decoupling for true circularity.
For Product-Service Systems (PSS) to effectively enable circular economy business models, they must concurrently deliver enhanced customer value, support economic growth, and achieve resource decoupling.
Sustainability · 2019
Key Findings
- 01PSS business models for circular economy must simultaneously fulfill conditions for superior customer value, economic growth, and resource decoupling to contribute to circular economy.
- 02PSS business models for circular economy are often niche solutions, catering to specific needs, customer segments, product types, or geographical locations.
Application
Design takeaway
Design PSS business models with a clear understanding of how they simultaneously enhance customer value, ensure economic viability, and contribute to resource decoupling, and be prepared to tailor these models to specific market niches.
How to apply
Before launching a PSS, use a framework that assesses customer value propositions, revenue streams, cost structures, and resource efficiency metrics together. Identify target customer segments and product characteristics that best align with the PSS's circularity potential.
Project actions
- 01When developing a PSS concept, explicitly map out how it benefits the customer, how it makes money, and how it reduces waste or resource use.
- 02Consider if your PSS is designed for a broad market or if it targets a specific group or need.
Method & Evidence
Variables
Strengths & Limitations
Strengths
- +Practical application through action research in real companies.
- +Development of a framework for assessing PSS circularity potential.
Limitations
It can be challenging to accurately quantify 'customer value' or 'resource decoupling potential' without extensive market research or lifecycle assessment.
Reliability & validity
The use of action research in real companies lends ecological validity. However, the limited number of case studies and the subjective nature of assessing 'value' and 'decoupling' might affect generalizability and internal validity.
Think critically
If PSS for circularity are often niche solutions, what are the implications for scaling these models to achieve widespread environmental impact?
Design Principles
"Holistic PSS design for circularity requires the simultaneous optimization of customer value, economic performance, and resource decoupling."
This insight highlights that simply offering a service alongside a product is insufficient for achieving circularity. Designers and strategists must holistically consider the interplay between customer benefits, financial viability, and environmental impact when configuring PSS business models.
What This Means for Your Design
To make a product-service system truly good for the environment (circular), it needs to be good for customers, good for business, and good for the planet all at the same time. It often works best for specific types of products or customers.
How to use in your project
- 1.Use the findings to justify the design choices for your PSS, explaining how your concept meets the criteria for customer value, economic viability, and resource decoupling.
- 2.Discuss how your PSS might be a niche solution and why that is a strength.
Add to My Project
Quick Cite
Paragraph starter
The research by Pieroni, McAloone, and Pigosso (2019) suggests that for Product-Service Systems (PSS) to be effective enablers of the circular economy, their configuration must simultaneously address superior customer value, economic growth, and resource decoupling. Furthermore, these PSS business models often function best as niche solutions, tailored to specific product types, customer segments, or geographical contexts. This implies that a successful PSS design must integrate these three dimensions holistically and consider targeted market application.
Source
Sustainability
Configuring New Business Models for Circular Economy through Product–Service Systems
journal · 2019
View sourceQuestions About This Research
- What does the research say about product-service systems require simultaneous customer value, economic growth, and resource decoupling for true circularity?
- Design PSS business models with a clear understanding of how they simultaneously enhance customer value, ensure economic viability, and contribute to resource decoupling, and be prepared to tailor these models to specific market niches. Evidence: Sustainability (2019).
- Why does "Product-Service Systems require simultaneous customer value, economic growth, and resource decoupling for true circularity." matter for design?
- This insight highlights that simply offering a service alongside a product is insufficient for achieving circularity. Designers and strategists must holistically consider the interplay between customer benefits, financial viability, and environmental impact when configuring PSS business models.
- How can designers apply this research?
- Design PSS business models with a clear understanding of how they simultaneously enhance customer value, ensure economic viability, and contribute to resource decoupling, and be prepared to tailor these models to specific market niches.
- What were the main findings?
- PSS business models for circular economy must simultaneously fulfill conditions for superior customer value, economic growth, and resource decoupling to contribute to circular economy.. PSS business models for circular economy are often niche solutions, catering to specific needs, customer segments, product types, or geographical locations.
- What research method was used?
- Action Research.
- How strong is the evidence?
- Evidence strength is rated Strong effect, based on a 2019 journal from Sustainability.
- What should I do differently in my next project?
- Before launching a PSS, use a framework that assesses customer value propositions, revenue streams, cost structures, and resource efficiency metrics together. Identify target customer segments and product characteristics that best align with the PSS's circularity potential.
- What are the limitations?
- The study was conducted in two specific companies within the furniture sector, which may limit the generalizability of findings to other industries or company sizes. The 'niche' nature of successful PSS models suggests that broad market adoption might face challenges.