A framework for enterprise-driven product service systems design
Year: 2013
Editor: Udo Lindemann, Srinivasan V, Yong Se Kim, Sang Won Lee, John Clarkson, Gaetano Cascini
Author: Kang, Namwoo; Feinberg, Fred M.; Papalambros, Panos Y.
Series: ICED
Institution: University of Michigan, United States of America
Page(s): 297-308
ISBN: 978-1-904670-47-6
ISSN: 2220-4334
Abstract
As products become service platforms, customers purchase both products and their associated services. Service attributes affect product choices, and product choices affect to service demand and profit during the products life cycle. Enterprises offering such product service systems (PSS) must co-design products and services to maximize overall profit. This paper proposes an Enterprise-driven Product Service Systems (EPSS) design framework that integrates models of design, choice, demand, and cost into a profit optimization problem. The EPSS framework is demonstrated on a study of product and service design for tablets, e-books, and cloud services. Optimizations results quantify the trade-offs between profits from product and service dependent upon design decisions and use scenarios.
Keywords: Product service systems, optimal design, profit maximization, design for market systems