Development of an Interaction based Approach for Product Service

System Implementation

An Approach towards PSS Usability

Alexander Richter, Johanna Schoblik, Bernhard Kölmel and Rebecca Bulander

IoS

- Institute of Smart Systems and Services, Pforzheim University, Tiefenbronner Str. 65, Pforzheim, Germany

Keywords: Product Service System, PSS, PSS Life Cycle, Interaction, Implementation, Usability.

Abstract: Product Service Systems (PSS) as a combination of product and service components offer an excellent

opportunity to improve the competitive position of companies on the local and global market. The current

PSS approaches in literature are especially adapted to large companies. In particular, the stakeholders of

small and medium-sized enterprises (SMEs) block these approaches because of lack of usability. Because

PSSs also provide many opportunities for SMEs to individualize their position on the market and to improve

their relationships to their customers there is a need for a PSS framework adapted to the needs of SMEs. To

provide this new concept of PSS to SMEs and also to follow the goals of usability this paper presents an

interaction based approach considering aspects of current PSS frameworks. This approach of using

Interaction Maps qualifies companies to apply all important steps for the implementation of a PSS.

Therefore, all steps and interactions between important roles are documented and visualised in Interaction

Maps. The interaction based approach takes all important stakeholders of the PSS process into account.

1 INTRODUCTION

Produced assets such as a capital intensive special-

purpose machine or a normal passenger car are seen

more and more as commodities. Through

globalization and the usage of new technologies it is

nowadays possible to produce complex and

engineering intensive products, which used to be the

showcases of western industries, at a very low price

and a remarkably similar quality anywhere in the

world. Furthermore, today’s speed of imitation and

copying is enormous and is getting faster. Even the

production quality is not a real argument for the

buyer any more. Hence customers are unlikely to be

attracted with classic arguments such as the quality

or performance of investment goods. The service

orientation of a product-oriented company seems to

be a possible way out of the described dilemma,

which a growing number of "traditional businesses"

face these days. In order to cope with these changes

and challenges, it is not enough just to expand the

company's portfolio to some services. The

adjustment to the concept of service orientation

requires a transformation in the corporate culture,

the leadership, the management and the company's

internal processes right from the beginning. For this

transformation companies are forced to put

themselves into their customer’s position and

therefore become a part of the feedback cycle.

Furthermore, the increasing integration into the

customer's processes not only means a new field of

action for traditional business, but also a tremendous

opportunity to improve the development of new

products. The experiences from the use of its

products can be used to provide customers even

more value out of the existing relationship, which in

turn strengthens the relationship and thereby puts

cost arguments of the global competition clearly into

perspective.

The design and implementation of such a service

approach through Product Service Systems (PSS),

which consists by definition out of a service and a

product component (Tischner, 2002), has already

often been discussed in literature since the late

1990s (Baines and Lightford, 2013). However, this

concept still lacks detailed understandable

procedures for the introduction and the

implementation of a Product Service System to an

average small and medium-sized enterprise (SME)

(Hernández Pardo et al., 2012). Practitioners look

for pragmatic and applicable tools. Therefore, this

132

Richter, A., Schoblik, J., Kölmel, B. and Bulander, R.

Development of an Interaction based Approach for Product Service System Implementation - An Approach Towards PSS Usability.

DOI: 10.5220/0006000901320139

In Proceedings of the 13th International Joint Conference on e-Business and Telecommunications (ICETE 2016) - Volume 2: ICE-B, pages 132-139

ISBN: 978-989-758-196-0

research has the aim to determine the essential

interactions for the preparation, development,

introduction and the operation of such a system.

Interactions are easy to understand for practitioners

who are not familiar with academic approaches.

Furthermore, a literature review in books, scientific

magazines and on the web showed that currently

there are no frameworks in this area which use

interactions (see examples in table 1). Hereby a PSS

framework is defined as a set of actions to build and

implement a PSS in a company.

Table 1: Examples of current PSS approaches.

PSS-

Approach

Description

Aurich et al.

(2008)

Control loop model of life cycle

management of capital intensive PSS:

The authors designed a product life cycle

for PSS from manufacturer and customer

perspective from “organizational design”

to “PSS Realization”.

Lindahl et al.

(2007)

Integrated Product and Service

Engineering:

Lindahl et al. created a development

method with focus on environment-

oriented business models and sustainable

influence of consumption patterns with

phases from “Need & requirement

analysis” to “Take back”.

Spath and

Demuß (2003)

Model for hybrid product development:

The model of the authors aims at the

development of customized products and

services. By means of a requirement

model and requirement management the

different engineering disciplines should

coordinate their activities.

The current PSS approaches which could be

found in literature are complex and quite academic

methods. Therefore, they are especially suitable for

large companies, which in general have a research

and development department as well as the

appropriate staff to work on these methods. In

particular the stakeholders of SMEs block these

approaches (Hsin and Ching-Fang, 2005). An

average SME has a tight organisation, lean

structures and practice-oriented staff. Their

employees do not have time to become acquainted

with these methods. The interaction based approach

should take all stakeholders into account and

facilitate the usage of current PSS frameworks. The

approach is adapted to the structures of SMEs, i. e.

kept simple and understandable. Therefore, it is

especially applicable for SMEs.

Product Service Systems also offer a big

opportunity for SMEs. To provide this new concept

of PSS to SMEs and also to follow the goals of

usability this paper presents a PSS framework

translation tool, which includes all important steps to

get to a PSS approach; therefore, all steps and

interactions between all important roles are

documented and visualised in Interaction Maps. For

this paper usability is defined as: “The extent to

which a product can be used by specified users to

achieve specified goals with effectiveness,

efficiency, and satisfaction in a specified context of

use.” (DIN EN ISO 9241-1, 2002) Although the

definition aims at products this focus could be

extended to Product Service Systems.

The usage of an Interaction Map was necessary,

because the process to implement a PSS is full of

interaction and communication but low in actions on

a higher level. In a deeper level of the framework a

process modelling language, e. g. BPMN 2.0, can be

used to document business processes on a lower

level.

Having formulated the aim and benefit of the

interaction based approach, chapter 2 outlines the

foundations of Product Service Systems. Chapter 3

elaborates how the approach was developed and

provides the main aspects of the approach. The

paper concludes with a summary and an outlook in

chapter 4.

2 PRODUCT SERVICE SYSTEMS

By laying the research focus on interactions and

usability in this paper, the main emphasis was not on

developing new Product Service System frameworks

yet. However, comprehensive literature research on

the subject was conducted and numerous

publications about currently discussed taxonomies,

PSS design frameworks and past as well as current

research projects on this topic were accessed.

To give the reader an overview over the PSS

subject, two definitions and one common

classification of PSSs will be briefly introduced in

the following chapter. Afterwards the “Product-

Service-System Life Cycle” (Aurich and Clement,

2010), which is an interesting and well thought-out

PSS framework, will be presented.

2.1 Definitions

To provide an understanding of the Product Service

System topic two common PSS definitions are listed

below:

“A PSS consists of tangible products and

intangible services, designed and combined so that

Development of an Interaction based Approach for Product Service System Implementation - An Approach Towards PSS Usability

133

they are jointly capable of fulfilling specific

customer needs. Additionally, PSS tries to reach the

goals of sustainable development.” (Brandstotter et

al., 2003)

“Product Service-Systems (PSS) may be defined

as a solution offered for sale that involves both a

product and a service element, to deliver the

required functionality.” (Wong, 2004)

Those two definitions show as others, too, that a

PSS must always consist of a product and a service

component. In addition to this, many common

definitions also focus on a certain customer need or

a certain utility which must be delivered by the

system. Numerous, mainly European, definitions

also include a focus on sustainability as a key part of

PSSs. In this paper the definition of (Wong, 2004) is

used.

2.2 Eight Types of Product Service

Systems

The Dutch researcher Arnold Tukker classified

Product Service Systems into eight types which are

distributed from product-oriented over use-oriented

towards completely result-oriented offerings. The

insights which led to the development of his

taxonomy are based on the results of an European

Union founded research project named SusProNet

(Sustainable Product Development Network)

(Tukker and Tischner, 2006).

The following figure shows the three main and

eight subcategories of a PSS according to Tukker

(2004) and the following sections describe the graph

in detail.

Figure 1: Main and subcategories of PSS (Tukker, 2004).

A Product Service System is always in between a

pure product and a pure service. The PSS has a

material product part and an immaterial service part.

Depending on the composition of the shares, the

PSS can have three main categories: it can be

product-, use- or result-oriented. (Tukker, 2004).

As a product-oriented PSS, it has a high

proportion of product and can either (1) contain a

product-related service component or (2) have a

product-related consulting. Here both types offer

added value for the customer by for example causing

a more efficient use of material and human

resources. (Tukker, 2004)

(3) Product Leasing has tangible value for the

customer, since operating costs and maintenance are

offered and performed by the provider. The provider

usually has to take precautions, as a more careless

usage by the customer can be expected due to the

fact that the customer does not own the product.

(Tukker, 2004)

(4) Product rental and product sharing demands a

general deprivation of property from customers and

therefore only the use of the product by direct need.

Hereby the customer has to invest time and efforts in

order to be able to use the product whenever it is

needed. (Tukker, 2004)

For (5) product pooling the description is almost

the same as for renting and sharing. The main

difference lies in the user group which usually

belongs to a certain circle of persons within an

organization or a community. (Tukker, 2004)

(6) Activity management transfers staff and

material costs from the user to the provider, which

can generate profits through specific expertise and

the efficient reorganization of the outsourced

activity. (Tukker, 2004)

The concept of (7) payment per service unit of

one or more activities provides a perceivable value

for the customer. The position of the provider is

located in the customer’s value chain and is better

for the provider in terms of direct customer contact,

customer processes and customer loyalty. (Tukker,

2004)

The (8) functional result provides the same

outcome as an activity which is carried out by the

customer and thus brings the same benefit. In

principle, the provider can try to offer a solution that

requires a comparatively lower input. (Tukker,

2004)

2.3 Product Service System Life Cycle

As a framework which the research can be based on,

the Product Service System Life Cycle approach of

Aurich and Clement (2010) was chosen. The PSS

Life Cycle describes how to plan and build up a

Product Service System for capital intensive

products.

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Aurich and Clement’s (2010) framework was

analysed to afterwards apply the Interaction Map

tool to the five life cycle phases described. Those are

Organizational Design, PSS Planning, PSS

Development, PSS Configuration and PSS

Realization. Since this framework is a cycle, it starts

with PSS Planning and ends with PSS Realization.

The step of Organizational Design has to be

conducted once for every use case. The following

figure shows the PSS Life Cycle:

Figure 2: PSS Life Cycle (Aurich and Clement, 2010).

2.3.1 Organizational Design

The application of Product Service Systems provides

traditionally oriented companies with special

organizational but also corporate cultural challenges.

In order to put the company on the path of

development of a PSS, a one-time implementation of

an organizational design is necessary. This normally

begins with the decision of the management of

wanting to introduce a PSS. At this time, there is no

existing PSS expertise within the company. The

knowledge must be acquired from outside. This can

be done by means of tendering, headhunters or

business consultants. It is of advantage to be able to

attract an expert who not only has PSS expertise, but

also leadership skills for the implementation of such

a project. In the next step the business processes

must be considered, and business models must be

developed so that the PSS can be aligned to them.

To ensure the acceptance of employees for the

coming changes, they must be extensively trained

and convinced of the benefits of PSS. Organizational

and operational structure changes can be made with

the acceptance of the employees. This is done using

a proposed resolution, which will be presented to the

board. It is also important to ensure that all levels of

management share the new decisions. If some

people are still not on board, they must be trained

and instructed again. After that the implementation

of the organizational design phase can begin on the

team level. (Aurich and Clement, 2010).

2.3.2 PSS Planning

PSS Planning has the aim to define all planning

related activities. Those include tasks like the

definition of the product and its utility and the

definition of the project goals. This phase is

finalized with the PSS development assignment and

the formulation of a PSS development request. The

PSS planning phase gives companies the opportunity

to generate and to rate PSS development projects.

(Aurich and Clement, 2010).

2.3.3 PSS Development Project

The development phase has the aim to develop a

market-ready Product Service System. By building

on the preliminary work of the planning phase, the

development process starts here. An important

requirement is the systematization of the integrated

product and service development. At the end of this

phase, a PSS consisting out of products and services

is developed. The last steps of PSS development are

the creation of market specific offers, documentation

and other formal procedures. (Aurich and Clement,

2010).

2.3.4 PSS Configuration

PSS Configuration aims to offer a customer

individual Product Service System which also meets

the provider’s objectives. Therefore, the technical

configuration of the physical product, the

configuration of suitable and individual customer

centric service products, the generation of different

offer combinations and their evaluation and

selection are necessary. The configuration phase is

essential, because in order to exploit the strengths of

Product Service Systems a custom-fit configuration

is crucial. (Aurich and Clement, 2010).

2.3.5 PSS Realization

Besides from providing the configured PSS and

generating customer utility, a core responsibility of

PSS realization is the retention of a high quality

offer and the ensuring of high-quality standards

throughout the whole PSS Life Cycle. To be able to

guarantee this, a continuous improvement process,

performance measurement indicators and further

improvement and monitoring measures are used.

(Aurich and Clement, 2010).

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2.4 Importance of Usability for a

Theoretical Framework

The common PSS design frameworks are well

reasoned, but quite academic and also often not user

centred. Within the context of the research project

“Use-PSS” many interactions with German SMEs

showed that the companies are interested in new

approaches but have great difficulties to cope with

academic research approaches. These insights could

be acquired during workshops with SMEs and

discussions with participants of public presentations.

This means, that the real life usability and

applicability of these approaches often lacks a

detailed description and guidance for SMEs. This

paper’s research has the aim to combine the existing

academic frameworks with a tool, that helps to

translate the academic research into real life action

and interaction plans for SMEs which cannot afford

a R&D department which brings complex research

results to life.

3 INTERACTION BASED

APPROACH FOR PSS

IMPLEMENTATION

Based on Aurich and Clement’s (2010) Product

Service System Life Cycle framework, this chapter

will introduce an approach to higher PSS-

Framework-Usability. The following concept can be

applied to many other frameworks to provide a

better understanding of the detailed interactions

required for an implementation of a PSS

development framework.

The following figure 3 shows the integration of

the interaction based approach in-between a PSS

framework and the detailed business processes of a

company.

The interaction based approach has the aim to

help translate the often quite abstract and roughly

described frameworks into a detailed business

process model. Therefore, the interaction based

approach is divided into two steps. In the first step

several interaction matrices for each PSS Life Cycle

phase are created. They contain the main process

steps and the required information about interactions

within these steps. In the second step of the

interaction concept the matrices are separated into

various Interaction Maps. Those are created for each

process step within the interaction matrix.

Figure 3: Integration of the interaction based approach in-

between a PSS framework and a company’s detailed

business processes.

3.1 Interaction Description

This part focuses on the interactions within the

company and also in-between the company and the

external partners involved. Interactions concentrate

on the existing roles within a company and their

actions and communication within the Product

Service System Lifecycle. Therefore, the term

“interaction” is defined for the research as follows:

Interactions are based on two or more-directional

relationships between two or more actors, which can

get in contact through synchronous or asynchronous

communication. All processes of a company are

affected by interactions.

To define a scope for the approach and to contain

it, first the procedure of describing the interactions is

elaborated. Furthermore, the single roles within a

company are defined. Due to the fact that this is still

a theoretical approach, it must be mentioned, that

those roles do not fit to every firm.

The subject of interaction description for PSS is

new and could not been found in the literature

review, which was conducted prior to the

development of this concept. Therefore, the

development of the approach started from draft. The

PSS Life Cycle framework (Aurich and Clement,

2010) which was introduced in chapter two provided

a solid base for the interaction concept.

Figure 4 shows the transformation of the PSS

Life Cycle framework down to a single Interaction

Map.

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Figure 4: Transformation from PSS Life Cycle framework

to a single Interaction Map.

In a first step the framework was split into the

five Life Cycle phases (e. g. Planning) which were

divided into many process building blocks (e. g.

Planning Preparation). Afterwards each building

block was converted into an Interaction Matrix.

Each Interaction Matrix consists out of several

process steps (e. g. Define Physical Product Core)

which were separately analysed for their occurring

interaction. Finally, an Interaction Map for each

process step was created.

3.2 Interaction Matrix

The Interaction Matrix analyses each of the process

building blocks and divides them into single process

steps. A Matrix contains the process steps on the x-

axis and the actors on the y-axis. Within the matrix,

methods which can be applied to the steps as well as

internal and external actors and their interaction

status are shown. The status is visualized using the

assigned symbols. Additionally, there is a possibility

to add a short description to each process step at the

bottom of the table.

During the interaction analysis phase the

following interaction states can be assigned:

 Active Actor; Symbol: +

The actor is actively involved in this phase and

indispensable. He/she interacts with other

participants. An active actor is always located in

the inner circle of the Interaction Map.

 Passive Actor; Symbol:

This actor is not directly involved in an

interaction but has a supporting function. He/she

can have an indirect interest in a certain process

part or may have an interest in getting certain

information. This actor only delivers information

for the main interaction process by request.

 Doesn´t play a role; Symbol:

This actor doesn´t have any activity in this phase

and is also not indirectly involved.

 Role is non-existent at this time; Symbol:

The actor in this phase is irrelevant and doesn´t

have any reference concerning the presented

interaction or process part.

Figure 5 shows an extract from the "Planning

Preparation" Interaction Matrix.

Figure 5: Extract from Interaction Matrix "Planning

Preparation".

3.3 Interaction Map

The next step after creating the Interaction Matrix

was a detailed analysis of the single process steps

and their contained interactions. The main aim of the

Interaction Map, which was inspired by Stickdorn

and Schneider’s (2011) “Stakeholder Map”, is to

give the PSS framework user a tool which allows the

presentation and explanation of an implementation

process in easy to understand interactions. The

Interaction Map does not aim to replace established

process modelling languages, it rather gives the

practitioners a tool, which helps to translate a rough

framework through interactions into detailed

business processes. At this point of research, it is

recommended using the maps with a short

explanatory text of a few sentences.

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137

For the purpose of keeping the interactions

within the Interaction Map simple and informative,

the number of symbols used is limited. The

following figure shows the symbols which can be

used for modelling an interaction map.

Table 2: Description of the Interaction Map Symbols.

Symbol Description

Organizational Unit / Role

Synchronous Communication

Asynchronous Communication

Interaction Activity

Message Flow

Assignment

Connector exclusive OR

Connector inclusive OR

Connector AND

The following section explains the components

and symbols of the Interaction Map in detail.

 The inner circle of the Interaction Map contains

the active actors, which are involved in this

phase and are responsible for the interactions.

 The outer circle contains all actors which are not

directly involved in the interaction (Passive

Actor) but can provide information for the inner

circle or get information from the inner circle.

 Actors are the internal and external

organizational units and roles of a company, e. g.

CEO, marketing or supplier.

 The synchronous communication symbol stands

for e. g. telephone call, video conference, live

meeting or chat.

 The asynchronous communication symbol

represents e. g. letter, telefax, email, internal

social media or automatic communication via

database.

 The activity symbol stands for the interaction

between several actors. An interaction activity is

always a synchronous communication and could

be for example a meeting or a workshop.

 Data or information can be transferred via

message flow. It is used for example to

communicate the output of a meeting to actors in

the inner or outer circle.

 An assignment shows the connection between an

organizational unit or role and the interaction

activity.

 In an Interaction Map three different connectors

could be used. The AND signals that several

interactions could be executed in parallel. The

fact that only one out of several interactions

could be executed is shown by the exclusive OR.

The inclusive OR represents the fact that one or

more interactions could be executed.

Figure 6: Interaction Map for the process step "Define

Physical Product Core".

Figure 6 shows the Interaction Map of the first

process step “Define Physical Product Core” of the

“Planning Preparation” Interaction Matrix. It

represents a workshop for defining the physical

product core of a PSS. The organizational units

R&D, Marketing and Sales as well as the PSS-

Specialist are active actors in this process step. The

output of the workshop is asynchronously reported

to passive actors, CEO, Manufacturing and Service.

4 SUMMARY AND OUTLOOK

In this paper the importance of Product Service

Systems as a combination of product and service

components for companies to reach a better

competitive position on the market was pointed out.

The result of a literature review demonstrated that

there are some PSS frameworks but they are not

suitable for SMEs. Therefore, one of the aims of this

paper is to provide an approach to implement PSS in

a company which is suitable for SMEs.

Afterwards the new concept of PSS considering

the requirements of SMEs was introduced.

Therefore, an interaction based approach using

Interaction Maps which qualifies companies to apply

all important steps for the implementation of a PSS

was presented. An Interaction Map documents and

visualises all steps and interactions between

important roles.

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138

The interaction based approach was already

reviewed in an expert discussion of several hours.

Moreover, it will be evaluated through workshops

with employees of selected SMEs. Further on a

complete PSS framework will be developed in the

research project “Use-PSS” for the implementation

of PSS in SMEs. Therefore, the interaction based

approach will be used as one methodology to

document the communication and interaction of

important roles and stakeholders in the

implementation process. Furthermore, this PSS

framework will be evaluated for SMEs while using

some selected SMEs to develop and implement a

concrete PSS idea.

ACKNOWLEDGEMENTS

The Research Project “Use-PSS” is part of the focal

point of support “Middle Class Digital – Strategies

for a Digital Transformation of Business Processes”

of the German Ministry of Economics and Energy

(BMWi). This support campaign was assigned to

push the digitalization of small and medium sized

enterprises and craft businesses.

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