Product Service Systems for a Circular Economy
As a consequence of the circular economy principle to ensure that business models are focused on profitable service models rather than on selling products, the interest in Product Service System thinking is gaining momentum. In January 2017, the Ellen MacArthur Foundation published its "Circular Design Guide" in which ample attention is given to product service systems such as the 'Pay per lux' scheme developed by Philips.
This website comprises a well-elaborated methodology to assist companies in moving from linear, product volume based business models to circular, service based models that ensure sustainable, long-term revenue generation while reducing or even eliminating negative impacts for the environment.
Introduction to MePSS
Successful PSS innovation asks for a strategy that focuses on designing and selling an interconnected system of products and services. MEPSS (Methodology for PSS) helps you to think 'outside the box' and actively use visualisation, analysis and stakeholder management in your design process.
The MEPSS innovation methodology and tools assist your organisation in creating new product-service offerings. All innovative organisations - regardless of their size and market sector, can use the MEPSS methodology. Supporting your use of this webtool we recommend consulting the MEPSS handbook that we published to assist you in PSS-development.
The MEPSS project has develop and bring together methodologies in various fields of expertise that are needed to cover the various aspects to take into account developing, implementing and monitoring product service systems. The MEPSS phase model supports your decision making - bringing the right PSS ideas to commercialization - and thus can open up huge new market opportunities.
Dominant fields of expertise that were developed in MEPSS, include:
- Design and implementation related aspects of PSS;
- Assessment of the impacts of PSS innovations on the dimensions People, Planet, Profit (e.g. through Life Cycle Assessment (LCA) and Life Cycle Costing (LCC) or new approaches);
- Succes and failure factors in the development and implementation of PSS.
Product-service systems theory brings companies to a new strategic level and provides new industrial perspectives. It opens new approaches on value creation, social context and industrialisation visions - as is reflected in the definitions of PSS in the textbox. The main point is that PSS involve a switch in the product/service mix, moving from a resource-based production system to a knowledge-based system in which all commercial activity seeks to fulfil clients' needs.
PSS are beneficial because fulfilling the needs of clients in more intelligent and efficient ways makes good business sense. They allow for complete rethinking and redesign of current processes, and often imply fundamental changes at a system level. Developing a new mindset will enable a company to rethink the value creation mechanisms it deploys for customers.
Working with PSS concepts results into learning organisations that enlarge creative thinking, and therefore the possibilities for finding a variety of new (and potentially more interesting) market propositions.