Business model generation for a product-service system : A case study

Many companies are seeking ways of integrating products and services in their offerings to become more competitive. This is a transition towards a Product-Service System, where the product no longer necessarily becomes the only central part. This thesis aims to study how a company can design its Business Model to exploit the potential of a Product-Service System. This purpose has been answered through an understanding of theories in the field of Product-Service Systems and Business Models. The data collection was done through two case studies involving qualitative semi-structured interviews with business professionals with insights in a company’s Business Model and a Product-Service System. The main case company for this thesis is BAE Systems Hägglunds, while BAE Systems Global Combat Systems and Koneo were investigated in order find further empirical evidence in relation to the thesis purpose. In order to facilitate the empirical research, a framework for data collection and analysis was developed. Previous research within the field constituted the base and it was therefore used in a deductive approach to facilitate data collection and analysis. The most important findings in this study is that the Business Model needs to handle a more comprehensive value offering since companies tend to add additional value, while taking over customers activities when adopting a Product-Service System. This demands closer collaboration with customers and PSS providers, and the Business Model will have to focus on relationships in a wider extent. The ability to be profitable is a main concern and companies need to consider costs throughout the entire lifecycle, focus on proactive management, as well as considering risk-transfer in order to decrease the risks incorporated in the value proposition. This thesis determines that the change to a Product-Service System will have large organizational implications and thus affect many factors in a company’s Business Model.Validerat; 20120620 (anonymous