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New Business for Old Europe – Product-Service Development, Competitiveness and Sustainabilit y

  • 1.  New Business for Old Europe – Product-Service Development, Competitiveness and Sustainabilit y

    Posted 09-19-2006 05:19
    Dear Colleagues,

    We are delighted to announce the publication of:

    NEW BUSINESS FOR OLD EUROPE
    PRODUCT-SERVICE DEVELOPMENT, COMPETITIVENESS AND SUSTAINABILITY
    Edited by Arnold Tukker, TNO, the Netherlands, and Ursula Tischner,
    econcept, Germany
    September 2006
    440pp | 234 x 156 mm
    Hardback: ISBN 1 874719 92 6 | GBP35.00 USD65.00

    *********************************
    To place an order for this title at a discount of 10%, or to view Part
    1 ‘Product-services: the Context’ and Part 7 ‘Need area 1: Base
    Materials’ online,
    please visit the Greenleaf website at:
    http://www.greenleaf-publishing.com/catalogue/suspro.htm

    You can also request a review copy or inspection copy from this site -
    see the home page:
    http://www.greenleaf-publishing.com
    *********************************

    SELLING PRODUCTS used to be the standard way of doing business.
    Traditionally, it is left to the user to transform the purchase of a
    product into something that fulfils effectively a final-user need.
    Today, two streams of research - business management and sustainability
    - normally with very distinct perspectives on the world, have
    surprisingly converged to form a common conclusion: selling products is
    old-fashioned business. Companies should switch their focus to selling
    need fulfilment, satisfaction, or experiences. Or, in other words,
    selling integrated solutions or product-services.

    The business management literature argues that, by focusing on the
    integrated, final-client needs, and delivering integrated solutions
    fulfilling these needs, companies will be able to improve their
    position in the value chain, enhance added value of their offering, and
    improve their innovation potential. In a business world where many
    products are becoming equally well-performing commodities, this
    strategy is one of the ways to avoid a sheer competition on price - a
    type of competition that Europe never can win with emerging and
    low-cost economies such as China. In that sense, product-services can
    mean new business for old Europe.

    The sustainability knowledge stream argues that need-focused solutions
    could be inherently more sustainable than products. Product-services
    could offer the value of use instead of the product itself and decrease
    the environmental load in two ways. First, companies offering the
    service would have all the incentives to make the (product-)system
    efficient, as they get paid by the result. Second, consumers would be
    encouraged to alter their behaviour as they gain insight into all the
    costs involved with the use

    Until today, the connections and interchange between the two research
    streams have been quite limited. The question of whether
    product-services truly are the avenue to a sustainable world is still
    under discussion. This book aims to develop a systematic view on this
    issue.

    The potential of product-services to enhance competitiveness and
    contribute to sustainable development prompted the EU to invest heavily
    in the theme under the EU’s 5th Framework Programme (FP5; 1997–2002). A
    variety of research and development projects in the field were
    supported under the umbrella of the Sustainable Product Development
    Network (SusProNet). These included MEPSS (Methodology Product Service
    Systems); Home Services; HiCS (Highly Customerised Solutions); Prosecco
    (Product-Service Co-design); and Innopse (Innovation Studio and
    exemplary developments for Product-Service).

    The projects were undertaken by a mix of European research institutions
    and companies including Orange, Philips and Nokia. Some of these
    projects focused on developing methods that could help industries
    change their output from a product to a service. Others focused on the
    development of new product-services or solutions (HiCS, Prosecco,
    Innopse), and yet others tried to analyse under which circumstances
    product-services are likely to be implemented and accepted by consumers
    (Home Services). One project focused on dissemination of the concept to
    SMEs (Lean Services). Other projects focused purely on new
    product-service development, such as Brainfridge (an intelligent fridge
    managing its supply chain), ASP-NET (application service providers),
    Protex (intelligent enzymes) and IPSCON (receivers for wireless
    telephones). New Business for Old Europe brings together the key
    outputs from all of these groups to present a state-of-the-art
    collection on product-service development, prospects and implications
    for competitiveness and sustainability.

    The book has a number of aims. First, it attempts to bridge the gap
    between business and sustainability literature to lead to a
    better-founded understanding of the business drivers for embarking on
    product-service development, and its relation with sustainability and
    competitiveness. Second, the book reviews the large amount of studies
    that have developed toolkits, methods and approaches that can support
    marketers, product developers and strategists in business to develop
    product-services, selects the best-practice approaches and analyses any
    gaps.

    Third, the book examines what opportunities there are for
    product-service development in a variety of key areas including base
    materials, information and communication technologies, offices, food
    and households. Each chapter in this section discusses the area,
    developments that will stimulate or hinder the market opportunities for
    product-services, product-service examples, and typical implementation
    challenges for product-services in that area. These chapters serve as a
    quick introduction for companies interested in developing
    product-services in a specific area. Fourth, the book translates all
    the lessons into suggested approaches for product-service development
    by companies. Annexes include a lightweight ‘product-service
    development manual’ and an alphabetical list of useful underlying
    tools.



    TABLE OF CONTENTS

    1 Introduction
    1.1 From products to solutions or product-services
    1.2 SusProNet
    1.3 The goal and structure of this book

    2 Product-services: a specific value proposition
    2.1 Introduction
    2.2 Product-service systems in the sustainability literature
    2.3 Value propositions and their production in the business literature
    2.4 Definitions and terminology used in this book

    3 Product-services and competitiveness
    3.1 Introduction
    3.2 Some perspectives on business strategy
    3.3 Some perspectives on business system dynamics
    3.4 Competitiveness of business systems and the contribution of PSS
    3.5 Discussion per type of PSS
    3.6 Conclusion: factors determining the business case for
    product-services

    4 Product-services and sustainability
    4.1 Introduction
    4.2 Towards an understanding of decoupling
    4.3 The contribution of product-services to sustainability
    4.4 Factors determining sustainability per type of PSS
    4.5 Conclusions

    5 The toolbox for product-service development
    5.1 Introduction
    5.2 Product and service design
    5.3 Methods for product service design
    5.4 Product-service system design tools
    5.5 PSS development experience of SusProNet partner companies
    5.6 Conclusions

    6 Introduction to the need-area chapters
    6.1 Introduction
    6.2 General approach of the need-area work
    6.3 Structure of the need-area chapters

    7 Need area 1: base materials

    8 Need area 2: information and communication technologies

    9 Need area 3: offices

    10 Need area 4: food

    11 Need area 5: households

    12 Towards an integrated approach to PSS design
    12.1 Introduction
    12.2 What are the main differences in PSS versus normal business
    systems?
    12.3 What are the changes needed in business functions?
    12.4 Where differs PSS design from normal business development?
    12.5 What are the main pitfalls to deal with and do current methods
    cover them?
    12.6 What does this all imply for PSS development approaches?

    13 Conclusions
    13.1 Introduction
    13.2 PSS in the market: opportunities and threats
    13.3 PSS and sustainability: the (partially) scattered myth
    13.4 Making the myth work: innovate the system, not just the business
    model
    13.5 In action: an outline for research, dissemination and policy

    Annex 1: practical guideline to PSS development

    Annex 2: tools, alphabetic
    • Backcasting for exploring PSS
    • Benchmarking
    • Benefit planning roadmap: tool from the HiCS project
    • Blueprinting: systematically describing a service
    • Consumption chain analysis for generating new value propositions
    (Macmillan and McGrath)
    • Database(s) of PSS case studies
    • Design plan: tool from the HiCS project
    • Eco-efficiency analysis of a product-service
    • E2 vector, quantitative assessment tool (Goedkoop 1999)
    • Ecodesign: checklist for environmental assessment by econcept
    • Eco-design portfolio: selection tool
    • Ethnographic research
    • Gap analyses for services
    • INES tool (Improving New Services): tool from the Eco-efficient PSS
    project
    • Interaction storyboard: tool from the HiCS project
    • MEPSS toolkit
    • Meta-matrix for services: evaluation/assessment tool
    • Opportunity recognition diagnosis: diagnosis modules of Prosecco
    • Partnership co-ordinating tools: tools from the HiCS project
    • Perceived service quality model, e.g. for car sharing
    • Pragmatic differential tool: selection tool
    • Pre-diagnosis: diagnosis modules of Prosecco
    • Product service life-cycle information management and acquisition
    • Progressive abstraction tool: creativity tool
    • Profit pool (Gadiesh and Gilbert 1998)
    • PSS innovation matrix
    • Qualitative 4-axes expert panel: assessment tool (Goedkoop et al.
    1999)
    • Solution elements brief: tool from the HiCS project
    • Solution scan: tool from the HiCS project
    • Spider diagrams
    • Stakeholders' motivation matrix: tool from the HiCS project
    • Strategy canvas for generating new value propositions (w. Chan Kim
    and Renée Mauborgne)
    • Sustainability guidelines for PSS: tool from the MEPSS project
    • Sustainability evaluation tool: tool from the Sustainable
    Homeservices project
    • Sustainable systems triangle (SST): assessment tool
    • System assessment: tool from the HiCS project
    • System organisation map: tool from the HiCS project
    • Triple-bottom-line innovation audit tool
    • Use cases of PSS: graphical representation: tool adapted by School of
    Architecture and Design, Aalborg University
    • Validation of life-cycle economic benefits of partner-based
    solutions: tool from the HiCS project
    • Value analysis/value engineering
    • VIP approach (Vision in Product Development): scenario method
    References

    *********************************
    To place an order for this title at a discount of 10%, or to view Part
    1 ‘Product-services: the Context’ and Part 7 ‘Need area 1: Base
    Materials’ online,
    please visit the Greenleaf website at:
    http://www.greenleaf-publishing.com/catalogue/suspro.htm

    You can also request a review copy or inspection copy from this site -
    see the home page:
    http://www.greenleaf-publishing.com
    *********************************
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