Design and Engineering of Dynamic Business Models for Industrial Product-Service Systems

Abstract

In contrast to current product-oriented solutions, Industrial Product-Service Systems (IPS²) involve the integrated development of products and services, thereby guaranteeing high customer value. As a consequence, an IPS² business model characteristically delivers value in a long-term customer relationship. To date, comprehensive research on the design and engineering of dynamic IPS² business models has not been conducted, which has resulted in a lack of modeling and simulation methods that depict their dynamic behavior over the entire IPS² life cycle. In order to fill this research gap, this paper focuses on an integrated business model design and engineering approach with System Dynamics.