Many clients are not interested in the physical product itself, but rather in how the product is used. These clients do not wish to worry about installing, maintaining or disposing of the product – they are only interested in the functionality of the product when in use.

Product/service systems (PSS) is an innovation strategy, which integrates products and services in a system with ongoing focus on the utility value of products in relation to the client’s activities. The idea behind is that the client only has to pay for using the product when the need arises, and that the status of the physical product can change; in some cases the product is owned by the company throughout its life. In this way, the company is able to support their clients’ activities for a long period of time and improve the products by prolonging their service life. By doing this, PSS also represents a credible and attainable approach to creating sustainable business.

PSS offers new opportunities to companies:

• Competition which is no longer based only on price, time and technical quality, but on the parameters that matter the most to the client
• Responsibility for the physical product is a guarantee to the company (and authorities) that the product is used, maintained and disposed of in an optimal fashion throughout its service life
• Insight into client activities, which allows for a systematic collection of knowledge for the development of new products and services
• Ownership of the physical products often remains with the company throughout the product’s service life, enabling natural resources to be rationalised through recycling, upgrading and renewal of products in a closed system
• Supervision and control of products throughout their service life offers good conditions for meeting environmental standards (e.g. the WEEE directive, the ELV directive etc.).

In PSS, focus shifts in the product development process from trying to sell as many products as possible, to developing products and services that meet the client’s specific needs.

IPU offers consultancy assistance to companies and organisations on how to develop PSS concepts that show how to create a sustainable business based on existing competences and products. We focus on the product’s basic function and how it affects the clients’ activities, and we develop ideas for how to combine products and services so that they best support these activities. Also, IPU is able to assess these concepts from technical, commercial and environmental points of view.   

For more information on EU directives:

WEEE (Waste of Electric and Electronic Equipment)

ELV(End-of-Life Vehicles)