Organisations have been approaching servitisation in an unstructured fashion. This is partially because there is insufficient understanding of the different types of Product-Service offerings. Therefore, a more detailed understanding of Product-Service types might advance the collective knowledge and assist organisations that are considering a servitisation strategy. Current models discuss specific aspects on the basis of few (or sometimes single) dimensions.
In this paper, we develop a comprehensive model for classifying traditional and green Product- Service offerings, thus combining business and green offerings in a single model. We describe the model building process and its practical application in a case study. The model reveals the various traditional and green options available to companies and identifies how to compete between services; it allows servitisation positions to be identified such that a company may track its journey over time.Finally it fosters the introduction of innovative Product-Service Systems as promising business models to address environmental and social challenges.
This is an strategic tool that in a simple map shows the wide spectrum of service types. Organisations generally use it to map their current services offerings and plan future ones – e.g. the strategic move to the next services. The classification illustrates how other organisations (including competitors) are competing with different services in different markets.