Benefits of a Product Service System Approach for Long-life Products: The Case of Light Tubes

Document type: Conference Papers
Peer reviewed: Yes
Full text:
Author(s): Anthony Thompson, Henrik Ny, Pia Lindahl, Göran Broman, Mikael Severinsson
Title: Benefits of a Product Service System Approach for Long-life Products: The Case of Light Tubes
Conference name: 2nd CIRP International Conference on Industrial Product Service Systems (IPS2)
Year: 2010
ISBN: 9789173933810
Publisher: Linköping University
City: Linköping
Organization: Blekinge Institute of Technology
Department: School of Engineering - Dept. of Mechanical Engineering (Sektionen för ingenjörsvetenskap - avd. för maskinteknik)
School of Engineering S- 371 79 Karlskrona
+46 455 38 50 00
http://www.bth.se/ing/
Authors e-mail: ath@bth.se, hny@bth.se, phl@bth.se, gbr@bth.se
Language: English
Abstract: Products designed for long-life often have significant potential for better sustainability performance than standard products due to less material and energy usage for a given service provided, which usually also results in a lower total cost. These benefits are not always obvious or appealing to customers, who often focus on price. Long-life products are therefore at an inherent disadvantage: due to lower volume of sales that results from the products’ longer-life, the margins (price) often need to be higher. In this paper, we demonstrate that when the revenue base is shifted to be the service of light (instead of the sales of light tubes), there is an opportunity for a “win-win-win” for the light user, the long-life light provider and society. Through a product-service system approach, resulting in a well-communicated total offer, the full array of benefits becomes clearer to the customer, including that they avoid the high initial cost.
Subject: Mechanical Engineering\General
Sustainability\General
Technoscience Studies\Innovation System and Development
Keywords: sustainability performance, long-life products, product-service system, value chain, modeling
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