A method for the development of business models for collaborative product service systems in the industrial sector

Purpose: This study aims to introduce a methodology dedicated to developing business models for industrial product service systems (IPSS) in mechanical engineering. It identifies shortcomings in generic methods and emphasizes the importance of a systematic approach. Design/Methodology/Approach: Grounded in a thorough literature review, a careful selection of eleven scientific papers has been identified and explored in a two-step literature review and analysis process. To develop an adjusted reference methodology, we used a multi-phase development model for structural guidance. The emphasis is on a step-by-step and iteratively validated approach to overcome the particular challenges of IPSS in mechanical engineering. Findings: The comprehensive review of literature revealed a gap in research concerning IPSS business model development within mechanical engineering, as none of the reviewed studies fully met all predefined requirements. Additionally, the absence of focus on small and medium-sized enterprises (SMEs) in the literature suggests an important area for further investigation. These findings underscore the need for a more systematic methodology to address this deficiency. Despite these limitations, valuable insights were extracted through careful content analysis, organized into distinct phases, resulting in the development of a systematic reference model. Practical Implications: Project managers and organizations can view this reference model as a strategic roadmap, providing step-by-step guidance for the effective development of IPSS business models in engineering companies. Originality/Value: We contribute a systematic reference methodology for the development of collaborative IPSS business models in mechanical engineering, addressing industry-specific needs and paving the way for future research on incorporating company-specific factors into the business model development process.