Business process support for IoT based product-service systems (PSS)

Purpose – The purpose of this paper is to propose a method for adopting an Internet of Things (IoT) enabled product-service system (PSS) considering business model and product enhancements. The method focusses on business process implications of IoT. The paper also discusses a real application of the proposed method to the machinery industry. Design/methodology/approach – Considering the IoT technologies available, failure mode and effects analysis is applied to identify what should be monitored in the product to minimize potential product failures. In parallel, in order to assist the company in deciding which PSS strategy to be followed, a Configurator of PSS proposals is applied. The results are derived to define the IoT architecture and the business process design supported by the selected IoT technologies. Findings – The main findings include the proposed IoT-enabled PSS adoption method, illustrated by the description of the application and its assessment. In addition, the identification of key process areas that are impacted by IoT is offered, namely: remote machine setup; corrective and predictive maintenance; material supply; product pricing; and information reporting. Research limitations/implications – The application of the method proposed is limited to one company. Future work includes extending the application of the method to other units of analysis. Practical implications – The method proposed can be considered by companies willing to increase product-service revenues based on IoT technologies. Originality/value – The IoT-enabled PSS adoption method is an approach grounded on the intersection theories of PSSs and the more technology-oriented IoT developments.