Jihwan Lee

Business Model Design Methodology for Innovative Product-Service Systems: A Strategic and Structured Approach

The business model is receiving considerable attention these days as companies achieve great success, or suffer damaging failure, by changing their way of doing business. Most of the literature on this subject has looked to establish the taxonomy, architecture, or constituent elements of business models, with the aim of isolating their key characteristics. However, only a few have dealt with supportive methodologies for business model design. The present study aims to provide a structured methodology for business model design. At the core of the methodology lies a design template with which a current business model can be analyzed or reinvented in a systematic manner. The template consists of a set of predefined building blocks that describes a business models strategic patterns and/or constituent elements, which building blocks were collected and verified through an investigation into more than one hundred real-world business model cases. In addition to the design template, a framework for new business model design also is provided. With the help of the representational schemes and procedures therein defined, one can design a business model in a more structured way. The framework is illustrated by means of a case study of an apparel company that set out to commercialize its newly designed product-service system concept.

Design freeze sequencing using Bayesian network framework

Purpose – Change propagation is the major source of schedule delays and cost overruns in design projects. One way to mitigate the risk of change propagation is to impose a design freeze on components at some point prior to completion of the process. The purpose of this paper is to propose a model-driven approach to optimal freeze sequence identification based on change propagation risk. Design/methodology/approach – A dynamic Bayesian network was used to represent the change propagation process within a system. According to the model, when a freeze decision is made with respect to a component, a probabilistic inference algorithm within the Bayesian network updates the uncertain state of each component. Based on this mechanism, a set of algorithm was developed to derive optimal freeze sequence. Findings – The authors derived the optimal freeze sequence of a helicopter design project from real product development process. The experimental result showed that our proposed method can significantly improve the ...

Product-Service Systems Design With Business Model Strategy Integrated: A Case Study of Urban Umbrella Rental Service System

The value creation paradigm in industry has recently been shifting toward value creation through Product-Service Systems (PSS) where product and service elements are tightly integrated as systems to provide functional fulfillment. A successful PSS should satisfy economical, ecological and experience values. A systematic design method for PSS has been developed where activities of stakeholders are designed to support those values reflecting diverse context elements. Also business model aspects of PSS are considered using the category of the business model canvas together with strategies and protocols obtained from various real world cases. To illustrate the PSS design method with business model strategy integrated, a case of urban umbrella rental service system is presented.Copyright

Association of Product-Service Systems design concepts with business models and their evaluation method

To provide personalized values centered around products, Product-Service Systems (PSS) are designed combining product elements and service elements in a tightly integrated manner. Through PSSs, manufacturing companies will achieve business innovation to strengthen their competitiveness in highly challenging market situations and to provide diversified values to consumers and customers. To design PSSs, new methods for designing activities of service receivers and providers and for organizing those activities in meaningful groups for effective management of service designing and service provision would be needed. Moreover those new PSS concepts should be compared and evaluated in the design phase. This paper proposes a method to associate PSS design concepts with their business models by relating service units with business aspect strategies and to evaluate business models using the system dynamics method. The method is illustrated using a PSS design case.