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Product Service Systems

Services have become increasingly important in western economies. This means that the economy is de-materializing: more money is made with less material products. At first glance, this looks environmentally friendly.

For the Dutch ministry of environment, PRé Consultants and 2 partners investigated whether the promotion of so called Product Service Systems is indeed beneficial for both economy and ecology.

Free download of the PSS reports

 

 

 

 

 

Why Product Service Systems?

Product Service Systems can prove beneficial to the environment in combination with creating new business.

Key factors of success are similar in many cases:

  • Creating value for clients, by adding quality, customization and comfort.
  • Creating new functions, or making smart or unique combinations of functions.
  • Decreasing the threshold of an investment by sharing, leasing, or hiring.
  • Decreasing environmental load. Often this will bring additional and perceived eco-benefits.
Moreover, the study shows a potential to unlink environmental pressure from economical growth.

This means that knowledge of dematerialized Product Service System enables:

  • Governments to develop policy on sustainable production and consumption patterns.
  • Companies to find strategic options for business growth, innovation and diversification.

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Ten cases analyzed

The project has resulted in ten case studies. Three were quantitatively worked out in terms of economic and ecological characteristics.

To analyze these cases, a new graphical presentation was used. Each case is characterized by four axes: an ecological axis, an economic one, an identity/strategy axis and a client acceptance axis.

Example of a four axis analysis using the environmental, economic, identity and customer acceptance axis to judge cases.

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Unlinking economy and ecology

The ratio economic added value per unit of environmental load can be plotted graphically as what we call an E2 vector.

The E2 vector enables benchmarking between a company's departments, between companies, between economic sectors and between different product service mixes.

Example of an E2 vector for the lifecycle of a car. The vector represents the ratio between environmental load and economic value. Product Service Systems that create more value at a lower environmental load contribute to unlinking economy and ecology .

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The reports

Apart from case descriptions, the project has resulted in definitions, a database with examples, and policy recommendations for governments and companies.

The report was written by:

  • Mr Cees van Halen; presently working for PriceWaterhouseCoopers
  • Mr Harry te Riele; Storrm C.S. Consultancy
  • Mr Mark Goedkoop; PRé Consultants

The reports can freely be downloaded.

This project was commissioned by the Dutch Ministry of Economic Affairs and the Ministry of Housing, Spatial Planning and the Environment.

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Last update 6 September 2009 ·
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