Stakeholder-centered approach to PSS development: A case study of servicization of an intelligent LED system

Abstract

Background In a fast growing domestic LED luminary market, both manufacturers and consumers are confronted with problems that threaten its sustainable development: An oversupply of products that aggravates the profitability of manufacturers, high prices and uncertainty of ROI, and no systemic measure to cope with the environmental pressure at the after-use phase. The need for strategical innovation that achieves sustainability and competitiveness is thus supported. Methods This paper introduces a case of developing PSS for an intelligent LED system as a strategy to enhance competitiveness and sustainability of the industry. It suggests an approach to develop a solution based on a comprehensive understanding of stakeholder needs. Based on the primary and secondary data, content analysis was conducted to elicit stakeholder needs. The result led to the identification of design problems and solution generation. Result The ESCO stakeholders have highly diverse needs which are often interdependent and conflicting. A new PSS thus aimed at addressing the identified needs, and simultaneously achieving economic feasibility and environmental sustainability. Its economic feasibility was validated through a field test. Conclusion This paper proposes a stakeholder-centered approach to PSS development with a case of servitizing LED luminaries. It provides a methodology and insights to designers, policy makers, and companies who are interested in supporting or developing new product-service systems with improved environmental sustainability and economic viability.