Pay per screen: developing Result-oriented PSS in Small and Medium-Sized Enterprises : A case study at a mercury recycling equipment manufacturer

Sammanfattning: Today’s companies are struggling with the competitive environment driven by resource scarcity, technical progress and market demand for increased value and flexibility. For these reasons companies are shifting their focus from selling products to selling need fulfillment. The result-oriented product-service (PSS) is a PSS type that provides value mainly through delivery of services with the premise of the producer taking responsibility over the entire product life cycle. It is highlighted in the literature as a business strategy to generate a high profit and stable the revenue. Despite the new market opportunities related to the provision of PSS, it inherently comes with complexity linked to the extended responsibility. More importantly, very little is mentioned in the PSS literature regarding real case PSS development and how service-oriented PSS contracting impacts Small and Medium-sized Enterprises (SMEs). The objective of this thesis is to examine how result-oriented PSS can create new opportunities for SMEs. It is targeting to explore this topic from a cost and value creation perspective for both the company and customer. To achieve the objective a main research question is stated which answer is given by answering the two sub questions as below. How can a result-oriented product-service system be implemented in small and medium-sized enterprises? 1. What result-oriented PSS solution can be designed for the recycling equipment industry to increase the value for both the manufacturer and the customer? 2. What are the financial implications of a result-oriented PSS? To explore answers for the research questions, a case study inquiry is carried out on MRT (Mercury Recovery Technology) System International AB. It is a small international recycling equipment manufacturer in Karlskrona. A PSS development process resulting in a new concept referred to as “Pay per screen” is developed. The development and analysis of the result-oriented PSS shows that it is more profitable for the company to offer the proposed Pay per screen concept compared to the current product- oriented business. Even the customer has proven to be profitable while providing several advantages such as avoid being responsible for initial investment and maintenance costs.