A classification model for product-service offerings

• Existing models for characterising Product-Service offerings include few or sometimes single dimensions.
• A comprehensive model for the classification of traditional and green Product-Service offerings is proposed.
• The model is built on dimensions deriving from theoretical and practical analysis.
• The model support companies in defining their servitisation strategy.
• The model fosters the introduction of innovative Product-Service Systems to address environmental and social challenges.

Organisations have been approaching servitisation in an unstructured fashion. This is partially because there is insufficient understanding of the different types of Product-Service offerings. Therefore, a more detailed understanding of Product-Service types might advance the collective knowledge and assist organisations that are considering a servitisation strategy. Current models discuss specific aspects on the basis of few (or sometimes single) dimensions. In this paper, we develop a comprehensive model for classifying traditional and green Product-Service offerings, thus combining business and green offerings in a single model. We describe the model building process and its practical application in a case study. The model reveals the various traditional and green options available to companies and identifies how to compete between services; it allows servitisation positions to be identified such that a company may track its journey over time. Finally it fosters the introduction of innovative Product-Service Systems as promising business models to address environmental and social challenges.