The dynamics of Industrial Product Service Systems (IPS2) – using the Net Present Value Approach and Real Options Approach to improve life cycle management
✍ Scribed by Mario Rese; Markus Karger; Wolf-Christian Strotmann
- Publisher
- Elsevier
- Year
- 2009
- Tongue
- English
- Weight
- 337 KB
- Volume
- 1
- Category
- Article
- ISSN
- 1755-5817
No coin nor oath required. For personal study only.
✦ Synopsis
Companies from industrialized nations have faced with the threat of competition from low-cost countries. We suggest Industrial Product Service Systems (IPS 2 ) as a possible answer. Our article has two main aims. We establish a framework for designing an initial IPS 2 which meets current customer and market requirements. Building on this, we broaden our focus to include requirements induced by subsequent changes. We propose a combination of the Net Present Value Approach and the Real Options Approach as a means of determining the quantified value of an IPS 2 for an individual customer over its life cycle.