Technical product-service systems: some implications for the machine tool industry

Purpose - The purpose of this paper is to develop a technical product-service systems (t-PSS) for the BoX® (Big OptiX) ultra precision free-form grinding machine which has been designed and developed at Cranfield University. BoX is a new machine concept where advanced mass production and ultra precision technologies are combined.Design methodology approach - This work utilises the machine as a demonstration case study to investigate t-PSS for the machine tool providers. It develops three t-PSS business models for the BoX machine: product-, use- and result-oriented.Findings - The paper discusses the stakeholders' responsibilities, cash flows, application sectors, and consequently benefits and shortcomings of the three business approaches.Practical implications - The enhancement of competition from low cost economies, vibrant market requirements and increasing customer demands cannot be addressed merely by the latest achievements in technology. As a response to this, the modern manufacturing industry is shifting its orientation towards t-PSS. t-PSS is an integrated product and service offering that delivers value in use.Originality value - The novelty of this paper lies in identifying and analysing the key implications of t-PSS on machine tool industry using the BoX machine as an example case study.