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 boxw (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.