Review of PPX Business Models : Adaptability and Feasibility of PPX Models in the Equipment Manufacturing Industry

The overall purpose of this study is to understand how manufacturing companies have so far made use of and can make use of pay-per-x (PPX) business models (BMs) largely in capital product markets, and which mechanisms have helped them in the implementation. Through systematic literature approach this study analysed 14 research publications which exclusively focused on PPX business models. The differences between PPX business model patterns were studied from three perspective, namely criticality of product, need of process knowledge and complexity of the process and its output. We find out that the pay-per-outcome business model, is more prevalent for products which are critical, needs extensive process knowledge and are rather complex. In contrarily, pay-per-output business model is more prevalent when these conditions are not met. However, none of these three factors prevents implementing other type of PPX business model but rather specific business model is more feasible when specific conditions are met. This paper contributes a much more in-depth qualitative view on the patterns and related qualitative arguments for the useful application of PPX models in equipment manufacturing industries and helps to understand the differences between PPX business model types.acceptedVersionPeer reviewe

Capital Equipment Upgrade Strategy in the Context of Servitization

Building on manufacturing servitization and Product-Service Systems (PSS) business models, the midlife equipment upgrade services introduce promising alternative to traditional equipment replacement, which is often capital intensive and time consuming. Midlife upgrade describes the process of improving the performance of and adding new functional capabilities into equipment during their active usage period by embedding technological innovation while satisfying evolving customers’ preferences over time. This strategy, however, has thus far been discussed primarily from a conceptual perspective in literature, and the state of the art lacks empirical evidence regarding the potential and outcome of successful midlife upgrades. Additionally, explorative studies report a low adoption of this strategy and attribute this to the limited strategic awareness and readiness of manufacturing firms. Based on a systematic literature review and multiple case study analysis, this research empirically shows that midlife upgrades can: i) enable capital equipment to continuously provide value and remain relevant to its owner, and ii) effectively postpone replacement despite changes in technology, market conditions, and/or user requirements. Additionally, this research reveals that PSS business models allow equipment manufacturers to establish a business case for the provision of upgrade services. This creates an entirely new revenue stream and provides an alternative route to capitalize newly developed technologies faster while improving customer retention. Furthermore, in order to facilitate manufacturers’ strategic awareness and readiness, first, this study reveals three sets of drivers (i.e., strategic, marketing, and financial) that prompt manufacturers to offer equipment upgrade services. Second, taking the resource-based view as a theoretical foundation, this study identifies unique resources and distinctive capabilities that are key to generate successful upgrade offerings. Finally, this study integrates the identified resources and capabilities into a framework that manifests different stages of industrial service development process, namely, market sensing, development, sales, and delivery

Circular supplier selection in the construction industry: A sustainability perspective for the emerging economies

Supplier selection is one of the most important multi-criteria problems in supply chain management (SCM). Most of the existing decision-making frameworks for selecting suppliers in the construction industry have given priority to criteria such as cost, delivery, and quality. However, due to the current emphasis on achieving sustainability and reducing environmental impact, organizations are increasingly embracing circular economy (CE) principles. In this study, thereby, we proposed an integrated multiple-criteria decision-making (MCDM) framework, which is comprised of a fuzzy analytical hierarchy process (FAHP) and a preference ranking organization method for enrichment of evaluations II (PROMETHEE II) for circular supplier selection in the construction industry from the perspective of countries with emerging economies. In the proposed framework, FAHP was used to first identify the weight of each criterion and sub-criteria, and PROMETHEE II was used to rank the suppliers from best to worst. Results showed that on-time delivery, conformance to specifications, and rejection rate are the top three criteria for supplier selection. Additionally, the top three circular supplier selection criteria included pollution control initiatives, green packaging, and responses toward environmental regulations and standards. The result of this approach has been compared with another MCDM method, namely the weighted aggregated sum product assessment (WASPAS) method, which validated the accuracy and efficiency of the proposed approach. Through the implementation of circular supplier selection, the proposed research is expected to reinforce the circular supply chain model, which can help managers in the construction sector to improve the sustainability of their overall business

2023 World Manufacturing Report: New Business Models for the Manufacturing of the Future

With the mission to spread industrial culture worldwide, the World Manufacturing Foundation organises several activities, among which the World Manufacturing Forum, where this Report is presented and discussed by the speakers from industry, policymakers, and academia. The WMF can be considered a dynamic platform where representatives of countries, organisations, and institutions can hold discussions, share their visions, initiatives and current actions addressing the evolving paradigms of manufacturing.This year’s edition will focus on New Business Models for the Manufacturing of the Future. The Report aims to depict the key trends that are characterising the current economy and thus, indirectly, the manufacturing sector. To address this purpose, a deep analysis has been conducted on both scientific and grey literature involving an international panel of experts in the field.As a result, the identified trends suggested the establishment of six potential business models by manufacturing companies. Through the analysis of the six business models, 10 Key Recommendations have been delineated to suggest how to be competitive in this changed economy while covering the nine building blocks of the business models.The World Manufacturing Foundation, through the World Manufacturing Report, commits to producing high-quality and non-partisan content on relevant themes and issues in manufacturing

2023 World Manufacturing Report: New Business Models for the Manufacturing of the Future

With the mission to spread industrial culture worldwide, the World Manufacturing Foundation organises several activities, among which the World Manufacturing Forum, where this Report is presented and discussed by the speakers from industry, policymakers, and academia. The WMF can be considered a dynamic platform where representatives of countries, organisations, and institutions can hold discussions, share their visions, initiatives and current actions addressing the evolving paradigms of manufacturing.This year’s edition will focus on New Business Models for the Manufacturing of the Future. The Report aims to depict the key trends that are characterising the current economy and thus, indirectly, the manufacturing sector. To address this purpose, a deep analysis has been conducted on both scientific and grey literature involving an international panel of experts in the field.As a result, the identified trends suggested the establishment of six potential business models by manufacturing companies. Through the analysis of the six business models, 10 Key Recommendations have been delineated to suggest how to be competitive in this changed economy while covering the nine building blocks of the business models.The World Manufacturing Foundation, through the World Manufacturing Report, commits to producing high-quality and non-partisan content on relevant themes and issues in manufacturing