Browsing by Author "Steven, M."

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    Profitability of Industrial Product Service Systems (IPS²) – Estimating Price Floor and Price Ceiling of Innovative Problem Solutions
    (Cranfield University Press, 2009-04-01) Steven, M.; Rese, M.; Soth, T.; Strotmann, W.-C.; Karger, M.; Rajkumar Roy; Essam Shehab
    Companies from industrialised nations are faced with the threat of competition from low-cost countries. We suggest Industrial Product Service Systems (IPS²) as a possible answer. But as the development and production can be quite expensive for the supplier, the question arises how the net benefits of an IPS² for the supplier can be determined to ensure that the IPS² is profitable. We establish a framework for the calculation of both the supplier’s revenues and costs of an IPS². Requirements induced by possible subsequent changes of the IPS² are emphasized. We propose a combination of the Net Present Value Approach and the Real Options Approach as a means of determining the quantified revenues and a combination of Direct Costing, Time-Driven Activity-Based Costing and the Real Options Approach for the calculation of the costs of an IPS² for a supplier over its life cycle.
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    Use-Oriented Business Models and Flexibility in Industrial Product-Service Systems
    (Cranfield University Press, 2009-04-01) Richter, A.; Sadek, T.; Steven, M.; Welp, E. G.; Rajkumar Roy; Essam Shehab
    Today’s corporate environments are characterized by growing dynamics and uncertainties. Here, flexibility gains importance as a critical success factor. This is especially true for long-term customer-supplier relationships. As a solution to the mentioned uncertainties connected with such a business relationship, one can think of flexible systems. The contribution at hand focuses on contracts to control for customer-supplier relationships. By reallocating property rights in use-oriented business models it is possible to distribute incentives and risks to better balance the interests of customers and suppliers. Our contribution points out the importance of flexibility and describes the opportunity to detect the optimal degree of flexibility of an IPS².