Business Models
Product Service Systems
Jeremy Faludi (TU Delft - Design for Sustainability)
C.A. Bakker (TU Delft - Design for Sustainability)
R. Balkenende (TU Delft - Design for Sustainability)
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Abstract
Product service systems (PSSs) are revenue models where customers pay the company for the service the product provides, not (only) for the physical product itself.
Designing the revenue model along with the product can align economic incentives with environmental impacts, so the company has an incentive to design products for longer lives.
Both the company and the customer can benefit financially from longer‑lived products billed as services.
Not all product service systems are sustainable environmentally or socially, but if properly designed, they can greatly enable the circular economy.
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File under embargo until 05-03-2026