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This paper aims at exploring the emergence of a new trend towards Product Service Systems (PSS) business model among manufacturing companies which are made available by ICT, with a particular focus on IoT and analytics. While PSS have been already widely researched, the impact of new ICT technologies on the value proposition which a company offers to its clients has been explored less. The Internet of Things (IoT) enabled product-service system provides opportunities to transform old business model based on a product delivery into a new business model which allows for offering new ICT based services usable with a product or even instead of a product. Leading manufacturing companies already today are making higher profits from aftermarket service. IoT sensors, Artificial Intelligence (AI) and pervasive computing can create new business opportunities for PSS solutions by delivering data about product usage and its condition to manufacturers, who as a consequence can then make use of it in order to deliver proactive and preventive maintenance. A case study of Rolls-Royce engine manufacturer is used to analyse the impact of IoT, machine learning and analytics on the company service offering and business strategies.

From Reactive to Predictive Services: the Internet of Things (IoT) Enabled Product Service Systems (PSS) of Innovative and Sustainable Business Model