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Recently, there have been many attempts to cope with increasingly-diversified and ever-changing customer needs by combining products and services that are critical components of innovation models. Although not only manufacturers, but also service providers, try to integrate products and services, most of the previous studies on Product Service System (PSS) development deal with how to effectively integrate services into products from the product-centric point of view. Services provided by manufacturers’ PSSes, such as delivery services, training services, disposal services, and so on, offer customers ancillary value, whereas products of service providers’ PSSes enrich core value by enhancing the functionality and quality of the service. Thus, designing an effective PSS development process from the service-centric point of view is an important research topic. Accordingly, the purpose of this paper is to propose a service-oriented PSS development process, which consists of four stages: (1) strategic planning; (2) idea generation and selection; (3) service design; and (4) product development. In the proposed approach, the PSS development project is initiated and led by a service provider from a service-centric point of view. From the perspective of methodology, customer needs are converted into product functions according to Quality Function Deployment (QFD), while Analytic Hierarchy Process (AHP) is employed to prioritize the functions. Additionally, this paper illustrates a service-oriented PSS development that demonstrates the application of the proposed process. The proposed process and illustration are expected to serve as a foundation for research on service-oriented PSS development and as a useful guideline for service providers who are considering the development of a service-oriented PSS

Development of an Innovation Model Based on a Service-Oriented Product Service System (PSS)