Simulation-Based Business Case for PSS: A System Dynamics Framework

Abstract

Many potential business benefits have been widely associated with the implementation of PSS. Still, several significant challenges for transitioning to PSS persist, especially in regards to materializing the business benefits. To tackle such difficulty, this paper suggests a theory-driven concept of a business case for PSS implementation and management, based on a System Dynamics simulation framework. With a maturity-oriented theoretical perspective and the associated capability concepts, the study provides insights into how the development of PSS capabilities can potentially affect corporate performance over time. The paper's preliminary results identify the potential for managers and other decision-makers to use the business case simulator to assessing PSS-related business benefits and responding to multiple implementation scenarios and strategies.