Designing Smart Product-Service Systems: The SEEM-Smart Methodology and Its Application in the Electrical Industrial Sector

IFAC PapersOnLine 58-8 (2024) 318–323 ScienceDirect Available online at www.sciencedirect.com 2405-8963 Copyright © 2024 The Authors. This is an open access article under the CC BY-NC-ND license . Peer review under responsibility of International Federation of Automatic Control. 10.1016/j.ifacol.2024.08.140 Designing Smart Product-Service Systems: The SEEM-Smart Methodology and Its Application in the Electrical Industrial Sector Vanessa Zani*, Vicente Gonzalez-Prida Diaz**, Veronica Arioli*, Roberto Sala*, Fabiana Pirola*, Antonio J. Guillén López***, Adolfo Crespo Marquez** *Department of Management, Information and Production Engineering, University of Bergamo, via Marconi 5, 24044, Dalmine (BG), Italy (e-mail: [email protected]; [email protected]; [email protected]; [email protected]) **Department of Industrial Management, School of Engineering, University of Seville, Spain (e-mail: [email protected]; [email protected]) ***Department of Business Organization, Complutense University of Madrid, Madrid, Spain (e-mail: [email protected]) Abstract: Regarding the implementation of smart technologies in Product Service Systems (PSS), this research proposes the SEEM-Smart Methodology as a model aimed at promoting innovations that provides better support for the development of Smart PSS. The methodology builds further by taking a data driven approach ensuring that both customer needs and company objectives are achieved. The research applies a case study approach studying the use of SEEM-Smart Methodology within the electrical industrial sector, specifically focusing on the analysis and conceptualization phases. This approach is characterized by its five interconnected phases: analysis of the customer needs, conceptualization of the PSS solution, design of PSS-related components, development and validation of the PSS proof of concept, and finally data monitoring. The results show that the SEEM-Smart Methodology is a useful approach to designing and engineering Smart PSS, indicating an organized, dynamic, iterative process facilitating ongoing enhancement. As a comprehensive design model that can be easily applied in the industrial context, the study finds that SEEM-Smart Methodology has significant value when it comes to Smart PSS. It fills gaps between customer orientation in the design and implementation of smart systems. Keywords: Customer Needs Analysis; Data-Driven Design; Electrical Industrial Sector; IoT Platform; PSS (Product-Service System); SEEM Framework; Smart Technologies; Sustainable Innovation. 1. INTRODUCTION Companies belonging to the manufacturing sector are increasingly shifting their businesses from traditional productcentric business models to product-service combinations in order to cope with competitive market dynamics, changing customer needs, and growing technological innovations in both finished products and production equipment (Johnson et al., 2008, Baines et al., 2017). These business models are known as Product-Service Systems (PSS) and are defined by Boehm and Thomas (2013) as “an integrated bundle of products and services which aims at creating customer utility and generating value". The integration of smart technologies has become a crucial component in the changing landscape of PSS with an emphasis on innovation, process optimization, and competitive advantage (Das et al., 2023). This contribution focuses on the Smart PSS environment, which is a complex range of solutions that consist of digital components, services, and products that are interconnected to offer clients more value (Pirola et al., 2020). The motivation for this research was to design and engineer Smart PSS in a systematic manner so that they fit both the customers’ expectations on the quality of services, as well as company objectives. This is especially relevant in sectors where technology advancements are quickly transforming how services are designed, provided, and consumed. The research proposes an application of an innovative approach that enables the development of Smart PSS through a data-driven perspective, it is a dynamic and iterative process that emphasizes ongoing enhancement in the data-driven design of Smart PSS. The methodology utilized is named SEEM-Smart (Arioli et al., 2023). SEEM is the acronym for Service Engineering Methodology and it is mainly suited for supporting the development of PSS while balancing the performance of product-service provider with customer’s value. SEEM-Smart was also developed specifically to address problems PSS solutions experienced with the integration of smart technologies. The goal of this research is therefore to apply a systematic approach to help companies in the electrical industrial sector, among others, overcome the challenges associated with Smart PSS design and installation. The research question that simplifies the objectives of this study is: How can the SEEM-Smart methodology be effectively implemented in a manufacturing company context wishing to introduce Smart-PSS solutions into its portfolio of offerings for the first time? Designing Smart Product-Service Systems: The SEEM-Smart Methodology and Its Application in the Electrical Industrial Sector Vanessa Zani*, Vicente Gonzalez-Prida Diaz**, Veronica Arioli*, Roberto Sala*, Fabiana Pirola*, Antonio J. Guillén López***, Adolfo Crespo Marquez** *Department of Management, Information and Production Engineering, University of Bergamo, via Marconi 5, 24044, Dalmine (BG), Italy (e-mail: [email protected]; [email protected]; [email protected]; [email protected]) **Department of Industrial Management, School of Engineering, University of Seville, Spain (e-mail: [email protected]; [email protected]) ***Department of Business Organization, Complutense University of Madrid, Madrid, Spain (e-mail: [email protected]) Abstract: Regarding the implementation of smart technologies in Product Service Systems (PSS), this research proposes the SEEM-Smart Methodology as a model aimed at promoting innovations that provides better support for the development of Smart PSS. The methodology builds further by taking a data driven approach ensuring that both customer needs and company objectives are achieved. The research applies a case study approach studying the use of SEEM-Smart Methodology within the electrical industrial sector, specifically focusing on the analysis and conceptualization phases. This approach is characterized by its five interconnected phases: analysis of the customer needs, conceptualization of the PSS solution, design of PSS-related components, development and validation of the PSS proof of concept, and finally data monitoring. The results show that the SEEM-Smart Methodology is a useful approach to designing and engineering Smart PSS, indicating an organized, dynamic, iterative process facilitating ongoing enhancement. As a comprehensive design model that can be easily applied in the industrial context, the study finds that SEEM-Smart Methodology has significant value when it comes to Smart PSS. It fills gaps between customer orientation in the design and implementation of smart systems. Keywords: Customer Needs Analysis; Data-Driven Design; Electrical Industrial Sector; IoT Platform; PSS (Product-Service System); SEEM Framework; Smart Technologies; Sustainable Innovation. 1. INTRODUCTION Companies belonging to the manufacturing sector are increasingly shifting their businesses from traditional productcentric business models to product-service combinations in order to cope with competitive market dynamics, changing customer needs, and growing technological innovations in both finished products and production equipment (Johnson et al., 2008, Baines et al., 2017). These business models are known as Product-Service Systems (PSS) and are defined by Boehm and Thomas (2013) as “an integrated bundle of products and services which aims at creating customer utility and generating value". The integration of smart technologies has become a crucial component in the changing landscape of PSS with an emphasis on innovation, process optimization, and competitive advantage (Das et al., 2023). This contribution focuses on the Smart PSS environment, which is a complex range of solutions that consist of digital components, services, and products that are interconnected to offer clients more value (Pirola et al., 2020). The motivation for this research was to design and engineer Smart PSS in a systematic manner so that they fit both the customers’ expectations on the quality of services, as well as company objectives. This is especially relevant in sectors where technology advancements are quickly transforming how services are designed, provided, and consumed. The research proposes an application of an innovative approach that enables the development of Smart PSS through a data-driven perspective, it is a dynamic and iterative process that emphasizes ongoing enhancement in the data-driven design of Smart PSS. The methodology utilized is named SEEM-Smart (Arioli et al., 2023). SEEM is the acronym for Service Engineering Methodology and it is mainly suited for supporting the development of PSS while balancing the performance of product-service provider with customer’s value. SEEM-Smart was also developed specifically to address problems PSS solutions experienced with the integration of smart technologies. The goal of this research is therefore to apply a systematic approach to help companies in the electrical industrial sector, among others, overcome the challenges associated with Smart PSS design and installation. The research question that simplifies the objectives of this study is: How can the SEEM-Smart methodology be effectively implemented in a manufacturing company context wishing to introduce Smart-PSS solutions into its portfolio of offerings for the first time? Designing Smart Product-Service Systems: The SEEM-Smart Methodology and Its Application in the Electrical Industrial Sector Vanessa Zani*, Vicente Gonzalez-Prida Diaz**, Veronica Arioli*, Roberto Sala*, Fabiana Pirola*, Antonio J. Guillén López***, Adolfo Crespo Marquez** *Department of Management, Information and Production Engineering, University of Bergamo, via Marconi 5, 24044, Dalmine (BG), Italy (e-mail: [email protected]; [email protected]; [email protected]; [email protected]) **Department of Industrial Management, School of Engineering, University of Seville, Spain (e-mail: [email protected]; [email protected]) ***Department of Business Organization, Complutense University of Madrid, Madrid, Spain (e-mail: [email protected]) Abstract: Regarding the implementation of smart technologies in Product Service Systems (PSS), this research proposes the SEEM-Smart Methodology as a model aimed at promoting innovations that provides better support for the development of Smart PSS. The methodology builds further by taking a data driven approach ensuring that both customer needs and company objectives are achieved. The research applies a case study approach studying the use of SEEM-Smart Methodology within the electrical industrial sector, specifically focusing on the analysis and conceptualization phases. This approach is characterized by its five interconnected phases: analysis of the customer needs, conceptualization of the PSS solution, design of PSS-related components, development and validation of the PSS proof of concept, and finally data monitoring. The results show that the SEEM-Smart Methodology is a useful approach to designing and engineering Smart PSS, indicating an organized, dynamic, iterative process facilitating ongoing enhancement. As a comprehensive design model that can be easily applied in the industrial context, the study finds that SEEM-Smart Methodology has significant value when it comes to Smart PSS. It fills gaps between customer orientation in the design and implementation of smart systems. Keywords: Customer Needs Analysis; Data-Driven Design; Electrical Industrial Sector; IoT Platform; PSS (Product-Service System); SEEM Framework; Smart Technologies; Sustainable Innovation. 1. INTRODUCTION Companies belonging to the manufacturing sector are increasingly shifting their businesses from traditional productcentric business models to product-service combinations in order to cope with competitive market dynamics, changing customer needs, and growing technological innovations in both finished products and production equipment (Johnson et al., 2008, Baines et al., 2017). These business models are known as Product-Service Systems (PSS) and are defined by Boehm and Thomas (2013) as “an integrated bundle of products and services which aims at creating customer utility and generating value". The integration of smart technologies has become a crucial component in the changing landscape of PSS with an emphasis on innovation, process optimization, and competitive advantage (Das et al., 2023). This contribution focuses on the Smart PSS environment, which is a complex range of solutions that consist of digital components, services, and products that are interconnected to offer clients more value (Pirola et al., 2020). The motivation for this research was to design and engineer Smart PSS in a systematic manner so that they fit both the customers’ expectations on the quality of services, as well as company objectives. This is especially relevant in sectors where technology advancements are quickly transforming how services are designed, provided, and consumed. The research proposes an application of an innovative approach that enables the development of Smart PSS through a data-driven perspective, it is a dynamic and iterative process that emphasizes ongoing enhancement in the data-driven design of Smart PSS. The methodology utilized is named SEEM-Smart (Arioli et al., 2023). SEEM is the acronym for Service Engineering Methodology and it is mainly suited for supporting the development of PSS while balancing the performance of product-service provider with customer’s value. SEEM-Smart was also developed specifically to address problems PSS solutions experienced with the integration of smart technologies. The goal of this research is therefore to apply a systematic approach to help companies in the electrical industrial sector, among others, overcome the challenges associated with Smart PSS design and installation. The research question that simplifies the objectives of this study is: How can the SEEM-Smart methodology be effectively implemented in a manufacturing company context wishing to introduce Smart-PSS solutions into its portfolio of offerings for the first time? 10.1016/j.ifacol.2024.08.140 2405-8963 Copyright © 2024 The Authors. This is an open access article under the CC BY-NC-ND license ( https://creativecommons.org/licenses/by-nc-nd/4.0/ ) Designing Smart Product-Service Systems: The SEEM-Smart Methodology and Its Application in the Electrical Industrial Sector Vanessa Zani*, Vicente Gonzalez-Prida Diaz**, Veronica Arioli*, Roberto Sala*, Fabiana Pirola*, Antonio J. Guillén López***, Adolfo Crespo Marquez** *Department of Management, Information and Production Engineering, University of Bergamo, via Marconi 5, 24044, Dalmine (BG), Italy (e-mail: [email protected]; [email protected]; [email protected]; [email protected]) **Department of Industrial Management, School of Engineering, University of Seville, Spain (e-mail: vgon[email protected]; [email protected]) ***Department of Business Organization, Complutense University of Madrid, Madrid, Spain (e-mail: anguil0[email protected]s) Abstract: Regarding the implementation of smart technologies in Product Service Systems (PSS), this research proposes the SEEM-Smart Methodology as a model aimed at promoting innovations that provides better support for the development of Smart PSS. The methodology builds further by taking a data driven approach ensuring that both customer needs and company objectives are achieved. The research applies a case study approach studying the use of SEEM-Smart Methodology within the electrical industrial sector, specifically focusing on the analysis and conceptualization phases. This approach is characterized by its five interconnected phases: analysis of the customer needs, conceptualization of the PSS solution, design of PSS-related components, development and validation of the PSS proof of concept, and finally data monitoring. The results show that the SEEM-Smart Methodology is a useful approach to designing and engineering Smart PSS, indicating an organized, dynamic, iterative process facilitating ongoing enhancement. As a comprehensive design model that can be easily applied in the industrial context, the study finds that SEEM-Smart Methodology has significant value when it comes to Smart PSS. It fills gaps between customer orientation in the design and implementation of smart systems. Keywords: Customer Needs Analysis; Data-Driven Design; Electrical Industrial Sector; IoT Platform; PSS (Product-Service System); SEEM Framework; Smart Technologies; Sustainable Innovation. 1. INTRODUCTION Companies belonging to the manufacturing sector are increasingly shifting their businesses from traditional productcentric business models to product-service combinations in order to cope with competitive market dynamics, changing customer needs, and growing technological innovations in both finished products and production equipment (Johnson et al., 2008, Baines et al., 2017). These business models are known as Product-Service Systems (PSS) and are defined by Boehm and Thomas (2013) as “an integrated bundle of products and services which aims at creating customer utility and generating value". The integration of smart technologies has become a crucial component in the changing landscape of PSS with an emphasis on innovation, process optimization, and competitive advantage (Das et al., 2023). This contribution focuses on the Smart PSS environment, which is a complex range of solutions that consist of digital components, services, and products that are interconnected to offer clients more value (Pirola et al., 2020). The motivation for this research was to design and engineer Smart PSS in a systematic manner so that they fit both the customers’ expectations on the quality of services, as well as company objectives. This is especially relevant in sectors where technology advancements are quickly transforming how services are designed, provided, and consumed. The research proposes an application of an innovative approach that enables the development of Smart PSS through a data-driven perspective, it is a dynamic and iterative process that emphasizes ongoing enhancement in the data-driven design of Smart PSS. The methodology utilized is named SEEM-Smart (Arioli et al., 2023). SEEM is the acronym for Service Engineering Methodology and it is mainly suited for supporting the development of PSS while balancing the performance of product-service provider with customer’s value. SEEM-Smart was also developed specifically to address problems PSS solutions experienced with the integration of smart technologies. The goal of this research is therefore to apply a systematic approach to help companies in the electrical industrial sector, among others, overcome the challenges associated with Smart PSS design and installation. The research question that simplifies the objectives of this study is: How can the SEEM-Smart methodology be effectively implemented in a manufacturing company context wishing to introduce Smart-PSS solutions into its portfolio of offerings for the first time? Designing Smart Product-Service Systems: The SEEM-Smart Methodology and Its Application in the Electrical Industrial Sector Vanessa Zani*, Vicente Gonzalez-Prida Diaz**, Veronica Arioli*, Roberto Sala*, Fabiana Pirola*, Antonio J. Guillén López***, Adolfo Crespo Marquez** *Department of Management, Information and Production Engineering, University of Bergamo, via Marconi 5, 24044, Dalmine (BG), Italy (e-mail: [email protected]; [email protected]; [email protected]; [email protected]) **Department of Industrial Management, School of Engineering, University of Seville, Spain (e-mail: [email protected]; [email protected]) ***Department of Business Organization, Complutense University of Madrid, Madrid, Spain (e-mail: [email protected]) Abstract: Regarding the implementation of smart technologies in Product Service Systems (PSS), this research proposes the SEEM-Smart Methodology as a model aimed at promoting innovations that provides better support for the development of Smart PSS. The methodology builds further by taking a data driven approach ensuring that both customer needs and company objectives are achieved. The research applies a case study approach studying the use of SEEM-Smart Methodology within the electrical industrial sector, specifically focusing on the analysis and conceptualization phases. This approach is characterized by its five interconnected phases: analysis of the customer needs, conceptualization of the PSS solution, design of PSS-related components, development and validation of the PSS proof of concept, and finally data monitoring. The results show that the SEEM-Smart Methodology is a useful approach to designing and engineering Smart PSS, indicating an organized, dynamic, iterative process facilitating ongoing enhancement. As a comprehensive design model that can be easily applied in the industrial context, the study finds that SEEM-Smart Methodology has significant value when it comes to Smart PSS. It fills gaps between customer orientation in the design and implementation of smart systems. Keywords: Customer Needs Analysis; Data-Driven Design; Electrical Industrial Sector; IoT Platform; PSS (Product-Service System); SEEM Framework; Smart Technologies; Sustainable Innovation. 1. INTRODUCTION Companies belonging to the manufacturing sector are increasingly shifting their businesses from traditional productcentric business models to product-service combinations in order to cope with competitive market dynamics, changing customer needs, and growing technological innovations in both finished products and production equipment (Johnson et al., 2008, Baines et al., 2017). These business models are known as Product-Service Systems (PSS) and are defined by Boehm and Thomas (2013) as “an integrated bundle of products and services which aims at creating customer utility and generating value". The integration of smart technologies has become a crucial component in the changing landscape of PSS with an emphasis on innovation, process optimization, and competitive advantage (Das et al., 2023). This contribution focuses on the Smart PSS environment, which is a complex range of solutions that consist of digital components, services, and products that are interconnected to offer clients more value (Pirola et al., 2020). The motivation for this research was to design and engineer Smart PSS in a systematic manner so that they fit both the customers’ expectations on the quality of services, as well as company objectives. This is especially relevant in sectors where technology advancements are quickly transforming how services are designed, provided, and consumed. The research proposes an application of an innovative approach that enables the development of Smart PSS through a data-driven perspective, it is a dynamic and iterative process that emphasizes ongoing enhancement in the data-driven design of Smart PSS. The methodology utilized is named SEEM-Smart (Arioli et al., 2023). SEEM is the acronym for Service Engineering Methodology and it is mainly suited for supporting the development of PSS while balancing the performance of product-service provider with customer’s value. SEEM-Smart was also developed specifically to address problems PSS solutions experienced with the integration of smart technologies. The goal of this research is therefore to apply a systematic approach to help companies in the electrical industrial sector, among others, overcome the challenges associated with Smart PSS design and installation. The research question that simplifies the objectives of this study is: How can the SEEM-Smart methodology be effectively implemented in a manufacturing company context wishing to introduce Smart-PSS solutions into its portfolio of offerings for the first time? Designing Smart Product-Service Systems: The SEEM-Smart Methodology and Its Application in the Electrical Industrial Sector Vanessa Zani*, Vicente Gonzalez-Prida Diaz**, Veronica Arioli*, Roberto Sala*, Fabiana Pirola*, Antonio J. Guillén López***, Adolfo Crespo Marquez** *Department of Management, Information and Production Engineering, University of Bergamo, via Marconi 5, 24044, Dalmine (BG), Italy (e-mail: [email protected]; [email protected]; [email protected]; [email protected]) **Department of Industrial Management, School of Engineering, University of Seville, Spain (e-mail: [email protected]; [email protected]) ***Department of Business Organization, Complutense University of Madrid, Madrid, Spain (e-mail: [email protected]) Abstract: Regarding the implementation of smart technologies in Product Service Systems (PSS), this research proposes the SEEM-Smart Methodology as a model aimed at promoting innovations that provides better support for the development of Smart PSS. The methodology builds further by taking a data driven approach ensuring that both customer needs and company objectives are achieved. The research applies a case study approach studying the use of SEEM-Smart Methodology within the electrical industrial sector, specifically focusing on the analysis and conceptualization phases. This approach is characterized by its five interconnected phases: analysis of the customer needs, conceptualization of the PSS solution, design of PSS-related components, development and validation of the PSS proof of concept, and finally data monitoring. The results show that the SEEM-Smart Methodology is a useful approach to designing and engineering Smart PSS, indicating an organized, dynamic, iterative process facilitating ongoing enhancement. As a comprehensive design model that can be easily applied in the industrial context, the study finds that SEEM-Smart Methodology has significant value when it comes to Smart PSS. It fills gaps between customer orientation in the design and implementation of smart systems. Keywords: Customer Needs Analysis; Data-Driven Design; Electrical Industrial Sector; IoT Platform; PSS (Product-Service System); SEEM Framework; Smart Technologies; Sustainable Innovation. 1. INTRODUCTION Companies belonging to the manufacturing sector are increasingly shifting their businesses from traditional productcentric business models to product-service combinations in order to cope with competitive market dynamics, changing customer needs, and growing technological innovations in both finished products and production equipment (Johnson et al., 2008, Baines et al., 2017). These business models are known as Product-Service Systems (PSS) and are defined by Boehm and Thomas (2013) as “an integrated bundle of products and services which aims at creating customer utility and generating value". The integration of smart technologies has become a crucial component in the changing landscape of PSS with an emphasis on innovation, process optimization, and competitive advantage (Das et al., 2023). This contribution focuses on the Smart PSS environment, which is a complex range of solutions that consist of digital components, services, and products that are interconnected to offer clients more value (Pirola et al., 2020). The motivation for this research was to design and engineer Smart PSS in a systematic manner so that they fit both the customers’ expectations on the quality of services, as well as company objectives. This is especially relevant in sectors where technology advancements are quickly transforming how services are designed, provided, and consumed. The research proposes an application of an innovative approach that enables the development of Smart PSS through a data-driven perspective, it is a dynamic and iterative process that emphasizes ongoing enhancement in the data-driven design of Smart PSS. The methodology utilized is named SEEM-Smart (Arioli et al., 2023). SEEM is the acronym for Service Engineering Methodology and it is mainly suited for supporting the development of PSS while balancing the performance of product-service provider with customer’s value. SEEM-Smart was also developed specifically to address problems PSS solutions experienced with the integration of smart technologies. The goal of this research is therefore to apply a systematic approach to help companies in the electrical industrial sector, among others, overcome the challenges associated with Smart PSS design and installation. The research question that simplifies the objectives of this study is: How can the SEEM-Smart methodology be effectively implemented in a manufacturing company context wishing to introduce Smart-PSS solutions into its portfolio of offerings for the first time? Vanessa Zani et al. / IFAC PapersOnLine 58-8 (2024) 318–323 319 Designing Smart Product-Service Systems: The SEEM-Smart Methodology and Its Application in the Electrical Industrial Sector Vanessa Zani*, Vicente Gonzalez-Prida Diaz**, Veronica Arioli*, Roberto Sala*, Fabiana Pirola*, Antonio J. Guillén López***, Adolfo Crespo Marquez** *Department of Management, Information and Production Engineering, University of Bergamo, via Marconi 5, 24044, Dalmine (BG), Italy (e-mail: [email protected]; [email protected]; [email protected]; [email protected]) **Department of Industrial Management, School of Engineering, University of Seville, Spain (e-mail: [email protected]; [email protected]) ***Department of Business Organization, Complutense University of Madrid, Madrid, Spain (e-mail: [email protected]) Abstract: Regarding the implementation of smart technologies in Product Service Systems (PSS), this research proposes the SEEM-Smart Methodology as a model aimed at promoting innovations that provides better support for the development of Smart PSS. The methodology builds further by taking a data driven approach ensuring that both customer needs and company objectives are achieved. The research applies a case study approach studying the use of SEEM-Smart Methodology within the electrical industrial sector, specifically focusing on the analysis and conceptualization phases. This approach is characterized by its five interconnected phases: analysis of the customer needs, conceptualization of the PSS solution, design of PSS-related components, development and validation of the PSS proof of concept, and finally data monitoring. The results show that the SEEM-Smart Methodology is a useful approach to designing and engineering Smart PSS, indicating an organized, dynamic, iterative process facilitating ongoing enhancement. As a comprehensive design model that can be easily applied in the industrial context, the study finds that SEEM-Smart Methodology has significant value when it comes to Smart PSS. It fills gaps between customer orientation in the design and implementation of smart systems. Keywords: Customer Needs Analysis; Data-Driven Design; Electrical Industrial Sector; IoT Platform; PSS (Product-Service System); SEEM Framework; Smart Technologies; Sustainable Innovation. 1. INTRODUCTION Companies belonging to the manufacturing sector are increasingly shifting their businesses from traditional productcentric business models to product-service combinations in order to cope with competitive market dynamics, changing customer needs, and growing technological innovations in both finished products and production equipment (Johnson et al., 2008, Baines et al., 2017). These business models are known as Product-Service Systems (PSS) and are defined by Boehm and Thomas (2013) as “an integrated bundle of products and services which aims at creating customer utility and generating value". The integration of smart technologies has become a crucial component in the changing landscape of PSS with an emphasis on innovation, process optimization, and competitive advantage (Das et al., 2023). This contribution focuses on the Smart PSS environment, which is a complex range of solutions that consist of digital components, services, and products that are interconnected to offer clients more value (Pirola et al., 2020). The motivation for this research was to design and engineer Smart PSS in a systematic manner so that they fit both the customers’ expectations on the quality of services, as well as company objectives. This is especially relevant in sectors where technology advancements are quickly transforming how services are designed, provided, and consumed. The research proposes an application of an innovative approach that enables the development of Smart PSS through a data-driven perspective, it is a dynamic and iterative process that emphasizes ongoing enhancement in the data-driven design of Smart PSS. The methodology utilized is named SEEM-Smart (Arioli et al., 2023). SEEM is the acronym for Service Engineering Methodology and it is mainly suited for supporting the development of PSS while balancing the performance of product-service provider with customer’s value. SEEM-Smart was also developed specifically to address problems PSS solutions experienced with the integration of smart technologies. The goal of this research is therefore to apply a systematic approach to help companies in the electrical industrial sector, among others, overcome the challenges associated with Smart PSS design and installation. The research question that simplifies the objectives of this study is: How can the SEEM-Smart methodology be effectively implemented in a manufacturing company context wishing to introduce Smart-PSS solutions into its portfolio of offerings for the first time? Designing Smart Product-Service Systems: The SEEM-Smart Methodology and Its Application in the Electrical Industrial Sector Vanessa Zani*, Vicente Gonzalez-Prida Diaz**, Veronica Arioli*, Roberto Sala*, Fabiana Pirola*, Antonio J. Guillén López***, Adolfo Crespo Marquez** *Department of Management, Information and Production Engineering, University of Bergamo, via Marconi 5, 24044, Dalmine (BG), Italy (e-mail: [email protected]; [email protected]; [email protected]; [email protected]) **Department of Industrial Management, School of Engineering, University of Seville, Spain (e-mail: [email protected]; [email protected]) ***Department of Business Organization, Complutense University of Madrid, Madrid, Spain (e-mail: [email protected]) Abstract: Regarding the implementation of smart technologies in Product Service Systems (PSS), this research proposes the SEEM-Smart Methodology as a model aimed at promoting innovations that provides better support for the development of Smart PSS. The methodology builds further by taking a data driven approach ensuring that both customer needs and company objectives are achieved. The research applies a case study approach studying the use of SEEM-Smart Methodology within the electrical industrial sector, specifically focusing on the analysis and conceptualization phases. This approach is characterized by its five interconnected phases: analysis of the customer needs, conceptualization of the PSS solution, design of PSS-related components, development and validation of the PSS proof of concept, and finally data monitoring. The results show that the SEEM-Smart Methodology is a useful approach to designing and engineering Smart PSS, indicating an organized, dynamic, iterative process facilitating ongoing enhancement. As a comprehensive design model that can be easily applied in the industrial context, the study finds that SEEM-Smart Methodology has significant value when it comes to Smart PSS. It fills gaps between customer orientation in the design and implementation of smart systems. Keywords: Customer Needs Analysis; Data-Driven Design; Electrical Industrial Sector; IoT Platform; PSS (Product-Service System); SEEM Framework; Smart Technologies; Sustainable Innovation. 1. INTRODUCTION Companies belonging to the manufacturing sector are increasingly shifting their businesses from traditional productcentric business models to product-service combinations in order to cope with competitive market dynamics, changing customer needs, and growing technological innovations in both finished products and production equipment (Johnson et al., 2008, Baines et al., 2017). These business models are known as Product-Service Systems (PSS) and are defined by Boehm and Thomas (2013) as “an integrated bundle of products and services which aims at creating customer utility and generating value". The integration of smart technologies has become a crucial component in the changing landscape of PSS with an emphasis on innovation, process optimization, and competitive advantage (Das et al., 2023). This contribution focuses on the Smart PSS environment, which is a complex range of solutions that consist of digital components, services, and products that are interconnected to offer clients more value (Pirola et al., 2020). The motivation for this research was to design and engineer Smart PSS in a systematic manner so that they fit both the customers’ expectations on the quality of services, as well as company objectives. This is especially relevant in sectors where technology advancements are quickly transforming how services are designed, provided, and consumed. The research proposes an application of an innovative approach that enables the development of Smart PSS through a data-driven perspective, it is a dynamic and iterative process that emphasizes ongoing enhancement in the data-driven design of Smart PSS. The methodology utilized is named SEEM-Smart (Arioli et al., 2023). SEEM is the acronym for Service Engineering Methodology and it is mainly suited for supporting the development of PSS while balancing the performance of product-service provider with customer’s value. SEEM-Smart was also developed specifically to address problems PSS solutions experienced with the integration of smart technologies. The goal of this research is therefore to apply a systematic approach to help companies in the electrical industrial sector, among others, overcome the challenges associated with Smart PSS design and installation. The research question that simplifies the objectives of this study is: How can the SEEM-Smart methodology be effectively implemented in a manufacturing company context wishing to introduce Smart-PSS solutions into its portfolio of offerings for the first time? Designing Smart Product-Service Systems: The SEEM-Smart Methodology and Its Application in the Electrical Industrial Sector Vanessa Zani*, Vicente Gonzalez-Prida Diaz**, Veronica Arioli*, Roberto Sala*, Fabiana Pirola*, Antonio J. Guillén López***, Adolfo Crespo Marquez** *Department of Management, Information and Production Engineering, University of Bergamo, via Marconi 5, 24044, Dalmine (BG), Italy (e-mail: [email protected]; [email protected]; [email protected]; [email protected]) **Department of Industrial Management, School of Engineering, University of Seville, Spain (e-mail: [email protected]; [email protected]) ***Department of Business Organization, Complutense University of Madrid, Madrid, Spain (e-mail: [email protected]) Abstract: Regarding the implementation of smart technologies in Product Service Systems (PSS), this research proposes the SEEM-Smart Methodology as a model aimed at promoting innovations that provides better support for the development of Smart PSS. The methodology builds further by taking a data driven approach ensuring that both customer needs and company objectives are achieved. The research applies a case study approach studying the use of SEEM-Smart Methodology within the electrical industrial sector, specifically focusing on the analysis and conceptualization phases. This approach is characterized by its five interconnected phases: analysis of the customer needs, conceptualization of the PSS solution, design of PSS-related components, development and validation of the PSS proof of concept, and finally data monitoring. The results show that the SEEM-Smart Methodology is a useful approach to designing and engineering Smart PSS, indicating an organized, dynamic, iterative process facilitating ongoing enhancement. As a comprehensive design model that can be easily applied in the industrial context, the study finds that SEEM-Smart Methodology has significant value when it comes to Smart PSS. It fills gaps between customer orientation in the design and implementation of smart systems. Keywords: Customer Needs Analysis; Data-Driven Design; Electrical Industrial Sector; IoT Platform; PSS (Product-Service System); SEEM Framework; Smart Technologies; Sustainable Innovation. 1. INTRODUCTION Companies belonging to the manufacturing sector are increasingly shifting their businesses from traditional productcentric business models to product-service combinations in order to cope with competitive market dynamics, changing customer needs, and growing technological innovations in both finished products and production equipment (Johnson et al., 2008, Baines et al., 2017). These business models are known as Product-Service Systems (PSS) and are defined by Boehm and Thomas (2013) as “an integrated bundle of products and services which aims at creating customer utility and generating value". The integration of smart technologies has become a crucial component in the changing landscape of PSS with an emphasis on innovation, process optimization, and competitive advantage (Das et al., 2023). This contribution focuses on the Smart PSS environment, which is a complex range of solutions that consist of digital components, services, and products that are interconnected to offer clients more value (Pirola et al., 2020). The motivation for this research was to design and engineer Smart PSS in a systematic manner so that they fit both the customers’ expectations on the quality of services, as well as company objectives. This is especially relevant in sectors where technology advancements are quickly transforming how services are designed, provided, and consumed. The research proposes an application of an innovative approach that enables the development of Smart PSS through a data-driven perspective, it is a dynamic and iterative process that emphasizes ongoing enhancement in the data-driven design of Smart PSS. The methodology utilized is named SEEM-Smart (Arioli et al., 2023). SEEM is the acronym for Service Engineering Methodology and it is mainly suited for supporting the development of PSS while balancing the performance of product-service provider with customer’s value. SEEM-Smart was also developed specifically to address problems PSS solutions experienced with the integration of smart technologies. The goal of this research is therefore to apply a systematic approach to help companies in the electrical industrial sector, among others, overcome the challenges associated with Smart PSS design and installation. The research question that simplifies the objectives of this study is: How can the SEEM-Smart methodology be effectively implemented in a manufacturing company context wishing to introduce Smart-PSS solutions into its portfolio of offerings for the first time? Copyright © 2024 The Authors. This is an open access article under the CC BY-NC-ND license ( https://creativecommons.org/licenses/by-nc-nd/4.0/ ) Designing Smart Product-Service Systems: The SEEM-Smart Methodology and Its Application in the Electrical Industrial Sector Vanessa Zani*, Vicente Gonzalez-Prida Diaz**, Veronica Arioli*, Roberto Sala*, Fabiana Pirola*, Antonio J. Guillén López***, Adolfo Crespo Marquez** *Department of Management, Information and Production Engineering, University of Bergamo, via Marconi 5, 24044, Dalmine (BG), Italy (e-mail: [email protected]; [email protected]; [email protected]; [email protected]) **Department of Industrial Management, School of Engineering, University of Seville, Spain (e-mail: [email protected]; [email protected]) ***Department of Business Organization, Complutense University of Madrid, Madrid, Spain (e-mail: [email protected]) Abstract: Regarding the implementation of smart technologies in Product Service Systems (PSS), this research proposes the SEEM-Smart Methodology as a model aimed at promoting innovations that provides better support for the development of Smart PSS. The methodology builds further by taking a data driven approach ensuring that both customer needs and company objectives are achieved. The research applies a case study approach studying the use of SEEM-Smart Methodology within the electrical industrial sector, specifically focusing on the analysis and conceptualization phases. This approach is characterized by its five interconnected phases: analysis of the customer needs, conceptualization of the PSS solution, design of PSS-related components, development and validation of the PSS proof of concept, and finally data monitoring. The results show that the SEEM-Smart Methodology is a useful approach to designing and engineering Smart PSS, indicating an organized, dynamic, iterative process facilitating ongoing enhancement. As a comprehensive design model that can be easily applied in the industrial context, the study finds that SEEM-Smart Methodology has significant value when it comes to Smart PSS. It fills gaps between customer orientation in the design and implementation of smart systems. Keywords: Customer Needs Analysis; Data-Driven Design; Electrical Industrial Sector; IoT Platform; PSS (Product-Service System); SEEM Framework; Smart Technologies; Sustainable Innovation. 1. INTRODUCTION Companies belonging to the manufacturing sector are increasingly shifting their businesses from traditional productcentric business models to product-service combinations in order to cope with competitive market dynamics, changing customer needs, and growing technological innovations in both finished products and production equipment (Johnson et al., 2008, Baines et al., 2017). These business models are known as Product-Service Systems (PSS) and are defined by Boehm and Thomas (2013) as “an integrated bundle of products and services which aims at creating customer utility and generating value". The integration of smart technologies has become a crucial component in the changing landscape of PSS with an emphasis on innovation, process optimization, and competitive advantage (Das et al., 2023). This contribution focuses on the Smart PSS environment, which is a complex range of solutions that consist of digital components, services, and products that are interconnected to offer clients more value (Pirola et al., 2020). The motivation for this research was to design and engineer Smart PSS in a systematic manner so that they fit both the customers’ expectations on the quality of services, as well as company objectives. This is especially relevant in sectors where technology advancements are quickly transforming how services are designed, provided, and consumed. The research proposes an application of an innovative approach that enables the development of Smart PSS through a data-driven perspective, it is a dynamic and iterative process that emphasizes ongoing enhancement in the data-driven design of Smart PSS. The methodology utilized is named SEEM-Smart (Arioli et al., 2023). SEEM is the acronym for Service Engineering Methodology and it is mainly suited for supporting the development of PSS while balancing the performance of product-service provider with customer’s value. SEEM-Smart was also developed specifically to address problems PSS solutions experienced with the integration of smart technologies. The goal of this research is therefore to apply a systematic approach to help companies in the electrical industrial sector, among others, overcome the challenges associated with Smart PSS design and installation. The research question that simplifies the objectives of this study is: How can the SEEM-Smart methodology be effectively implemented in a manufacturing company context wishing to introduce Smart-PSS solutions into its portfolio of offerings for the first time? Designing Smart Product-Service Systems: The SEEM-Smart Methodology and Its Application in the Electrical Industrial Sector Vanessa Zani*, Vicente Gonzalez-Prida Diaz**, Veronica Arioli*, Roberto Sala*, Fabiana Pirola*, Antonio J. Guillén López***, Adolfo Crespo Marquez** *Department of Management, Information and Production Engineering, University of Bergamo, via Marconi 5, 24044, Dalmine (BG), Italy (e-mail: [email protected]; [email protected]; [email protected]; [email protected]) **Department of Industrial Management, School of Engineering, University of Seville, Spain (e-mail: [email protected]; [email protected]) ***Department of Business Organization, Complutense University of Madrid, Madrid, Spain (e-mail: [email protected]) Abstract: Regarding the implementation of smart technologies in Product Service Systems (PSS), this research proposes the SEEM-Smart Methodology as a model aimed at promoting innovations that provides better support for the development of Smart PSS. The methodology builds further by taking a data driven approach ensuring that both customer needs and company objectives are achieved. The research applies a case study approach studying the use of SEEM-Smart Methodology within the electrical industrial sector, specifically focusing on the analysis and conceptualization phases. This approach is characterized by its five interconnected phases: analysis of the customer needs, conceptualization of the PSS solution, design of PSS-related components, development and validation of the PSS proof of concept, and finally data monitoring. The results show that the SEEM-Smart Methodology is a useful approach to designing and engineering Smart PSS, indicating an organized, dynamic, iterative process facilitating ongoing enhancement. As a comprehensive design model that can be easily applied in the industrial context, the study finds that SEEM-Smart Methodology has significant value when it comes to Smart PSS. It fills gaps between customer orientation in the design and implementation of smart systems. Keywords: Customer Needs Analysis; Data-Driven Design; Electrical Industrial Sector; IoT Platform; PSS (Product-Service System); SEEM Framework; Smart Technologies; Sustainable Innovation. 1. INTRODUCTION Companies belonging to the manufacturing sector are increasingly shifting their businesses from traditional productcentric business models to product-service combinations in order to cope with competitive market dynamics, changing customer needs, and growing technological innovations in both finished products and production equipment (Johnson et al., 2008, Baines et al., 2017). These business models are known as Product-Service Systems (PSS) and are defined by Boehm and Thomas (2013) as “an integrated bundle of products and services which aims at creating customer utility and generating value". The integration of smart technologies has become a crucial component in the changing landscape of PSS with an emphasis on innovation, process optimization, and competitive advantage (Das et al., 2023). This contribution focuses on the Smart PSS environment, which is a complex range of solutions that consist of digital components, services, and products that are interconnected to offer clients more value (Pirola et al., 2020). The motivation for this research was to design and engineer Smart PSS in a systematic manner so that they fit both the customers’ expectations on the quality of services, as well as company objectives. This is especially relevant in sectors where technology advancements are quickly transforming how services are designed, provided, and consumed. The research proposes an application of an innovative approach that enables the development of Smart PSS through a data-driven perspective, it is a dynamic and iterative process that emphasizes ongoing enhancement in the data-driven design of Smart PSS. The methodology utilized is named SEEM-Smart (Arioli et al., 2023). SEEM is the acronym for Service Engineering Methodology and it is mainly suited for supporting the development of PSS while balancing the performance of product-service provider with customer’s value. SEEM-Smart was also developed specifically to address problems PSS solutions experienced with the integration of smart technologies. The goal of this research is therefore to apply a systematic approach to help companies in the electrical industrial sector, among others, overcome the challenges associated with Smart PSS design and installation. The research question that simplifies the objectives of this study is: How can the SEEM-Smart methodology be effectively implemented in a manufacturing company context wishing to introduce Smart-PSS solutions into its portfolio of offerings for the first time? Designing Smart Product-Service Systems: The SEEM-Smart Methodology and Its Application in the Electrical Industrial Sector Vanessa Zani*, Vicente Gonzalez-Prida Diaz**, Veronica Arioli*, Roberto Sala*, Fabiana Pirola*, Antonio J. Guillén López***, Adolfo Crespo Marquez** *Department of Management, Information and Production Engineering, University of Bergamo, via Marconi 5, 24044, Dalmine (BG), Italy (e-mail: [email protected]; [email protected]; [email protected]; [email protected]) **Department of Industrial Management, School of Engineering, University of Seville, Spain (e-mail: [email protected]; [email protected]) ***Department of Business Organization, Complutense University of Madrid, Madrid, Spain (e-mail: [email protected]) Abstract: Regarding the implementation of smart technologies in Product Service Systems (PSS), this research proposes the SEEM-Smart Methodology as a model aimed at promoting innovations that provides better support for the development of Smart PSS. The methodology builds further by taking a data driven approach ensuring that both customer needs and company objectives are achieved. The research applies a case study approach studying the use of SEEM-Smart Methodology within the electrical industrial sector, specifically focusing on the analysis and conceptualization phases. This approach is characterized by its five interconnected phases: analysis of the customer needs, conceptualization of the PSS solution, design of PSS-related components, development and validation of the PSS proof of concept, and finally data monitoring. The results show that the SEEM-Smart Methodology is a useful approach to designing and engineering Smart PSS, indicating an organized, dynamic, iterative process facilitating ongoing enhancement. As a comprehensive design model that can be easily applied in the industrial context, the study finds that SEEM-Smart Methodology has significant value when it comes to Smart PSS. It fills gaps between customer orientation in the design and implementation of smart systems. Keywords: Customer Needs Analysis; Data-Driven Design; Electrical Industrial Sector; IoT Platform; PSS (Product-Service System); SEEM Framework; Smart Technologies; Sustainable Innovation. 1. INTRODUCTION Companies belonging to the manufacturing sector are increasingly shifting their businesses from traditional productcentric business models to product-service combinations in order to cope with competitive market dynamics, changing customer needs, and growing technological innovations in both finished products and production equipment (Johnson et al., 2008, Baines et al., 2017). These business models are known as Product-Service Systems (PSS) and are defined by Boehm and Thomas (2013) as “an integrated bundle of products and services which aims at creating customer utility and generating value". The integration of smart technologies has become a crucial component in the changing landscape of PSS with an emphasis on innovation, process optimization, and competitive advantage (Das et al., 2023). This contribution focuses on the Smart PSS environment, which is a complex range of solutions that consist of digital components, services, and products that are interconnected to offer clients more value (Pirola et al., 2020). The motivation for this research was to design and engineer Smart PSS in a systematic manner so that they fit both the customers’ expectations on the quality of services, as well as company objectives. This is especially relevant in sectors where technology advancements are quickly transforming how services are designed, provided, and consumed. The research proposes an application of an innovative approach that enables the development of Smart PSS through a data-driven perspective, it is a dynamic and iterative process that emphasizes ongoing enhancement in the data-driven design of Smart PSS. The methodology utilized is named SEEM-Smart (Arioli et al., 2023). SEEM is the acronym for Service Engineering Methodology and it is mainly suited for supporting the development of PSS while balancing the performance of product-service provider with customer’s value. SEEM-Smart was also developed specifically to address problems PSS solutions experienced with the integration of smart technologies. The goal of this research is therefore to apply a systematic approach to help companies in the electrical industrial sector, among others, overcome the challenges associated with Smart PSS design and installation. The research question that simplifies the objectives of this study is: How can the SEEM-Smart methodology be effectively implemented in a manufacturing company context wishing to introduce Smart-PSS solutions into its portfolio of offerings for the first time? The paper is organized as follows. After a literature background on Smart PSS and methodologies for supporting its design and installation (section 2), this paper presents the five phases of the SEEM-Smart Methodology (section 3). Later, a case study describes in practice how the methodology was used, with special focus on analysis and conceptualization phases (section 4). Finally, the paper concludes with conclusions and future steps (section 5). 2. LITERATURE BACKGROUND The literature on Smart Product-Service Systems (Smart PSS) is rapidly increasing and several publications have focused their discussion on the obstacles and potential that lies in using smart technologies to develop traditional PSS. The study by Pezzotta et al. (2014) has played a significant role in balancing provider quality against customer worthiness and established the basis for the Service Engineering Methodology (SEEM) to design traditional PSS. However, the fast evolution of smart technologies calls for a new approach that could be able to face complexities compared with smart PSS design. Won et al. (2014) And Oh et al. (2021) use simulation to model complex relationships among the actors involved in PSS and evaluate their performance. Song and Sakao (2017) proposed a customization-oriented framework for the design of sustainable PSS; in this framework, a modularization strategy is used to cluster and then select PSS components that meet specific customer requirements. Pezzotta et al. (2018) proposed the Product Service System Lean Design Methodology (PSSLDM). It aims to cover all phases of the PSS lifecycle by collecting data useful for improving the PSS offering and its design process, reducing waste in the initial design phase. Fargnoli et al. (2018) presented a methodology based on the analysis of customer requirements by integrating with the Quality Function Deployment (QFD) method for PSS. Furthermore, Jiang at al. (2020) propose a methodology where Design starts from the product, and services are added gradually. The same year Belkadi et al., (2020) proposed an integrated, collaborative platform for the design and development of a product service system and Cong et al. (2020) present Information-driven design entropy theory for Smart PSS development which utilizes a novel concept of design entropy to consider the process of information prediction, summarization, conversion, and updating overall; the methodology they propose is based on information theory. Most recent frameworks do not fully exploit all possible benefits of available intelligent technologies. Therefore, Arioli et al. (2023) suggested a SEEM methodology update for Smart PSS design and engineering, the SEEM-Smart Methodology, which extends the structure originally proposed by including a data-oriented viewpoint. This work makes a valuable contribution by proposing a case study in the manufacturing sector, but it mentions the need of applying such methodology in other industries and sectors for further validating it. For this reason, an application in the electrical industry is presented below, which is currently limited to the initial phases of the methodology and does not advance into detail about its later stages. 3. METHODOLOGY: SEEM-SMART The SEEM-Smart Methodology Shown in Figure 1 integrates the phases of the original SEEM, proposed by Pezzotta et Al. (2014), with a data-driven perspective. It consists of five interconnected phases that are supported by different methods; to complete all steps, communication within the different areas of the company and with the customer are essential. The activities that make up each phase are detailed below; they have outputs that result in inputs for the follow ones. 3.1 Analysis of the customer needs and as-is product service solutions and process The PSS (re)engineering process starts with the definition of the target customers and the consequent analysis of their characteristics and behaviors to better understand and meet their needs. It is important to have direct contact with customers and possible tools can be interviews, meetings or existing reviews and feedbacks ’analysis. For gathering information on customers and defining their needs, the Personal Model (PM) is suggested (Pruitt & Adlin, 2016). Figure 1. SEEM-Smart Methodology phases (Arioli et al., 2023). 320 Vanessa Zani et al. / IFAC PapersOnLine 58-8 (2024) 318–323 The Failure Mode, Effects, and Criticality Analysis model (FMECA) (Chen et al., 2012) model can be used to identify critical components of an asset and potential areas for improvement while BPMN2.0 is the method proposed to describe the internal and external perspective of the service delivery process (Aagesen & Krogstie, 2009). 3.2 Conceptualization of the PSS solution and related resources Once the customers’ feedback is collected, several PSS solutions are proposed and then those ones that offer value for both customer and supplier are selected and implemented. Product-Service Concept Tree (PSCT) method, based on a hierarchical structure, is used to identify possible PSS solutions. It is divided into four levels (Pezzotta et al., 2018):  Needs (N): elements identified in the first phase that customer consider essential or desirable.  Wishes (W): refer to how customers want to meet their needs, in relation to company business.  Solutions (S): possible solutions (i.e., products, services, or a bundle of them) that the company can identify to fulfill customers’ wishes and needs.  Resources (R): the main human/software resources and/or products necessary to implement the identified solutions. They can be new or existing resources. The next step is a first evaluation of the solutions proposed in the PSCT, the analysis of the value considers the difficulty that the company could find during the implementation and the possible impact, in this way it is possible to identify the most appropriate solution(s). Depending on the case, qualitative or quantitative evaluations can be made. 3.3 Design of PSS-related components To support the new offering, the main elements involved in service provision and data flow are examined and designed: product, new infrastructure, network and To-Be Processes. The last one is designed considering all the processes affected by the new data flow generated by the new service offering, tools such as flowchart or BPMN2.0 can be used. 3.4 Development and validation of the PSS proof of concept and the related infrastructure This phase includes the development of a proof of concept of the PSS offer, definition of the required infrastructure and the final delivery process. The proof of concept is a sort of prototype of the final solution and its performances must be validated e.g., through simulation systems. When all the potential scenarios are reviewed and decisions about the final PSS solution are made, it is ready for delivery to the market. 3.5 Monitoring of the results The solution produced and distributed to the market needs to be monitored to always be effective and efficient according to customer requirements. For this reason, an initial list of KPIs is proposed at this stage and will be finalized when all components of the PSS are implemented. The frequency with which customers provide feedback to the company is established, so that their level of satisfaction can always be monitored. 4. CASE STUDY In this section, the SEEM-Smart methodology is applied to a business case, more specifically to a company based in Spain that operates internationally in the electrical industrial sector. The company's core business is the design and manufacture of electrical switchboards that find application in many areas: high or low voltage switchboards, control and protection switchboards, equipment for all types of industrial, energy and service installations, modular solutions for electrical rooms, turbine control centers or power rooms. Over the past ten years the company has begun to open its doors to new applications in the renewable energy sector, it has acquired expertise in the development of photovoltaic inverters and energy storage. Until now, the company has mainly focused on the production, integration and installation of equipment, but many customers also require a more comprehensive service package. The services currently offered are few and elementarily structured and customer service processes are not well defined, it follows that the relationship between customer and service provider has potential for improvement. With the advent of digitalization, the company grasped the potential of digital servitization and decided to try and expand its service catalogue. To do so, it took part in a call launched by Red.es, a public business entity linked to the Spanish Ministry of Digital Transformation, and in collaboration with several entities, including the University of Seville, it created a project specifically aimed to generate an evolution in the ProductService System currently offered. The tools used to achieve the final objective are manifold, including the SEEM-Smart. The following sections provide a full overview of the methodology’s first two steps. The last three phases are not covered in this study due to the timing of the work but the full implementation and a robustness analysis of the methodology will be addressed in future development. 4.1 Analysis The starting point was the analysis of the customer and the definition of its needs. To achieve this objective, the research team formulated a series of questions to investigate the customer's needs and wishes. Specifically, they formulated around thirty questions, which were classified into five different thematic blocks: (i) the first block contains general questions on the purchasing process; (ii) the second is focused on maintenance; (iii) the third is aimed at performance monitoring, (iv) the fourth focuses on the product life cycle; and the last one (v) on technical support and warranty. These thematic areas were chosen in order to cover the entire life cycle of the asset. In this way, it was possible to assess the quality perceived by the customer throughout its relationship with the provider, from the offer generation phase to the end of the PSS useful life. Particular attention was paid to aftersales (ii,iii,v), since it was identified by the company as an area to be strengthened. The questionnaire brought to light two primary needs: 1. Improvement of the bidding process; Vanessa Zani et al. / IFAC PapersOnLine 58-8 (2024) 318–323 321 The Failure Mode, Effects, and Criticality Analysis model (FMECA) (Chen et al., 2012) model can be used to identify critical components of an asset and potential areas for improvement while BPMN2.0 is the method proposed to describe the internal and external perspective of the service delivery process (Aagesen & Krogstie, 2009). 3.2 Conceptualization of the PSS solution and related resources Once the customers’ feedback is collected, several PSS solutions are proposed and then those ones that offer value for both customer and supplier are selected and implemented. Product-Service Concept Tree (PSCT) method, based on a hierarchical structure, is used to identify possible PSS solutions. It is divided into four levels (Pezzotta et al., 2018):  Needs (N): elements identified in the first phase that customer consider essential or desirable.  Wishes (W): refer to how customers want to meet their needs, in relation to company business.  Solutions (S): possible solutions (i.e., products, services, or a bundle of them) that the company can identify to fulfill customers’ wishes and needs.  Resources (R): the main human/software resources and/or products necessary to implement the identified solutions. They can be new or existing resources. The next step is a first evaluation of the solutions proposed in the PSCT, the analysis of the value considers the difficulty that the company could find during the implementation and the possible impact, in this way it is possible to identify the most appropriate solution(s). Depending on the case, qualitative or quantitative evaluations can be made. 3.3 Design of PSS-related components To support the new offering, the main elements involved in service provision and data flow are examined and designed: product, new infrastructure, network and To-Be Processes. The last one is designed considering all the processes affected by the new data flow generated by the new service offering, tools such as flowchart or BPMN2.0 can be used. 3.4 Development and validation of the PSS proof of concept and the related infrastructure This phase includes the development of a proof of concept of the PSS offer, definition of the required infrastructure and the final delivery process. The proof of concept is a sort of prototype of the final solution and its performances must be validated e.g., through simulation systems. When all the potential scenarios are reviewed and decisions about the final PSS solution are made, it is ready for delivery to the market. 3.5 Monitoring of the results The solution produced and distributed to the market needs to be monitored to always be effective and efficient according to customer requirements. For this reason, an initial list of KPIs is proposed at this stage and will be finalized when all components of the PSS are implemented. The frequency with which customers provide feedback to the company is established, so that their level of satisfaction can always be monitored. 4. CASE STUDY In this section, the SEEM-Smart methodology is applied to a business case, more specifically to a company based in Spain that operates internationally in the electrical industrial sector. The company's core business is the design and manufacture of electrical switchboards that find application in many areas: high or low voltage switchboards, control and protection switchboards, equipment for all types of industrial, energy and service installations, modular solutions for electrical rooms, turbine control centers or power rooms. Over the past ten years the company has begun to open its doors to new applications in the renewable energy sector, it has acquired expertise in the development of photovoltaic inverters and energy storage. Until now, the company has mainly focused on the production, integration and installation of equipment, but many customers also require a more comprehensive service package. The services currently offered are few and elementarily structured and customer service processes are not well defined, it follows that the relationship between customer and service provider has potential for improvement. With the advent of digitalization, the company grasped the potential of digital servitization and decided to try and expand its service catalogue. To do so, it took part in a call launched by Red.es, a public business entity linked to the Spanish Ministry of Digital Transformation, and in collaboration with several entities, including the University of Seville, it created a project specifically aimed to generate an evolution in the ProductService System currently offered. The tools used to achieve the final objective are manifold, including the SEEM-Smart. The following sections provide a full overview of the methodology’s first two steps. The last three phases are not covered in this study due to the timing of the work but the full implementation and a robustness analysis of the methodology will be addressed in future development. 4.1 Analysis The starting point was the analysis of the customer and the definition of its needs. To achieve this objective, the research team formulated a series of questions to investigate the customer's needs and wishes. Specifically, they formulated around thirty questions, which were classified into five different thematic blocks: (i) the first block contains general questions on the purchasing process; (ii) the second is focused on maintenance; (iii) the third is aimed at performance monitoring, (iv) the fourth focuses on the product life cycle; and the last one (v) on technical support and warranty. These thematic areas were chosen in order to cover the entire life cycle of the asset. In this way, it was possible to assess the quality perceived by the customer throughout its relationship with the provider, from the offer generation phase to the end of the PSS useful life. Particular attention was paid to aftersales (ii,iii,v), since it was identified by the company as an area to be strengthened. The questionnaire brought to light two primary needs: 1. Improvement of the bidding process; 2. Eco-efficient maintenance management. Not only the customer needs were investigated in this phase but also an internal critical analysis of the company’s actual service offerings was performed. Researchers looked the services currently present within the offer catalogue and their delivery processes. The main services offered are: - Product and performance warranty; - Corrective and preventive maintenances; - O&M training courses. Warranty and maintenance contracts are often standard contracts based on periodic replacement of asset components; sometimes replacements are made because they are contractually planned but without real evidence that they are needed. The training courses offered are optional, the client choses if integrate them in the offer proposal or not; this means that not all customers are completely familiar with the product they are purchasing. Analyzing the delivery processes of these services, they are not regulated by specific procedures, but the plan of action depends on each case and is flexible. The same thing occurs to the flow of communication between customer and supplier. It was also highlighted that the resolution of incidents takes quite a long time as the company, which operates internationally, does not have technical support teams located in the various geographical areas nor tools capable of resolving incidents remotely. In addition, predictive maintenance is not considered. 4.2 Conceptualization From the identified needs and the initial snapshot of the services currently offered, the PSCT was developed to identify possible PSS solutions. This phase required brainstorming with different business areas and many expert opinions within the research team. This resulted in two PSCTs, one for each need, which present possible solutions to meet customer requirements. In this paper, only the need that emerged at the maintenance level will be explored, since this is the area that most interests the company and is best suited to the integration of data-driven approaches. The acronyms used in PSCT graph illustrated in Figure 2 are explained in Table 1. Improving eco-efficiency in maintenance management (N1’) led to the identification of thirteen different solutions. The company should propose more structured and clear warranty plans (S1’) to the customer, in which the responsibilities of each par are better defined. Maintenance plans (S2’) should be customized to specific needs and structured in order to optimize the overall performance of the plant. Maintenance planning must consider the scalability and adaptability of the equipment because the customer could consider the possibility of future expansion or modification of the equipment. Communication between customer and supplier should be more fluid (S3’) and easy and for this reason a communication system (R3’) can be a useful tool. Diagnostic and data analysis (R4’) would allow to predict and prevent failures, as well as optimizing equipment performance throughout its useful life (S4’). All the collecting data could be joined into a digital knowledge base (S5’) to extract and organize information from maintenance reports, it is considered useful to quickly find solutions to frequent problems and improve autonomy of the customer (W3’). Figure 2. PSCT - Eco-efficient maintenance management Table 1. PSCT - Description Level Acronym Description Need N1’ Maintenance management ecoefficiency Whishes W1’ Better structured maintenance interventions plans W2’ Availability and extension of the useful life of the asset W3’ Improvement of support documentation (self-management) W4’ Quick response time and quick intervention time W5’ Integration of maintenance systems with other plant management systems Solutions S1’ New warranty contracts S2’ New Preventive and corrective maintenance contract S3’ Fluid and transparent communication with suppliers S4’ Optimization of the equipment life cycle S5’ Creation of a Digital knowledge base S6’ Technical support training S7’ Detailed procedures for maintenance recording S8’ Rapid action protocols for critical incidents S9’ Digital link with the inventory management process S10’ Real time monitoring S11’ Maintenance teams with specific training and access to technical information S12’ Manufacturer involvement in problem resolution S13’ Development of standardized communication interfaces and protocols Resources R1’ Health analysis R2’ Maintenance planning and scheduling tools R3’ Communication system R4’ Diagnostic and data analysis tools R5’ Maintenance Data R6’ Computer Aided Maintenance Management systems (CMMS) R7’ IoT Sensors 322 Vanessa Zani et al. / IFAC PapersOnLine 58-8 (2024) 318–323 Always with the aim of making the customer more autonomous, the company could create rapid action protocols for critical incidents (S8’) and offer technical training programs (S6’): virtual or in person training sessions, as well as remote technical support to resolve incidents quickly and efficiently. To record maintenance actions and keep track of them, detailed procedures should be established (S7’): this allows the creation of a comprehensive history of verifications and resolution of incidents that would facilitate reference in case of similar failures in the future and allow a continuous and proactive monitoring of the system. Customers value a quick first response time in the maintenance package offered (W4’), which implies efficient resolution of incidents, especially those of very specific nature requiring contact with the original manufacturer. In this regard, it would be good to have a digital link with the inventory management process (S9’), to have maintenance teams with specific training and access to technical information (S11’) and for the manufacturer to be involved in problem-solving since the early contractual stage (S12’). Moreover, the integration the maintenance systems with other plan management systems (W5’) seems to be valuable for the customer which implies efforts to develop standardized communication interfaces and protocols (S13’). An innovative solution has emerged: real time monitoring (S10’); using IoT sensors is possible to gain efficiency and productivity and to improve performance for both client and provider. As suggested by the SEEM-Smart methodology, the solutions should be carefully evaluated in order to drive the efforts on the most appropriate ones. In this case, the Delphi method was used to carefully evaluate all the identified solutions (Crawford & Wright, 2016). Each one was given a certain level of implementation difficulty and a level of expected impact. Based on company reality and expert opinions, difficulty was assessed according to three criteria: Technical complexity, Resource allocation, and Change Management. While the expected impact was assessed according to four criteria: Efficiency gains, Economic impact, Employee wellbeing and Environmental impact. The possible responses were limited to Low, Moderate and High. The evaluations were carried out by members of the research team and by internal company figures operating in different company areas. The final evaluation is the result of the weighted average of all individual evaluations in which the opinions of internal staff had a higher weight. Figure 3. Impact/difficulty matrix resulted from the Delphi study Fig. 3 provides the results obtained from the assessment using the Delphi method. Since not all selected subjects have provided an evaluation so far, the matrix shows the preliminary results. Anyway, the solutions located in the upper left quadrant, with low implementation difficulty and high impact, are that worth implementing for now. We notice that some solutions (S3’, S5’, S9’, S10’, S11’) within this quadrant can be considered part of a broader overall solution: a cyberphysical system (i.e., IoT platform) that supports the digital management of assets and related services to provide the user and the company with various functionalities. For instance, the IoT platform can make communication between customer and supplier easier by being the single point of communication (S3’), it also can store data related to the product creating a digital knowledge base (S5’), and it can allow for real-time monitoring (S10’). All these data can be used to better train the maintenance teams (S11’) thus supporting the need of having an eco-efficient maintenance management system. In this way, smart technologies are integrated into the company’s business model and all possible benefits are fully exploited. Therefore, the next steps of the SEEM-Smart Methodology are built from the selection made in this important step. 4.3 Next steps The PSS solutions selected from the previous step must be properly designed, meaning that the elements and processes impacted by the adoption of the solutions must be reviewed. The evaluation of a Proof of concept of the PSS solutions and enabling technologies (i.e., Platform IoT) could be useful before the real implementation and launch on the market. Hereafter, the monitoring of the solutions, with proper indicators and specific threshold values, would follow as measure of the level of customer satisfaction. This phase is not only the last step of the methodology, but it could also be the starting point for a new customer needs analysis. SEEM-Smart is in fact a dynamic and iterative process aiming at continuous improvement. 5. CONCLUSIONS The SEEM-Smart Methodology allows to overcome the 'service paradox' (Gebauer & Fleisch, 2005) by implementing Smart PSS considering both the interests of the customer and of the company. The service provider must fully understand the needs of the customers, who occupy a central position in the service business, and establish a solid relationship with them. To design and engineer a Smart PSS appropriately, communication within all business areas must not fail and the service provider must actively participate in the implementation of all steps of the methodology. Only in this way is it possible to offer valued and profitable services. The use of the SEEM-Smart methodology in a firm operating in the electrical industrial sector was successful in driving the discovery and selection of several product-service solutions to fulfill the customer requirement of having an eco-efficient maintenance management system, which concretely would be enabled by smart technologies (i.e., IoT platform). As initially mentioned, the last three phases of the methodology are not covered in this publication, this is mainly due to the timing of the work. However, collaboration with the company will Vanessa Zani et al. / IFAC PapersOnLine 58-8 (2024) 318–323 323 Always with the aim of making the customer more autonomous, the company could create rapid action protocols for critical incidents (S8’) and offer technical training programs (S6’): virtual or in person training sessions, as well as remote technical support to resolve incidents quickly and efficiently. To record maintenance actions and keep track of them, detailed procedures should be established (S7’): this allows the creation of a comprehensive history of verifications and resolution of incidents that would facilitate reference in case of similar failures in the future and allow a continuous and proactive monitoring of the system. Customers value a quick first response time in the maintenance package offered (W4’), which implies efficient resolution of incidents, especially those of very specific nature requiring contact with the original manufacturer. In this regard, it would be good to have a digital link with the inventory management process (S9’), to have maintenance teams with specific training and access to technical information (S11’) and for the manufacturer to be involved in problem-solving since the early contractual stage (S12’). Moreover, the integration the maintenance systems with other plan management systems (W5’) seems to be valuable for the customer which implies efforts to develop standardized communication interfaces and protocols (S13’). An innovative solution has emerged: real time monitoring (S10’); using IoT sensors is possible to gain efficiency and productivity and to improve performance for both client and provider. As suggested by the SEEM-Smart methodology, the solutions should be carefully evaluated in order to drive the efforts on the most appropriate ones. In this case, the Delphi method was used to carefully evaluate all the identified solutions (Crawford & Wright, 2016). Each one was given a certain level of implementation difficulty and a level of expected impact. Based on company reality and expert opinions, difficulty was assessed according to three criteria: Technical complexity, Resource allocation, and Change Management. While the expected impact was assessed according to four criteria: Efficiency gains, Economic impact, Employee wellbeing and Environmental impact. The possible responses were limited to Low, Moderate and High. The evaluations were carried out by members of the research team and by internal company figures operating in different company areas. The final evaluation is the result of the weighted average of all individual evaluations in which the opinions of internal staff had a higher weight. Figure 3. Impact/difficulty matrix resulted from the Delphi study Fig. 3 provides the results obtained from the assessment using the Delphi method. Since not all selected subjects have provided an evaluation so far, the matrix shows the preliminary results. Anyway, the solutions located in the upper left quadrant, with low implementation difficulty and high impact, are that worth implementing for now. We notice that some solutions (S3’, S5’, S9’, S10’, S11’) within this quadrant can be considered part of a broader overall solution: a cyberphysical system (i.e., IoT platform) that supports the digital management of assets and related services to provide the user and the company with various functionalities. For instance, the IoT platform can make communication between customer and supplier easier by being the single point of communication (S3’), it also can store data related to the product creating a digital knowledge base (S5’), and it can allow for real-time monitoring (S10’). All these data can be used to better train the maintenance teams (S11’) thus supporting the need of having an eco-efficient maintenance management system. In this way, smart technologies are integrated into the company’s business model and all possible benefits are fully exploited. Therefore, the next steps of the SEEM-Smart Methodology are built from the selection made in this important step. 4.3 Next steps The PSS solutions selected from the previous step must be properly designed, meaning that the elements and processes impacted by the adoption of the solutions must be reviewed. The evaluation of a Proof of concept of the PSS solutions and enabling technologies (i.e., Platform IoT) could be useful before the real implementation and launch on the market. Hereafter, the monitoring of the solutions, with proper indicators and specific threshold values, would follow as measure of the level of customer satisfaction. This phase is not only the last step of the methodology, but it could also be the starting point for a new customer needs analysis. SEEM-Smart is in fact a dynamic and iterative process aiming at continuous improvement. 5. CONCLUSIONS The SEEM-Smart Methodology allows to overcome the 'service paradox' (Gebauer & Fleisch, 2005) by implementing Smart PSS considering both the interests of the customer and of the company. The service provider must fully understand the needs of the customers, who occupy a central position in the service business, and establish a solid relationship with them. To design and engineer a Smart PSS appropriately, communication within all business areas must not fail and the service provider must actively participate in the implementation of all steps of the methodology. Only in this way is it possible to offer valued and profitable services. The use of the SEEM-Smart methodology in a firm operating in the electrical industrial sector was successful in driving the discovery and selection of several product-service solutions to fulfill the customer requirement of having an eco-efficient maintenance management system, which concretely would be enabled by smart technologies (i.e., IoT platform). As initially mentioned, the last three phases of the methodology are not covered in this publication, this is mainly due to the timing of the work. However, collaboration with the company will continue until all the SEEM-Smart phases and the project itself are completed. Future work is already well planned and some information have been provided in Section 4.3. ACKNOWLEDGEMENTS The following research is based on the ongoing project with the company CEN Solutions, “PS/DS”. 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