Uncovering benefits and risks of integrated product service offerings — Using a case of technology encapsulation

Abstract

The objective of this article is to uncover benefits and risks of Integrated Product Service Offering (IPSO) in a systematic manner. To do so, it adopts an explorative longitudinal in-depth case study (development of an IPSO based on a new technology) and adds insights to the existing literature. The article first proposes a theoretical and generic framework termed the PCP (Provider — Customer — Product) triangle with associated information flow and uncertainty. Second, various types of benefits and risks are presented based on the framework. Among others, the benefit of keeping IPR (Intellectual Property Rights) with the provider and the risk of regulation change are new findings from the case study. In addition, the case study reveals that IPSO is regarded as a positive contributor to innovation. Applying the framework and classification of benefits and risks as norms to other cases has yet to be done for verification. However, the framework contributes scientifically to a better understanding of the benefits and risks of IPSO. In addition, this framework is advantageous with its easiness to understand, which contributes practically to the dissemination of IPSO insight to industry.

Keywords

Product/service system (PSS) / new technology / intellectual property right (IPR) / time to market / innovation / uncertainty

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