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Review of PPX Business Models: Adaptability and Feasibility of PPX Models in the Equipment Manufacturing Industry

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Product Lifecycle Management. Green and Blue Technologies to Support Smart and Sustainable Organizations (PLM 2021)

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Abstract

The overall purpose of this study is to understand how manufacturing companies have so far made use of and can make use of pay-per-x (PPX) business models (BMs) largely in capital product markets, and which mechanisms have helped them in the implementation. Through systematic literature approach this study analysed 14 research publications which exclusively focused on PPX business models. The differences between PPX business model patterns were studied from three perspective, namely criticality of product, need of process knowledge and complexity of the process and its output. We find out that the pay-per-outcome business model, is more prevalent for products which are critical, needs extensive process knowledge and are rather complex. In contrarily, pay-per-output business model is more prevalent when these conditions are not met. However, none of these three factors prevents implementing other type of PPX business model but rather specific business model is more feasible when specific conditions are met. This paper contributes a much more in-depth qualitative view on the patterns and related qualitative arguments for the useful application of PPX models in equipment manufacturing industries and helps to understand the differences between PPX business model types.

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Acknowledgement

This work was part of funding received by Business Finland 33250/31/2020 - BF/Future Spaces.

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Authors and Affiliations

  1. Tampere University, Tampere, Finland

    Veli-Matti Uski, Prasanna Kumar Kukkamalla, Hannu Kärkkäinen & Karan Menon

  2. JK Lakshmipath University, Jaipur, India

    Sameer Mittal

  3. Carroll University, Waukesha, USA

    Muztoba Ahmad Khan

  4. West Virginia University, Morgantown, USA

    Thorsten Wuest

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  1. Veli-Matti Uski
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  2. Prasanna Kumar Kukkamalla
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  3. Hannu Kärkkäinen
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  6. Muztoba Ahmad Khan
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Correspondence to Veli-Matti Uski .

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Editors and Affiliations

  1. Pontifícia Universidade Católica do Paraná, Curitiba, Brazil

    Osiris Canciglieri Junior

  2. University Grenoble Alpes, Grenoble, France

    Frédéric Noël

  3. École de Technologie Supérieure, Montreal, QC, Canada

    Louis Rivest

  4. Qatar University, Doha, Qatar

    Abdelaziz Bouras

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Uski, VM. et al. (2022). Review of PPX Business Models: Adaptability and Feasibility of PPX Models in the Equipment Manufacturing Industry. In: Canciglieri Junior, O., Noël, F., Rivest, L., Bouras, A. (eds) Product Lifecycle Management. Green and Blue Technologies to Support Smart and Sustainable Organizations. PLM 2021. IFIP Advances in Information and Communication Technology, vol 639. Springer, Cham. https://doi.org/10.1007/978-3-030-94335-6_26

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  • DOI: https://doi.org/10.1007/978-3-030-94335-6_26

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