Designing Activity-based Monitoring as alternative process-based evaluation for Product-Service Systems

Product-Service System (PSS) gives customers different offers as a type of service and product integration. PSS also provides alternative solutions to customers to meet their needs without owning a product or service. PSS is a system consisting of several entities that synergize to form value. However, a collaboration between these entities can create a level of complexity that confounds product and service boundaries, making it difficult for companies to evaluate PSS. According to a review of the PSS literature, the number of research studies discussing PSS evaluation is less than those discussing PSS design. Therefore, this article aims to initiate an evaluation design for PSS's value creation and delivery process through activity-based monitoring. In consideration, suppose a series of activities are controlled to form a specific value. In that case, the value creation and delivery processes can run according to the target. Thus, PSS can be evaluated without the need to differentiate between products and services. The design of activity-based monitoring starts with determining the PSS value, describing the activity flow, selecting activities relevant to the value, and determining the priority of the activity. The case study in this article is one of the authorized car dealers in Indonesia. The results obtained from the use of activity-based monitoring, the company in the case study can control key activities in PSS value creation and delivery.