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Published online by Cambridge University Press:  27 July 2021

Sanghyun Oh*
Department of Industrial Engineering and Institute for Industrial Systems Innovation, Seoul National University
Yoo S. Hong
Department of Industrial Engineering and Institute for Industrial Systems Innovation, Seoul National University
Jihwan Lee
Division of Systems Management and Engineering, Pukyong National University
Yong Se Kim
Creative Design Institute, Sungkyunkwan University
Oh, Sanghyun, Seoul National University, Industrial Engineering, Korea, Republic of (South Korea),


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To pursue business innovation with PSS, many different PSS concepts are designed and evaluated. Various business models of a PSS design concept are devised and evaluated as well. Evaluation of the economic sustainability of PSS business models is critical. This paper presents a systematic method to evaluate the economic sustainability of PSS business models using a system dynamics modelling template. System dynamics modelling task is challenging for practitioners due to the variety of variables comprising business model strategies and their complex interrelationships. To enable the modelling task, a system dynamics modelling template composed of six modules of customer acquisition, channel acquisition, profit creation, resource acquisition, PSS provision, and partnership pattern has been devised. The PSS business model evaluation method has been illustrated using a smart study experience management service system design case to demonstrate the proposed system dynamics modelling template can reflect the case-specific business model which consists of the particular business model strategies.

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The Author(s), 2021. Published by Cambridge University Press


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