ABSTRACT
This chapter discusses what a Product-Service System (PSS) is, why a PSS is understood as an opportunity for system eco-efficiency in industrialised contexts, and finally why and how such an approach could be promising in emerging and low-income contexts, that is for all sustainability dimensions, environmental, socio-ethical and economic. Three major business approaches to system innovation have been studied and listed as favourable for eco-efficiency: Product-oriented PSS; Result-oriented PSS and Use-oriented PSS. The chapter describes the main benefits by the customer and the producer/supplier. For the customer, a PSS is seen to provide value through more customisation and higher quality. The service component, being flexible, can also deliver new functionality better suited to customer needs and is often described as removing administrative or monitoring tasks away from the customer and back to the manufacturer. The PSS benefits for companies result from improved strategic positioning, which is tied to the potential added value perceived by clients.
