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

Veli Matti Uski, Prasanna Kumar Kukkamalla, Hannu Kärkkäinen, Karan Menon, Sameer Mittal, Muztoba Ahmad Khan, Thorsten Wuest

Research output: Chapter in Book/Report/Conference proceedingConference contributionScientificpeer-review

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.

Original languageEnglish
Title of host publicationProduct Lifecycle Management. Green and Blue Technologies to Support Smart and Sustainable Organizations
Subtitle of host publication18th IFIP WG 5.1 International Conference, PLM 2021, Curitiba, Brazil, July 11–14, 2021, Revised Selected Papers, Part I
EditorsOsiris Canciglieri Junior, Frédéric Noël, Louis Rivest, Abdelaziz Bouras
Pages358-372
Number of pages15
DOIs
Publication statusPublished - 2022
Publication typeA4 Article in conference proceedings
EventINTERNATIONAL CONFERENCE ON PRODUCT LIFECYCLE MANAGEMENT -
Duration: 1 Jan 1900 → …

Publication series

NameIFIP Advances in Information and Communication Technology
Volume639
ISSN (Print)1868-4238
ISSN (Electronic)1868-422X

Conference

ConferenceINTERNATIONAL CONFERENCE ON PRODUCT LIFECYCLE MANAGEMENT
Period1/01/00 → …

Keywords

  • Business model
  • NOBM
  • Pay-per-outcome
  • Pay-per-output
  • Pay-per-x

Publication forum classification

  • Publication forum level 1

ASJC Scopus subject areas

  • Information Systems
  • Computer Networks and Communications
  • Information Systems and Management

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