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

doi:10.1007/978-3-030-94335-6_26

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

^*Corresponding author for this work

Information and Knowledge Management

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › Scientific › peer-review

7 Citations (Scopus)

108 Downloads (Pure)

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 language	English
Title of host publication	Product Lifecycle Management. Green and Blue Technologies to Support Smart and Sustainable Organizations
Subtitle of host publication	18th IFIP WG 5.1 International Conference, PLM 2021, Curitiba, Brazil, July 11–14, 2021, Revised Selected Papers, Part I
Editors	Osiris Canciglieri Junior, Frédéric Noël, Louis Rivest, Abdelaziz Bouras
Publisher	Springer
Pages	358-372
Number of pages	15
ISBN (Print)	9783030943349
DOIs	https://doi.org/10.1007/978-3-030-94335-6_26
Publication status	Published - 2022
Publication type	A4 Article in conference proceedings
Event	INTERNATIONAL CONFERENCE ON PRODUCT LIFECYCLE MANAGEMENT - Duration: 1 Jan 1900 → …

Publication series

Name	IFIP Advances in Information and Communication Technology
Volume	639
ISSN (Print)	1868-4238
ISSN (Electronic)	1868-422X

Conference

Conference	INTERNATIONAL CONFERENCE ON PRODUCT LIFECYCLE MANAGEMENT
Period	1/01/00 → …

Funding

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

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

Access to Document

10.1007/978-3-030-94335-6_26

Review of PPX business models
This publication is copyrighted. You may download, display and print it for Your own personal use. Commercial use is prohibited
Accepted author manuscript, 280 KBLicence: Unspecified

https://urn.fi/URN:NBN:fi:tuni-202211218489Licence: Unspecified

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Uski, V. M., Kukkamalla, P. K., Kärkkäinen, H., Menon, K., Mittal, S., Khan, M. A., & Wuest, T. (2022). Review of PPX Business Models: Adaptability and Feasibility of PPX Models in the Equipment Manufacturing Industry. In O. Canciglieri Junior, F. Noël, L. Rivest, & A. Bouras (Eds.), Product Lifecycle Management. Green and Blue Technologies to Support Smart and Sustainable Organizations: 18th IFIP WG 5.1 International Conference, PLM 2021, Curitiba, Brazil, July 11–14, 2021, Revised Selected Papers, Part I (pp. 358-372). (IFIP Advances in Information and Communication Technology; Vol. 639). Springer. https://doi.org/10.1007/978-3-030-94335-6_26

Uski, Veli Matti ; Kukkamalla, Prasanna Kumar ; Kärkkäinen, Hannu et al. / Review of PPX Business Models : Adaptability and Feasibility of PPX Models in the Equipment Manufacturing Industry. Product Lifecycle Management. Green and Blue Technologies to Support Smart and Sustainable Organizations: 18th IFIP WG 5.1 International Conference, PLM 2021, Curitiba, Brazil, July 11–14, 2021, Revised Selected Papers, Part I. editor / Osiris Canciglieri Junior ; Frédéric Noël ; Louis Rivest ; Abdelaziz Bouras. Springer, 2022. pp. 358-372 (IFIP Advances in Information and Communication Technology).

@inproceedings{886da1763b7143649f47b89a483cedfa,

title = "Review of PPX Business Models: Adaptability and Feasibility of PPX Models in the Equipment Manufacturing Industry",

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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author = "Uski, \{Veli Matti\} and Kukkamalla, \{Prasanna Kumar\} and Hannu K{\"a}rkk{\"a}inen and Karan Menon and Sameer Mittal and Khan, \{Muztoba Ahmad\} and Thorsten Wuest",

note = "JUFOID=84293 Funding Information: This work was part of funding received by Business Finland 33250/31/2020-BF/Future Spaces. Publisher Copyright: {\textcopyright} 2022, IFIP International Federation for Information Processing.; INTERNATIONAL CONFERENCE ON PRODUCT LIFECYCLE MANAGEMENT ; Conference date: 01-01-1900",

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language = "English",

isbn = "9783030943349",

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Uski, VM, Kukkamalla, PK, Kärkkäinen, H, Menon, K, Mittal, S, Khan, MA & Wuest, T 2022, Review of PPX Business Models: Adaptability and Feasibility of PPX Models in the Equipment Manufacturing Industry. in O Canciglieri Junior, F Noël, L Rivest & A Bouras (eds), Product Lifecycle Management. Green and Blue Technologies to Support Smart and Sustainable Organizations: 18th IFIP WG 5.1 International Conference, PLM 2021, Curitiba, Brazil, July 11–14, 2021, Revised Selected Papers, Part I. IFIP Advances in Information and Communication Technology, vol. 639, Springer, pp. 358-372, INTERNATIONAL CONFERENCE ON PRODUCT LIFECYCLE MANAGEMENT, 1/01/00. https://doi.org/10.1007/978-3-030-94335-6_26

Review of PPX Business Models: Adaptability and Feasibility of PPX Models in the Equipment Manufacturing Industry. / Uski, Veli Matti; Kukkamalla, Prasanna Kumar; Kärkkäinen, Hannu et al.
Product Lifecycle Management. Green and Blue Technologies to Support Smart and Sustainable Organizations: 18th IFIP WG 5.1 International Conference, PLM 2021, Curitiba, Brazil, July 11–14, 2021, Revised Selected Papers, Part I. ed. / Osiris Canciglieri Junior; Frédéric Noël; Louis Rivest; Abdelaziz Bouras. Springer, 2022. p. 358-372 (IFIP Advances in Information and Communication Technology; Vol. 639).

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › Scientific › peer-review

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T2 - INTERNATIONAL CONFERENCE ON PRODUCT LIFECYCLE MANAGEMENT

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AU - Kukkamalla, Prasanna Kumar

AU - Kärkkäinen, Hannu

AU - Menon, Karan

AU - Mittal, Sameer

AU - Khan, Muztoba Ahmad

AU - Wuest, Thorsten

N1 - JUFOID=84293 Funding Information: This work was part of funding received by Business Finland 33250/31/2020-BF/Future Spaces. Publisher Copyright: © 2022, IFIP International Federation for Information Processing.

PY - 2022

Y1 - 2022

N2 - 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.

AB - 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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KW - NOBM

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KW - Pay-per-x

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DO - 10.1007/978-3-030-94335-6_26

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ER -

Uski VM, Kukkamalla PK, Kärkkäinen H, Menon K, Mittal S, Khan MA et al. 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, editors, Product Lifecycle Management. Green and Blue Technologies to Support Smart and Sustainable Organizations: 18th IFIP WG 5.1 International Conference, PLM 2021, Curitiba, Brazil, July 11–14, 2021, Revised Selected Papers, Part I. Springer. 2022. p. 358-372. (IFIP Advances in Information and Communication Technology). doi: 10.1007/978-3-030-94335-6_26

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

Abstract

Publication series

Conference

Funding

Keywords

Publication forum classification

ASJC Scopus subject areas

Access to Document

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