Abstract
The notable increase of average life expectancy, especially in developed countries, has resulted in a dramatic increase of aging population within the past decade. As a consequence, a better healthcare system is required to serve this aging population both in terms of healthcare service and medical products in order to provide them a better quality of life. To this end, customized medical products which are designed based on individual requirements of each patient have a considerable impact on the treatment process and quality of life. The emerging innovative manufacturing technologies facilitate development and production of customized medical products. Thanks to the new technologies such as additive manufacturing, it is even possible to produce the customized medical products efficiently in the hospitals in patients proximity, which would transform the role of the hospital from a user to a producer of the medical products. In the other words, the hospital would extend its core business from a healthcare service provider to a healthcare product manufacturer and service provider. Accordingly, a new business model is required to facilitate and support such a shift by focusing on both product and service perspectives and hence taking into account an integrated product-service system approach. This chapter discusses innovative product-service business models based on customized manufacturing of medical products exploiting the potential of innovative technologies and the exchange of innovative products-services between the hospital (as the manufacturer) and the machinery producers (as the supplier). A structured business model design approach is presented, enabling the generation of different alternatives through different configurations of business model building blocks. Each alternative differs from another in terms of level of servitization and intensity of the relationship between customer and supplier. Eventually the best-fit business model can be generated and implemented by the hospital, based on the potential benefits and challenges that each alternative entails. The latter aspect will be also covered in the chapter through having a deeper look on pros and cons of each business model alternative.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Aurich, J. C., Fuchs, C., & Wagenknecht, C. (2006). Life cycle oriented design of technical product-service systems. Journal of Cleaner Production, 14(17), 1480–1494.
Baines, T. S., Lightfoot, H. W., Evans, S., Neely, A., Greenough, R., Peppard, J., et al. (2007). State-of-the-art in product-service systems. Proceedings of the Institution of Mechanical Engineers, Part B. Journal of Engineering Manufacture, 221, 1543–1552.
Barquet, A. P. B., de Oliviera, M. G., Amigo, C. R., Cuhna, V. P., & Rozenfeld, H. (2013). Employing the business model concept to support the adoption of product–service systems (PSS). Industrial Marketing Management, 42, 693–704.
Bourell, D. L., Leu, M. C., & Rosen, D. W. (2009). Roadmap for additive manufacturing – Identifying the future of freeform processing. Austin, TX: The University of Texas.
Brezet, J. C., Bijma, A. S., Ehrenfeld, J., & Silvester, S. (2001). The design of ecoefficient services. Delft, Netherlands: TU Delft for the Dutch Ministry of Environment.
Bukh, P. N., & Nielsen, C. (2011). Understanding the health care business model: The financial analysts’ point of view. Journal of Health Care Finance, 37(2), 8–26.
Chen, D. Q., Preston, D. S., & Xia, W. (2013). Enhancing hospital supply chain performance: A relational view and empirical test. Journal of Operations Management, 31, 391–408.
Chen, S. H., Wen, P. C., & Yang, C. K. (2014). Business concepts of systemic service innovations in e-Healthcare. Technovation, 34(9), 513–524.
Dobrzykowski, D., Deilami, V. S., Hong, P., & Kim, S. C. (2014). A structured analysis of operations and supply chain management research in healthcare (1982–2011). International Journal of Production Economics, 147, 514–530.
Durugbo, C., & Riedel, J. C. K. H. (2013). Readiness assessment of collaborative networked organisations for integrated product and service delivery. International Journal of Production Research, 51(2), 598–613.
Freeman, R. E., & Reed, D. L. (1983). Stockholders and stakeholders: A new perspective on corporate governance. California Management Review, 25(3), 88–106.
Gaiardelli, P., Resta, B., Martinez, V., Pinto, R., & Albores, P. (2014). A classification model for product-service offerings. Journal of Cleaner Production, 66, 507–519.
Gibson, I., & Srinath, A. (2015). Simplifying medical additive manufacturing: Making the surgeon the designer. Procedia Technology, 20, 237–242.
Global AgeWatch. (2016). Help age International. Accessed April 30, 2016, from http://www.helpage.org
Goedkoop, M. J., van Halen, J. G., te Riele, H., & Rommens, P. J. M. (1999). Product service systems, ecological and economic basics. The Hague, Netherlands: Ministry of Environment.
Hopkinson, N., & Dickens, P. M. (2003). Analysis of rapid manufacturing – Using layer manufacturing processes for production. Proceedings of the Institution of Mechanical Engineers, Part C. Journal of Mechanical Engineering Science, 217, C1:31–39.
Ingole, D. S., Kuthe, A. M., Thakare, S. B., & Talankar, A. S. (2009). Rapid prototyping – A technology transfer approach for development of rapid tooling. Rapid Prototyping Journal, 15(4), 280–290.
James, P., Slob, A., & Nijhuis, L. (2001). Environmental and social well being in the new economy. In Sustainable services e an innovation workbook. Bradford: University of Bradford.
Jin, G. Q., Li, W. D., & Gao, L. (2013). An adaptive process planning approach of rapid prototyping and manufacturing. Robotics and Computer-Integrated Manufacturing, 29, 23–38.
Jin, Y., Plott, J., Chen, R., Wensman, J., & Shih, A. (2015). Additive manufacturing of custom orthoses and prostheses – A review. Procedia CIRP, 36, 199–204.
Kindstrom, D. (2010). Towards a service-based business model – Key aspects for future competitive advantage. European Management Journal, 28, 479–490.
Kruth, J. P., Levy, G., Klocke, F., & Childs, T. H. C. (2007). Consolidation phenomena in laser and powder-bed based layered manufacturing. CIRP Annals, 56(2), 730–759.
Lay, G., Schroeter, M., & Biege, S. (2009). Service-based business concepts: A typology for business-to-business markets. European Management Journal, 27(6), 442–455.
Lehoux, P., Daudelin, G., Williams-Jones, B., Denis, J. L., & Longo, C. (2014). How do business model and health technology design influence each other? Insights from a longitudinal case study of three academic spin-offs. Research Policy, 43, 1025–1038.
Lindemann, C., Jahnke, U., Moi, M., & Koch, R. (2012, August 6–8). Analyzing product lifecycle costs for a better understanding of cost drivers in additive manufacturing (pp. 177–188). Proceedings of the 2012 Solid Freeform Fabrication Symposium, Austin, TX.
Lohfeld, S., McHugh, P., Serban, D., Boyle, D., O’Donnell, G., & Peckitt, N. (2007). Engineering Assisted SurgeryTM: A route for digital design and manufacturing of customised maxillofacial implants. Journal of Materials Processing Technology, 183, 333–338.
Manzini, E., & Vezzoli, C. (2003). A strategic design approach to develop sustainable product service systems: Examples taken from the ‘environmentally friendly innovation’ Italian prize. Journal of Cleaner Production, 11(8), 851–857.
Marques, P., Cuhna, P. F., Valente, F., & Leitao, A. (2013). A methodology for product-service systems development. Procedia CIRP, 7, 371–376.
Meier, H., Roy, R., & Seliger, G. (2010). Industrial product-service systems – IPS2. CIRP Annals – Manufacturing Technology, 59, 607–627.
Melgoza, E. L., Serenio, L., Rosell, A., & Ciurana, J. (2012). An integrated parameterized tool for designing a customized tracheal stent. Computer-Aided Design, 44, 1173–1181.
Mont, O. (2002). Clarifying the concept of product service systems. Journal of Cleaner Production, 10(3), 237–245.
Nelson, M. R., & Sen, R. (2014). Business rules management in healthcare: A lifecycle approach. Decision Support Systems, 57, 387–394.
Osterwalder, A., & Pigneur, Y. (2010). Businessmodel generation: A handbook for visionaries, game changers, and challengers. Hoboken, NJ: Wiley.
Pourabdollahian, G., & Copani, G. (2014). Proposal of an innovative business model for customized production in healthcare. Modern Economy, 5(13), 1147–1160.
Pourabdollahian, G., & Copani, G. (2015). Development of a PSS-oriented business model for customised production in healthcare. Procedia CIRP, 30, 492–497.
Rani, N. A., Baharum, M. R., Akbar, A. R. N., & Nawawi, A. H. (2015). Perception of maintenance management strategy on healthcare facilities. Procedia- Social and Behaviorial Sciences, 170, 272–281.
Ruffo, M., Tuck, C., & Hague R. J. M. (2006). Cost estimation for rapid manufacturing – Laser sintering production for low to medium volumes. Proceedings of the Institution of Mechanical Engineers, Part B. Journal of Engineering Manufacture, 1417–1427.
Schröder, M., Falk, B., & Schmitt, R. (2015). Evaluation of cost structures of additive manufacturing processes using a new business model. Procedia CIRP, 30, 311–316.
Sun, W., & Lal, P. (2002). Recent development on computer aided tissue engineering — A review. Computer Methods and Programs in Biomedicine, 67(2), 85–103.
Tukker, A. (2004). Eight types of product-service system: Eight ways to sustainability? Business Strategy and the Environment, 13(4), 246–260.
Tukker, A., & Tischner, U. (2006). Product-services as a research field: Past, present and future. Reflections from a decade of research. Journal of Cleaner Production, 14(17), 1552–1556.
van Limburg, A. H. M., & van Gemert-Pijnen, J. (2010, February 10–15). Towards innovative business modeling for sustainable eHealth applications. 2010 Second International Conference on eHealth, Telemedicine, and Social Medicine, St. Maarten, Nethelands Antilles.
Velamuri, V. K., Neyer, A. K., & Möslein, K. M. (2011). Hybrid value creation: A systematic review of an evolving research area. Journal für Betriebswirtschaft, 61, 3–35.
Weller, C., Kleer, R., & Piller, F. T. (2015). Economic implications of 3D printing: Market structure models in light of additive manufacturing revisited. International Journal of Production Economics, 164, 43–56.
WHO. (2014a). UN Human Development Report 2005. United Nations Development Programme, World Health Organization (WHO), New York.
WHO. (2014b). WHO life expectancy. WHO. Retrieved April 10, 2016.
Yip, M. H., Phaal, R., & Probert, D. R. (2015). Characterising product-service systems in the healthcare industry. Technology in Society, 43, 129–143.
Zdravkovic, M., Trajanovic, M., Stojkovic, M., Mišic, D., & Vitkovic, N. (2012). A case of using the Semantic Interoperability Framework for custom orthopedic implants manufacturing. Annual Reviews in Control, 36, 318–326.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2017 Springer International Publishing Switzerland
About this chapter
Cite this chapter
Pourabdollahian, G., Copani, G. (2017). A New Perspective of Product-Service Business Models for Customized Manufacturing in Healthcare. In: Pfannstiel, M., Rasche, C. (eds) Service Business Model Innovation in Healthcare and Hospital Management. Springer, Cham. https://doi.org/10.1007/978-3-319-46412-1_6
Download citation
DOI: https://doi.org/10.1007/978-3-319-46412-1_6
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-319-46411-4
Online ISBN: 978-3-319-46412-1
eBook Packages: Business and ManagementBusiness and Management (R0)