A performance readiness assessment model for product–service system transition to mitigate implementation risks

Readiness assessment models and tools have been heralded as critical solutions for delivering successful product–service system (PSS) business models. However, the available contributions of readiness assessment models do not consider the performance readiness of the product and service, while managing risk using objective data considering a target PSS business model performance in the early design phases of PSS development. This can lead to PSS failures and high costs. The goal of this paper is to propose a practical risk management model for assessing the performance readiness of products and services in PSS. To achieve this goal, design science research methodology is integrated with content analysis of the literature. The proposed model considers three dimensions for managing product and service risks: risk identification, risk measurement and analysis, and evaluation of risk mitigation options. The results of validation in the case of an Electrolyser manufacturer indicate that the model is applicable and useful in assessing current performance and, exploring specific actions that satisfy cost and performance requirements, reduce risk and increase the chances of successful PSS implementation in practice