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Procedia CIRP 40 (2016) 524 – 529

13th Global Conference on Sustainable Manufacturing - Decoupling Growth from Resource Use

Sustainable product service systems – from concept creation to the detailing

of a business model for a bicycle sharing system in Berlin
Ana Paula Barqueta, Johannes Seidela,*, Tom Bucherta, Mila Galeitzkea, Sabrina Neugebauerb,
Nicole Oertwiga, Henrique Rozenfeldc, Günther Seligera
a
Institute for Machine Tools and Factory Management, Technische Universität Berlin, Pascalstrasse 8-9, 10587 Berlin, Germany
b
Institute for Environmental Technology, Technische Universität Berlin, Str. des 17. Juni 135, 10623 Berlin, Germany
c
Department of Industrial Engineering, University of Sao Paulo, Av. Trabalhador Sao Carlense 400, 13566-590 Sao Carlos, SP, Brazil

* Corresponding author. Tel.: +49 (0)30/314-75835; fax: +49 (0)30/314-22759. E-mail address: Seidel@mf.tu-berlin.de

Abstract

To develop a business model oriented to sustainability, sustainability aspects should already be taken into account at the planning stages, when
strategies, ideas, opportunities and concepts are identified and created. However, there is a lack of methods to assist the creation of sustainable
business models. To cope with this challenge, a method named Configurator of product-service system (PSS) proposals was developed in order
to support companies to create business models for selling functionality instead of product property. Through the application of this method
together with the scenario planning technique, a product concept was transformed into a product-service system business model. For this
purpose, the multifunctional team responsible for the creation of this concept utilized the method to develop a business model for Pedelec
(pedal electric cycle) inserted in a sharing system and taking into account the future development of the city of Berlin.

©
© 2016
2016 The
The Authors.
Authors. Published by Elsevier
Published by Elsevier B.V.
B.V. This is an open access article under the CC BY-NC-ND license
(http://creativecommons.org/licenses/by-nc-nd/4.0/).
Peer-review under responsibility of the International Scientific Committee of the 13th Global Conference on Sustainable Manufacturing.
Peer-review under responsibility of the International Scientific Committee of the 13th Global Conference on Sustainable Manufacturing
Keywords: sustainability; business models; product-service system; scenarios

1. Introduction To cope with these challenges, different approaches are

The challenge for sustainable development addressed by
the Brundtland Commission in their report Our Common
Future from 1987 has not yet been solved. Strategies for
leaving the destructive path of maintaining or increasing
human well-being, which directly couples with increased
resource consumption, have to be found and implemented [1].
Currently, more people live in urban areas than in rural
areas. A clear growth trend is visible for the urbanization
process leading from around 54% of all people living today in
urban areas to rise to a predicted 66% of the global population
in 2050 [2]. Today around 70% of energy related carbon
emissions originate in cities, leading to a huge potential for
concentrated greenhouse gas (GHG) reduction [3]. 24% of
total GHG emissions in Europe and North America account to
the transportation sector [4] and further rising GHG emissions
from the transportation sector are to be expected [5].
being suggested and developed. The goal of this research is to
present the development of sustainable urban mobility based
solution, from the concept generation to the creation of a
business model for such a scheme. Improving the efficiency of
urban transport and reducing the negative effects of it, while
taking into account technological, socio-economic and urban
development trends is essential for the development and
attractiveness of urban centers [6].
2. Literature Review
2.1. Urban mobility
During the last decades urban transportation has become
more diverse and cycling has gained a significant share in the
modal split of many European cities, which also increased the
creation of bike-sharing systems. These systems are

2212-8271 © 2016 The Authors. Published by Elsevier B.V. This is an open access article under the CC BY-NC-ND license
(http://creativecommons.org/licenses/by-nc-nd/4.0/).
Peer-review under responsibility of the International Scientific Committee of the 13th Global Conference on Sustainable Manufacturing
doi:10.1016/j.procir.2016.01.127
 Ana Paula Barquet et al. / Procedia CIRP 40 (2016) 524 – 529
characterized by distributed networks of public bicycles used
for trips into transit networks. This system is being embraced
by a growing amount of people as a manner to enhance
mobility, reduce automotive congestion and air pollution, and
stimulate healthy activities and local businesses development
[7].
While basic bicycle sharing systems exist since more than
50 years, popularity increased significantly in the last decade
also due to information and communication technology (ICT)
allowing bicycles to be picked up and returned not only in
fixed stations. Today such 3rd generation bicycle sharing
systems with ICT exist in around 800 cities with a fleet of
bicycles exceeding 800,000 bicycles [8].
Potential 4th generation innovations include movable and
solar powered docking stations, electric bicycles and
applications for smart phones, e.g. real time availability. The
introduction of electric bicycles is pointed out as the most
significant of these innovations in terms of customer and
business attractiveness. Examples of electric bicycles are
Pedelecs, bicycles supported with electrical propulsion while
pedaling, and E-Bikes, which provide electric power without
pedaling [9].
2.2. Sustainable Business models and Product Service
Systems
Business models address how the firm defines its
competitive strategy through the design of products and
service offered to the market, how it charges for them, how
much it costs to produce and deliver, how it differentiates
itself from competitors by the value proposition, and how the
company integrates in the value chain with other enterprises
[10].
The Business model concept is being recognized as a key
concept to integrate social and environmental sustainability in
the industrial system. In this sense, sustainable business
models are business models that increases competitive
advantage through superior value delivered to clients that
contributes to a sustainable development of the company and
society [11].
Types of sustainable business models presented in the
literature are closed-loop business models [12], Natural
Capitalism [13], social enterprises [14], Product Service
Systems [15, 16] and new economy concepts (e.g. Blue
Economy [17]).
Fig. 1: Representation of the Configurator of PSS proposals.
525
Product Service Systems (PSS) are a type of sustainable
business models, which tries not only to improve the financial
performance but also has the potential to minimize the
environmental impact by closing material cycles, reducing
consumption through alternative scenarios of product use and
increasing overall resource productivity [18].
Boehm and Thomas [19] states that PSS is an integrated
bundle of products and services which main aim is to create
utility to customers and generate value as the focus is to sell
functionality instead of ownership [20].
3. Methodology
The path for the creation of a sustainable solution for the
urban mobility in Berlin was developed through the
application of two methods: scenarios planning, for the
generation of a concept, and the Configurator of PSS
proposals, for the development of a PSS business model.
The first method, scenarios planning, is a tool to describe
possible situation in the future and to which various
approaches and goals exist, e.g. explorative scenario [21]. For
Gausemeier, an explorative scenario is based on a complex
net of impact factors to create consistent pictures of the future
used for strategic planning processes [22]. This approach can
be used to develop surrounding field scenarios to describe the
possible development of a city or larger geographic area. In an
improvement of the aforementioned approach, sustainability
criteria are utilized to create technology scenarios which
consider economic, social and environmental criteria and can
be used to develop technical systems as a combination of
different system elements [23]. Therefore, by applying
scenarios planning for the development of urban mobility in
Berlin, a concept has been generated, which took into account
sustainability criteria.
In order to assist in the definition of a business model for
this concept, a second method was applied, the Configurator
of PSS proposal [24, 25]. This method, demonstrated in
Figure 1, aims at supporting the creation of PSS business
proposals during the innovation planning. It comprises 8 steps
that should be followed to improve a current business through
PSS or to start a new business by creating a PSS proposal.
The steps of the Configurator, adapted from the canvas
business model [26] are:
526 Ana Paula Barquet et al. / Procedia CIRP 40 (2016) 524 – 529

Step 1. Understand your business model: addresses the presents examples of bicycle designs that fulfill the specific
analysis of the current business model to facilitate the requirements in each surrounding field scenario.
decision of adopting PSS in this one or creating a new
business for PSS.
Step 2. Configure Customer Segment: comprises the
information about the market that should be attracted by the
value proposition. Therefore, information about current and
potential clients should be considered.
Step 3. Configure Value Proposition: deals the
Fig. 3: (a) design 1; (b) design 2; (c) design 3.
combinations of products and services that will be offered to
the client and the benefits delivered through them.
The scenario 1 “Economy on bicycles” was chosen to be
Step 4. Configure Customer Relationship: presents the
detailed as it embraces similar characteristics with trends and
different options of relating with clients on the different
programs currently planned and also expected for the future of
phases of the PSS lifecycle;
bicycle mobility development (See [6, 7, 9, 27]).
Step 5. Configure Business Processes and Actors:
Surrounding field scenario 1 describes an environment in
encompasses the processes and activities of the PSS network,
which the share of bicycles in the modal split is increasing,
the actors that should perform some of the processes of the
pushed by health consciousness and eco-friendly attitude in
PSS network and the manner the PSS offer should be
the broad public. In addition prices for conventional
delivered to the customer;
transportation are rising, what makes sharing systems more
Step 6. Configure Resources: covers the different assets
attractive.
required to run the business, such as knowledge, technology,
Requirements defined for the bicycle design are [28]:
competence and human resources;
x An integral lightweight frame
Step 7. Configure Revenue streams: presents possibilities
x A light weight steel frame is chosen due to easy recycling
of how to earn money from different types of value
x Additional seat to transport a second person
proposition;
x Electric motor to increase range and usability while
Step 8. Configure Cost Structure: encompasses the different
pedaling
elements of the cost structure.
x The battery can be charged by recuperation from breaking
and the shock absorbers as well as a small solar panel
4. Sustainable solution for urban mobility
x Wireless communication and connect ability with a smart
phone is enabled.
4.1 Generation of concept though scenarios planning
Together with the product development team, these first
requirements were discussed and other ones were added to
The developed surrounding field scenarios examine the
create a concept of the Pedelec [29]. Additional requirements
field of urban mobility in Berlin. Taking into account factors
are:
such as the overall economic development, infrastructure
x Charging while standing
investments and societal changes, especially for mobility
x Improved ergonomics of the seating arrangement
preferences, three future scenarios were created. They build
x Modularization aspects to adapt the product to different
framework conditions for the development and design of
usage scenarios
bicycles as well as for service systems. While one of the three
x Advanced concept for user´s interaction. For instance, by
scenarios depicts a rather unfavorable development, the first
providing information about energy, health and correct
one shows a very supporting infrastructure development for
handling/maintenance of the bike.
bicycle mobility. In addition, the second scenario shows an
overall moderate development of the economic environment,
4.2 From the concept of the product to the business proposal
infrastructure and public attitude. Figure 2 shows
representations of the different scenarios.
After the generation of the concept with the requirements
previous mentioned, the research team responsible for the
development of this sustainable solution applied the
Configurator of PSS proposals via workshops. This research
team is composed by:

Table 1. Multifunctional team working in the Pedelec business model.

Researcher Areas and topics of research
A Product development
B Manufacturing and
assembly
Fig. 2: (a) scenario 1 “Economy on bicycles”; (b) scenario 2 “Wild east”; (c) C Knowledge
scenario 3 “Business as usual”. management
D Modelling
E Sustainability
Based on these surrounding field scenarios suitable assessment
technology scenarios for bicycles were created. Figure 3
Sustainable product development
Value creation networks
Tangible and intangible resources
Process modelling
Applied Life Cycle Sustainability
Assessment, Recycling.
 Ana Paula Barquet et al. / Procedia CIRP 40 (2016) 524 – 529 527

Following, specific parts of the business model created by

the research team are presented.
First decisions made by the research group concern the
customer segment to be reached. Therefore, the segments
were selected and their profile characterized (step 2 of the
method, see Figure 1).
x Customer segment 1 covers academics from the Technical
University (TU) of Berlin, characterized by: low income,
necessity of transportation in different times of the day,
wish to be in different places fast.
x Customer segment 2 is composed by professors and
employees of the university. This group concerns more Fig. 4. CAD model of the Pedelec.
about the availability and reliability of the transport, like to
be punctual, want to transport bags, boxes, and kids, like The environmental aspects of the Pedelec have been also
comfort. addressed in the configuration of the value proposition (step 3
The research team working in the Pedelec business model of the method). Table 3 shows these aspects and how to reach
is part of the customer segment. As the business model is them.
planned to be implemented in small scale for trial purposes,
Table 3. Environmental aspect to be reached by the Pedelec.
these customer segments were selected to facilitate the
tracking and observation about how the trial phase will work Environmental How to reach?
aspect
for, later on, be implemented in a larger scale. Reduced energy By applying end-of-life strategies (reutilization of value
To attend both customers, benefits that should be offered to consumption embedded on the used products)
them in the value proposition were deployed from their By creating charging options:
via solar panels at home through mobile solar charging
profile. Yet, product characteristics and services elements that station
will assist in reaching the benefits are highlighted. It is also via solar panels on the ride while mounted on the rack
indicated if they were already considered in the concept. via “charging while standing” (the pedals can be
connected to a generator)
Table 2 demonstrates examples of the benefits developed. By applying end-of-life strategies (reutilization of value
Reduced
material embedded on the used products)
Table 2. Examples of benefits offered by the Pedelec. consumption By utilizing material as lightweight as possible
Benefit How to reach Customer Needs In the By selecting material according to results from the
the benefit segment attended concept? LCSA (lifecycle sustainable assessment)
(requirement)
Transport Strong frame, Meets Want to Yes One of the most relevant issues is the creation of contracts
goods and modularity needs of transport kids,
people aspects customer bags, boxes, to guarantee the proper customer relationship (step 4 of the
segment 2 Space that fits method). For this business model, two types of contracts were
children’s seat defined to be arranged with customers:
or storage area
Comfort Ergonomic Face the Like comfort Yes
The first type of contract is based on the availability of the
aspects of the resistance (normally use Pedelecs in the TU Berlin. In that case, the institution is the
sit (behaviour cars) main contractor for the Pedelec. With an upfront installation
change) of
fee, it gains access to Pedelecs. Stations should be built on- or
customer
segment 2 off-campus. An annual fee for the rental of Pedelecs ensures
Comfort Cover to Meets Do not want to No the availability of Pedelecs in the TU-Berlin network.
protect the needs of get wet when The second type of contract is based on the period of
cyclist customer it is raining
segment 2 product-service use with the customers. They should pay only
Availability Ensure return Meets Require No based on period of time they stay with the Pedelec (incl. small
system (user needs of transportation overnight fees if the Pedelec is taken home). This is crucial as
returns the customer in different
bike on the segment 1 times of the customer group 2 needs to be able to go to and from work.
spots) and 2 day, want to The user is able to redeem percentages/free minutes/km for
be sure about certain user integration such as:
the availability
of the
x User charges Pedelec through activity (Usage of battery
transport power < charge of battery during usage)
x User performs maintenance on Pedelec
By developing the benefits based on the customer segment x Optional Top-Users (usage / distance) are awarded.
profile, new requirements emerged, such as a cover for the Therefore, the costs are shared by institution and
Pedelec and a system to stimulate customers to return the customers.
bicycles after use, e.g. not take them home. Figure 5 presents the processes that should be performed
Figure 4 presents the first CAD model of the Pedelec and the actors of the PSS network responsible for them (step 5
considering the requirements defined after the characterization of the method). As demonstrated, most of the processes should
of the costumer segment. be performed in-house.
528 Ana Paula Barquet et al. / Procedia CIRP 40 (2016) 524 – 529

Risks identified to implement this business are mainly the

development risk and financial risk. In order to reduce the
risks and go to the implementation phase, examples of key
decisions that still need to be taken are:
x Number of Pedelecs to be produced
x Number, design and location of dock stations
x Price to charge customers (both annually and per period of
use);
Steps 7 and 8, which address the financial aspects of the
business model, are under development. For that purpose, a
feasibility study in being carried out and a financial tool being
created.
Fig. 5. Types of processes and actors responsible for them.

5. Final Considerations
To support the execution of some process, three actors are
required:
A sharing system business model for a Pedelec was
x IT supplier is responsible for the development of the IT
developed taking into account the possible future
system that will collect and process the information
development of the city of Berlin. This business model could
gathered both through the sensors on Pedelec and from the
be defined by applying two innovative methods, the scenario
smartphones of the customers.
planning technique improved with sustainability criteria and
x A communication company is responsible for the
the Configurator of PSS proposals. Both methods can be used
marketing activities
together to assist the execution of steps from the idea creation
x Parts supplier for acquisition of parts to produce the
and concept generation until the development of the business
Pedelec.
model.
Regarding the resources required to start the business (step
Through the creation of this business model, the research
6 of the method), Table 4 presents examples of intangible type
team could get aware about points in which they have to
of resources. The inclusion of intangible resources stems from
concentrate and acquire more knowledge and information in
the increasing importance of intellectual capital and is here
order to reduce risks and reach a future successful business
based on a capital approach that considers tangible and
model. The proposal of the business model covers the results
intangible capital in regard to performance and sustainability
from different projects of the Collaborative Research Center
aspects [30].
(CRC) 1026 “Sustainable Manufacturing – Shaping Global
Table 4. Resources required to implement the business. Value Creation” that work on the Pedelec for demonstration
purposes. Therefore, this business model contributed to create
Type of Detailing Purpose
intangible a common and systematic overview between the researchers
resources and to identify gaps in knowledge.
Human Professional To guarantee product quality Currently, the financial feasibility of the business model
capital competence:
Competencies in the
and the key decisions created to reduce the risks are being
production processes investigated.
Human Professional To guarantee product quality Next steps include the extension of the method, e.g. (i) to
capital competence:
be applied not only for one company but in a network of
Certification and
training according to enterprises that is part of an innovation system and (ii) to
employees functions include not only product-service systems but also other types
Human Communication To enable customers to repair of sustainable business models.
capital competence: the bike
Implement training for
help-for-self-help Acknowledgements
Structural Explicit knowledge: Automatically detect critical
capital Software for parameters.
monitoring of bicycles Locate and reserve a bicycle We extend our sincere thanks to all who contributed to
near the user. preparing this paper. Especially, we thank the German
Structural Explicit knowledge: The user is guided through the Research Foundation for the funding of the Collaborative
capital Software for interactive specific repair tasks by a system
learning system to use the necessary tools in
Research Centre 1026 “Sustainable Manufacturing – shaping
order to “do it yourself” global value creation” (SFB 1026/1 2012). The responsibility
Structural Explicit knowledge: To support the selection of for the content of this publication lies with the authors.
capital Software for lifecycle material utilized to develop the
sustainability Pedelec
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