Value creation and retention through re-servitization: Product service system for prescription medication dispensing in homecare

Vesa Tiitola, Jouni Lyly-Yrjänäinen, Mika Apell, Mikko Rönkkö and Jan Holmström

Technovation, 2025, vol. 140, issue C

Abstract: Product-service systems (PSS) typically assume that users determine the value of the service and take responsibility for deciding when to start and discontinue use. However, without visibility to organizational value such as fleet-level operational gains, PSS users are ill-equipped to make such decisions. In this study, we examine a PSS for dispensing prescription medication to memory-impaired homecare clients of a municipal healthcare organization. Robot dispensers provided by a PSS operator automate medication adherence duties, streamlining workflows and reducing nursing staff needed during morning peaks. However, neither the memory-impaired client nor the homecare provider have visibility to the service's value. Collaborating with the operator and the healthcare organization, we discovered that the main problem was the value that was lost when the dispenser was deployed and redeployed too late. As a solution design, we propose detection of lost value opportunity and dynamic capture of the available value using smart and connected product technology for the robotic dispenser and its simpler precursor alternative. With these changes, the PSS operator can continuously re-servitize, i.e. use the PSS to actively guide the deployment and redeploy the robotic dispensers for improved value impact. Our contribution to the innovation management is highlighting the role of re-servitization in unlocking the potential operational value of a PSS in dynamic environments, such as healthcare.

Keywords: Circular economy; Value retention options; Product service system; Re-servitization; Smart product; Design science research (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:techno:v:140:y:2025:i:c:s0166497224002128

DOI: 10.1016/j.technovation.2024.103162

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