PSS models are emerging as a means to enable collaborative consumption of both products and services, with the aim of pro-environmental outcomes.
[3] Faced with shrinking markets and increased commoditization of their products, these firms saw service provision as a new path towards profits and growth.
[4] While not all product service systems result in the reduction of material consumption, they are more widely being recognized as an important part of a firm's environmental strategy.
For example, Mont defines PSS as "a system of products, services, supporting networks, and infrastructure that is designed to be competitive, satisfy customers' needs, and have a lower environmental impact than traditional business models.
"[5] Mont elaborates on her definition as follows: A PSS is a pre-designed system of products, services, supporting infrastructures, and necessary networks that is a so-called dematerialized solution to consumer preferences and needs.
[9] For example, John Deere developed Agric Service business based on the customers' worries on soil related issues.
[19] This means that the provider of "servicizing solutions" may get paid by the unit-of-service (or product function) delivered, as opposed to the (more traditional) unit-of-products sold.
The research has focussed on a PSS as system comprising tangibles (the products) and intangibles (the services) in combination for fulfilling specific customer needs.
[21] van Halen et al. state that the knowledge of PSS enables both governments to formulate policy with respect to sustainable production and consumption patterns, and companies to discover directions for business growth, innovation, diversification, and renewal.