Transfer of Industrial Product-service System Specific Risk Effects to Value Network Partners - Concept for an Integrated Risk Assessment and Distribution

Nowadays, companies increasingly provide industrial product-service systems (IPS2) to shift their focus on actual customer requirements and thereby differentiate themselves from an increasing competition. IPS2 require various competencies and resources, which lead to their provision by corporate value networks (CVN) rather than standalone companies. IPS2 are further provided through innovative business models in which companies assume responsibility over customer processes or guarantee certain outcomes. Together with the application of CVN, the implementation of these business models thereby increases the risk level of the IPS2 providing company. Due to its inability to assess and mitigate these risks, the focal company in return remains hesitant to implement IPS2. In this paper, a methodology for the integrated assessment and distribution of IPS2 specific risk in the context of CVN is proposed. The methodology enables the reduction of significant risks of IPS2 projects through a transfer of risk effects to partner companies with the ability to reduce them. The presented methodology consists of three successive steps: Process initiation, risk assessment and risk distribution.