This research aims to explore and propose a more effective management of rail and road infrastructure and the possibility of a more resource-efficient road and rail infrastructure by applying business models based on performance and a life-cycle perspective. There is a lack of efficiency in the Swedish rail and road infrastructure industries - at the same time as the availability of the rail tracks and roads is essential. Rail and road infrastructure have long lifetimes, around 40-60 years, and during these decades regular maintenance and reconstruction are needed to ensure proper function. Large amounts of resources are required to construct the infrastructure, and the overall environmental pressure depends substantially on this. This research is largely based on interviews conducted with the buyer, contractors and design consultants for rail and road infrastructure in Sweden. Literature reviews have been conducted to develop the framework needed to analyze the empirical findings. This research contributes by building on theory in areas such as Integrated Product Service Offerings (IPSOs) and eco-design, and this abstract presents a brief summary of the overall conclusions. Several challenges for rail and road infrastructure in Sweden have been identified, such as the lack of information and knowledge transfer between different projects and actors. This is due to e.g. the use of traditional short-term contracts and conservative cooperate cultures, creating sub-optimizations in management. Increased collaboration, through e.g. partnering, seems to be a promising way to increase the information and knowledge transfer between actors by increasing trust and interaction. In this way, management would be more effective, and by involving contractors in the design phase, more efficient technical solutions could be developed and used. Additionally, increased involvement by the design consultants and an iterative information loop between design, construction and maintenance could also be beneficial. The research indicates that increased cooperation increases trust. In this way, there is a possibility to remove the detailed requirements that prevent new ways of working. Rail and road infrastructure have characteristics, such as the resources used and the importance of availability, that are well-suited for IPSOs. This performance-based business model with a life-cycle perspective provides incentives to optimize the use of resources and provide a holistic view for management that is lacking today for rail and road infrastructure. However, a long-term contract such as an IPSO creates uncertainties. The actors are risk-averse, which is an obstacle in the development of new business models and contract forms. Most of the risks and uncertainties identified are due to lack of experience. This implies that an implementation of IPSOs will have a steep learning curve. Additionally, risk allocation between the actors is important for effective management: too much risk for the suppliers will make them reluctant in developing new solutions, and they will use a risk premium to cover up for the risk.

Combining products and services into Product-Service Systems (PSS), which are often owned and even operated by the company offering them, is seen as an important element of conducting more sustainable business. The prospective environmental benefits of PSS lie mainly in the improved resource- and operational efficiency. This is achieved by way of a critical shift in incentive structure: If an industrial company assumes responsibility for an offering throughout the lifecycle, the terms on which that company operates are changed substantially in comparison to traditional product sales. Instead of benefiting from a short lifetime through additional sales opportunities or making profit through the sale of spare parts, in highly integrated PSS, each parts exchange, each technicians’ visit and each day the lifetime of the offering is reduced directly affects the bottom line of the provider. Due to that, solely as a result of economic rationality, a provider of these offerings has an incentive to design in such a way that the life of this offering is prolonged, need for spare parts is reduced, service activities are facilitated and simplified, and that the conditions are in place to allow for a second or third life of the offering through remanufacturing. Regardless of this compelling logic, at times, industrial companies fail to establish the preconditions to capturing these benefits as they continue to rely on product and sales-centric design processes even though they provide PSS. This thesis aims to examine this unexploited opportunity from two vantage points. On the one hand, methods conceived in academia to support industry in implementing and executing joint, lifecycle-focused design of products and services, and the use of these methods in practice, are examined. Here, the focus firstly lies on understanding how PSS are designed today, and secondly, on what should change about PSS design methods to improve their implementability and usability in industrial practice, so that they can fulfill their supposed role as facilitators of efficient PSS design and operation. On the other hand, the possible benefits of providing specifically designed and lifecycle-focused PSS as an industrial company are in focus. To this end, the value attained by providers throughout the use phase of PSS is investigated, to then identify possible approaches towards enhancing this value. Eventually, both focus-areas are joined in an effort to examine the interaction between method-supported, lifecycle-oriented PSS design and the value attained by providers of such offerings. As a result of the research, a lacking adaptation of design processes to PSS is identified in the case companies. Further, shortcomings of PSS design methods conceived in academia, e.g. excessive complexity, lacking clarity and rigidity, are found in both literature as well as in a study with an industrial company. To take a first step towards rectifying this issue, six characteristics intended to enhance implementability and usability of PSS design methods, are presented. The value attained by PSS providers has been found to be a complex but important subject. In a case study, value determinants of high relevance to the use phase of the lifecycle have been identified and assessed for their utility as indicators in the evaluation and enhancement of PSS offerings in the design phase. The practitioners involved were supportive of the applicability of the systematic approach presented to capture more value through offering PSS. In joining both the value- and method-oriented approach, the mutual dependency of both aspects is discussed. In order to provide PSS in an economically and environmentally efficient fashion, adapting the existing design processes is imperative. The value attained by the provider can, complementary to existing customer-centric approaches, serve as an important goal for the adaptation of design processes. Ultimately, through understanding the change in incentive structure at the core of PSS, and through implementing a value-driven design process supported by efficient and effective methods aimed at providing both customer value and capturing provider benefits throughout the lifecycle, there is a genuine potential of conducting more sustainable business.

The purpose of the research is to study the “Orange and Ericsson case” while developing the method Actors and System Map. The interaction between actors within Ericsson’s Device Connection Platform is investigated in order to identify improvement opportunities in the interaction between the provider and the customer. To answer the purpose the following research questions was formulated: RQ1)  What type of actors may be involved in a telecom related IPSO? RQ2)  How can the connections between actors in the telecom related IPSO be illustrated? RQ3)  How can the Actors and System Map method be refined? In order to answer the research questions different methodologies were used for the analysing process. The research started with a widespread literature study to collect knowledge related to the area of Product Service System (PSS) and methodologies for identifying how actors interact with one another. Studying different mapping methods the conclusion was made that Actors and System Map was most suitable for this study. In the methodology background the previous selected method, Actors and System Map from an Integrated Product Service Offering (IPSO) perspective, was examined in order to be able to refine and improve the mapping method. Actors Map provides a visual and clear overview of the actors involved while a System Map shows the information flows and activities between the actors. To understand the interaction between the two companies, the definition of IPSO and the importance of value-based selling for a service offering are described in the theory background. Also, different ways of looking at a business model within the telecommunication industry is presented. Obtaining information regarding making an Actors Map and a System Map an improved mapping method was refined. The adaption of the method was divided into eight steps. The refined Actors Maps of the DCP shows the actors involved, how they are connected and their main assignments from each respondent’s point of view at Ericsson. The refined System Map shows what kind of information is transferred between the actors within the companies and between Orange and Ericsson. Both maps delivered as a decision basis will help identification of non-value giving links and non-optimal distances in the information flow for both companies.