A service innovation model for synergistic community transformation: integrated application of systems theory and product-service systems

Product-Service System (PSS) approaches and resulting benefits have been viewed mainly from a business world standpoint and in terms of economic and environmental dimensions of sustainability. This paper seeks to extend the application of PSS for community social-economic transformation and links it with Soft Systems Methodology (SSM), especially the Customer-Actor-Transformation-Worldview-Owner-Environment (CATWOE) method, to propose a model for synergistically sustainable community development. This approach recognises the diverse views and transformation goals of multiple stakeholders, fosters value co-creation in achieving desirable outcomes and uncovers synergies between system entities and various PSS elements. By analysing two examples of disadvantaged regional communities, the paper indicates how systems thinking and PSS can facilitate service innovation and opportunities for synergistic sustainability by transforming the local economy and improving services and social livelihoods.