Navigating the Shift: From Traditional Sales to Product-as-a-Service (PaaS)

This paper considers alternative revenue models for companies traditionally reliant on transactional sales models. The research question explores viable revenue strategies for a firm with a traditional transnational revenue model and wants to transition to a product-as-a-service-based revenue model. To understand the transition, the study employs a multi-stage methodology that includes assessing the product-service system and analytical tools for contextual understanding. Insights into different approaches and their practical applications were gained, with detailed analyses based on avatar mapping, lifecycle examination, and a total cost of ownership analysis that must be adapted for data scarcity. Where data is unavailable, the paper provides an approach to support collecting the necessary lifecycle costs to allow PaaS models to be developed based on the average spend profile.