Hack the Business Canvas Model Based on Product-Service System: Natural Language Processing (NLP) Perspective

https://doi.org/10.35912/simo.v5i1.2530
Published: Apr 4, 2024

Abstract:

Purpose: This research aims to explore the business model used for energy service companies or ESCOs.

Research methodology: This research uses action research based on soft systems methodology and uses business analogies to explore implementing alternative PSS business models. The question component of this research uses the canvas business model (BMC) framework. The use of Natural Language Processing (NLP) from the sub-field of artificial intelligence is used to investigate the problems and concerns of stakeholders about energy efficiency services today.

Results: It was found that NLP can extract issues or sentiments about positive or negative aspects when it comes to the development and role of energy service companies in Indonesia. It was also found that PSS's alternative business model can be used as a visual representation of how an energy service company creates, delivers, and adds value to its proportion of customers.

Limitations: This research investigated case studies conducted between June 2020 and April 2021 on ESCO company. The findings from this case study may not generalize well to other contexts. Additional case studies on different populations are often needed.

Contribution: Due to the increasing demand for energy and limited energy supply, companies can gain a competitive advantage by applying the PSS business model to the energy efficiency industry. Furthermore, there is a vast and untapped market potential for energy service companies in the energy efficiency industry in Indonesia.

Keywords:
1. Product Service System (PSS)
2. Energy service company
3. Soft system methodology
4. Business Model Analogy
5. Natural Language Processing
Authors:
1 . Eka Sudarmaji
2 . Herlan Masrio
3 . Ismiriati Nasip
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How to Cite
Sudarmaji, E., Masrio, H., & Nasip, I. (2024). Hack the Business Canvas Model Based on Product-Service System: Natural Language Processing (NLP) Perspective. Studi Ilmu Manajemen Dan Organisasi, 5(1), 1–17. https://doi.org/10.35912/simo.v5i1.2530
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Vol. 5 No. 1 (2024): April
Articles
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References

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    Brown, M. A. (2001). Market Failures and Barriers as A Basis for Clean Energy Policies. Energy Policy, 29, 1197–1207.

    Brown, M. H., & Conover, B. (2009). Recent Innovations in Financing for Clean Energy. Southwest Energy Efficiency Project, October.

    Checkland, P. (2000). Soft Systems Methodology: A Thirty Year Retrospective. The Journal of the Operational Research Society, 17, 11–58.

    Checkland, P., & Holwell, S. (2007). Action Research: Its Nature and Validity. In Springer Science + Business Media (Vol. 13, Issue 3es).

    Cherry, T. L., Kallbekken, S., & Kroll, S. (2017). Accepting market failure: Cultural Worldviews and the Opposition to Corrective Environmental Policies. Journal of Environmental Economics and Management, 85, 193–204. https://doi.org/10.1016/j.jeem.2017.05.004

    Chiu, M. C. (2021). Developing a personalized recommendation system in a smart product service system based on unsupervised learning model. Computers in Industry, 128. https://doi.org/10.1016/j.compind.2021.103421

    Fisher, A. C., & Rothkopf, M. H. (1989). Market failure and energy policy - A rationale for selective conservation. Energy Policy, 17(4), 397–406.

    Gaiardelli, P. (2021). Product-service systems evolution in the era of Industry 4.0. Service Business, 15(1), 177–207. https://doi.org/10.1007/s11628-021-00438-9

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    Golove, W. H., & Eto, J. H. (1996). Market Barriers to Energy Efficiency?: A Critical Reappraisal of the Rationale for Public Policies to Promote Energy Efficiency. Energy Environment, 26(March).

    Haase, R. P., Pigosso, D. C. A., & McAloone, T. C. (2017). Product/Service-System Origins and Trajectories: A Systematic Literature Review of PSS Definitions and their Characteristics. Procedia CIRP, 64, 157–162. https://doi.org/10.1016/j.procir.2017.03.053

    Hanifah, A. P., Sukoco, I., & Muftiadi, A. (2023). Mapping Study of Design Thinking on Product Development in The Last 10 Years. Reviu Akuntansi, Manajemen, Dan Bisnis, 3(2), 93–109. https://doi.org/10.35912/rambis.v3i2.2402

    Heil, O. P., & Helsen, K. (2001). Toward an understanding of price wars?: Their nature and how they erupt. International Journal of Research in Marketing, 18, 83–98.

    Johnson, E. (2021). Product-service systems and sustainability: Analysing the environmental impacts of rental clothing. Sustainability (Switzerland), 13(4), 1–30. https://doi.org/10.3390/su13042118

    Moreno, A., & Redondo, T. (2016). Text Analytics: the convergence of Big Data and Artificial Intelligence. International Journal of Interactive Multimedia and Artificial Intelligence, 3(6), 57.

    O’Malley, E., Scott, S., & Sorrell, S. (2003). The economics of energy efficiency?: Barriers to cost-effective investment. In Policy Research Series.

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    Parmar, M., Maturi, B., Dutt, J. M., & Phate, H. (2018). Sentiment Analysis on Interview Transcripts: An application of NLP for Quantitative Analysis. 2018 International Conference on Advances in Computing, Communications and Informatics, ICACCI 2018, 1063–1068.

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    Peraturan Pemerintah Republik Indonesia. (2009). Peraturan Pemerintah Republik Indonesia Nomor 70 Tahun 2009 Tentang Konservasi Energi.

    Rapaccini, M. (2022). Conceptualizing customer value in data-driven services and smart PSS. Computers in Industry, 137. https://doi.org/10.1016/j.compind.2022.103607

    Remane, G., Hanelt, A., Tesch, J. F., & Kolbe, L. M. (2017). The Business Model Pattern Database-A Tool For Systematic Business Model Innovation. International Journal of Innovation Management, 21(1). https://doi.org/10.1142/S1363919617500049

    Schleich, J., & Gruber, E. (2008). Beyond case studies?: Barriers to energy efficiency in commerce and the services sector. Energy Economics, 30, 449–464.

    Sudarmaji, E. (2017). Employing Open Innovation Where Smes Need It Most, The Indonesian Perspective. IOSR Journal of Business and Management, 19(05), 06–16. https://doi.org/10.9790/487x-1905020616

    Sun, S., Luo, C., & Chen, J. (2016). A review of natural language processing techniques for opinion mining systems. In Information Fusion (Vol. 36).

    Suyudi, I., Sudadio, S., & Suherman, S. (2023). Pengenalan Bahasa Isyarat Indonesia menggunakan Mediapipe dengan Model Random Forest dan Multinomial Logistic Regression. Jurnal Ilmu Siber Dan Teknologi Digital, 1(1), 65–80. https://doi.org/10.35912/jisted.v1i1.1899

    Vandermerwe, S., & Rada, J. (1988). Servitization of Business: Adding Value by Adding Services. European Management Journal, 6(4), 314–327.

    Wahyudi, H., & Sumahir, G. N. (2022). The Effect of Research and Development (R&D) Investment, E-Commerce Company Employee, And E-Commerce Transaction Volume On Economic Growth In Indonesia 2010Q1 – 2020Q4. Studi Ilmu Manajemen Dan Organisasi, 1(2), 153–165. https://doi.org/10.35912/simo.v1i2.1416

    Yuliana, Y. (2022). Peningkatan Daya Saing Bisnis melalui Technopreneurship. Reviu Akuntansi, Manajemen, Dan Bisnis, 1(2), 103–113. https://doi.org/10.35912/rambis.v1i2.556

    Zillah, F., Husniati, R., & Aziz, A. (2022). Pengaruh Pelatihan, Pengawasan, dan Disiplin Kerja terhadap Kinerja Karyawan. Studi Ilmu Manajemen Dan Organisasi, 3(1), 213–232. https://doi.org/10.35912/simo.v3i1.677

  1. Baines, T. S., Lightfoot, H. W., Benedettini, O., & Kay, J. M. (2009). The servitization of manufacturing: A review of literature and reflection on future challenges. Journal of Manufacturing Technology Management, 20(5), 547–567. https://doi.org/10.1108/17410380910960984
  2. Blumstein, C., & Taylor, M. (2013). Rethinking the Energy-Efficiency Gap?: Producers, Intermediaries, and Innovation. May.
  3. Brown, M. A. (2001). Market Failures and Barriers as A Basis for Clean Energy Policies. Energy Policy, 29, 1197–1207.
  4. Brown, M. H., & Conover, B. (2009). Recent Innovations in Financing for Clean Energy. Southwest Energy Efficiency Project, October.
  5. Checkland, P. (2000). Soft Systems Methodology: A Thirty Year Retrospective. The Journal of the Operational Research Society, 17, 11–58.
  6. Checkland, P., & Holwell, S. (2007). Action Research: Its Nature and Validity. In Springer Science + Business Media (Vol. 13, Issue 3es).
  7. Cherry, T. L., Kallbekken, S., & Kroll, S. (2017). Accepting market failure: Cultural Worldviews and the Opposition to Corrective Environmental Policies. Journal of Environmental Economics and Management, 85, 193–204. https://doi.org/10.1016/j.jeem.2017.05.004
  8. Chiu, M. C. (2021). Developing a personalized recommendation system in a smart product service system based on unsupervised learning model. Computers in Industry, 128. https://doi.org/10.1016/j.compind.2021.103421
  9. Fisher, A. C., & Rothkopf, M. H. (1989). Market failure and energy policy - A rationale for selective conservation. Energy Policy, 17(4), 397–406.
  10. Gaiardelli, P. (2021). Product-service systems evolution in the era of Industry 4.0. Service Business, 15(1), 177–207. https://doi.org/10.1007/s11628-021-00438-9
  11. Gassman, O., Frankenberger, K., & Csik, M. (2015). The Business Model Navigator. FT Publishing.
  12. Gerarden, T. D., Newell, R. G., & Stavins, R. N. (2015). Assessing the Energy-Efficiency Gap. National Bureau of Economic Research Working Paper Series, January, 1–74.
  13. Goedkoop, M. J., van Halen, C. J. G., te Riele, H. R. M., & Rommens, P. J. M. (1999). Product Service systems , Ecological and Economic Basics.
  14. Golove, W. H., & Eto, J. H. (1996). Market Barriers to Energy Efficiency?: A Critical Reappraisal of the Rationale for Public Policies to Promote Energy Efficiency. Energy Environment, 26(March).
  15. Haase, R. P., Pigosso, D. C. A., & McAloone, T. C. (2017). Product/Service-System Origins and Trajectories: A Systematic Literature Review of PSS Definitions and their Characteristics. Procedia CIRP, 64, 157–162. https://doi.org/10.1016/j.procir.2017.03.053
  16. Hanifah, A. P., Sukoco, I., & Muftiadi, A. (2023). Mapping Study of Design Thinking on Product Development in The Last 10 Years. Reviu Akuntansi, Manajemen, Dan Bisnis, 3(2), 93–109. https://doi.org/10.35912/rambis.v3i2.2402
  17. Heil, O. P., & Helsen, K. (2001). Toward an understanding of price wars?: Their nature and how they erupt. International Journal of Research in Marketing, 18, 83–98.
  18. Johnson, E. (2021). Product-service systems and sustainability: Analysing the environmental impacts of rental clothing. Sustainability (Switzerland), 13(4), 1–30. https://doi.org/10.3390/su13042118
  19. Moreno, A., & Redondo, T. (2016). Text Analytics: the convergence of Big Data and Artificial Intelligence. International Journal of Interactive Multimedia and Artificial Intelligence, 3(6), 57.
  20. O’Malley, E., Scott, S., & Sorrell, S. (2003). The economics of energy efficiency?: Barriers to cost-effective investment. In Policy Research Series.
  21. Osterwalder, A., & Pigneur, Y. (2010). Business Model Generation: A hits book for visionaries, game changers, i-challengers (pp. 26–47).
  22. Parmar, M., Maturi, B., Dutt, J. M., & Phate, H. (2018). Sentiment Analysis on Interview Transcripts: An application of NLP for Quantitative Analysis. 2018 International Conference on Advances in Computing, Communications and Informatics, ICACCI 2018, 1063–1068.
  23. Pawar, K. S., Beltagui, A., & Riedel, J. C. K. H. (2009). The PSO triangle: Designing product, service and organisation to create value. International Journal of Operations and Production Management, 29(5), 468–493. https://doi.org/10.1108/01443570910953595
  24. Peraturan Pemerintah Republik Indonesia. (2009). Peraturan Pemerintah Republik Indonesia Nomor 70 Tahun 2009 Tentang Konservasi Energi.
  25. Rapaccini, M. (2022). Conceptualizing customer value in data-driven services and smart PSS. Computers in Industry, 137. https://doi.org/10.1016/j.compind.2022.103607
  26. Remane, G., Hanelt, A., Tesch, J. F., & Kolbe, L. M. (2017). The Business Model Pattern Database-A Tool For Systematic Business Model Innovation. International Journal of Innovation Management, 21(1). https://doi.org/10.1142/S1363919617500049
  27. Schleich, J., & Gruber, E. (2008). Beyond case studies?: Barriers to energy efficiency in commerce and the services sector. Energy Economics, 30, 449–464.
  28. Sudarmaji, E. (2017). Employing Open Innovation Where Smes Need It Most, The Indonesian Perspective. IOSR Journal of Business and Management, 19(05), 06–16. https://doi.org/10.9790/487x-1905020616
  29. Sun, S., Luo, C., & Chen, J. (2016). A review of natural language processing techniques for opinion mining systems. In Information Fusion (Vol. 36).
  30. Suyudi, I., Sudadio, S., & Suherman, S. (2023). Pengenalan Bahasa Isyarat Indonesia menggunakan Mediapipe dengan Model Random Forest dan Multinomial Logistic Regression. Jurnal Ilmu Siber Dan Teknologi Digital, 1(1), 65–80. https://doi.org/10.35912/jisted.v1i1.1899
  31. Vandermerwe, S., & Rada, J. (1988). Servitization of Business: Adding Value by Adding Services. European Management Journal, 6(4), 314–327.
  32. Wahyudi, H., & Sumahir, G. N. (2022). The Effect of Research and Development (R&D) Investment, E-Commerce Company Employee, And E-Commerce Transaction Volume On Economic Growth In Indonesia 2010Q1 – 2020Q4. Studi Ilmu Manajemen Dan Organisasi, 1(2), 153–165. https://doi.org/10.35912/simo.v1i2.1416
  33. Yuliana, Y. (2022). Peningkatan Daya Saing Bisnis melalui Technopreneurship. Reviu Akuntansi, Manajemen, Dan Bisnis, 1(2), 103–113. https://doi.org/10.35912/rambis.v1i2.556
  34. Zillah, F., Husniati, R., & Aziz, A. (2022). Pengaruh Pelatihan, Pengawasan, dan Disiplin Kerja terhadap Kinerja Karyawan. Studi Ilmu Manajemen Dan Organisasi, 3(1), 213–232. https://doi.org/10.35912/simo.v3i1.677