84
C. A. González Chávez et al.
The capabilities of firms translate into both digital infrastructure and the availability of qualified employees who can develop and provide services with increased
complexity, abstraction and the required problem-solving mindset (Lerch and Gotsch
2015). In this way, the development of abilities that allow dealing with technological
devices and applications efficiently and effectively is a critical component.
Literature suggests assessment methods to ensure that companies are ready to
perform in this regard (Kans and Ingwald 2016). Hence, it is commonly recognised
that there is an increasing need for technical and social competencies of the employees
(Cimini et al. 2018; Romero et al. 2016).
6.5.3.4 Policies and Regulations
The sharing economy is widely promoted by policy makers due to its sustainability
potential, although the specific impact and possible effects are still unexplored.
Some authors suggest that policy-makers who desire to institutionalise sharing
as a consumption practice need to draw their sight to the possibility of negative
perceptions that may exist among customers (Curtis and Lehner 2019).
In recent work, Pagoropoulos makes reference to the potential challenges that
regulators and policy makers might face when integrating physical assets with service
developments through digital technologies (Pagoropoulos et al. 2017b). Additionally, authors are concerned about the policy difficulties related to the use of IT
(Rymaszewska et al. 2017) which is discussed further in the subsection on Data
privacy.
6.5.3.5 Economic Feasibility
Another major concern is the economic feasibility of digitally-integrated PSS. It
is unlikely that through vast computing power sensors with simultaneous sending
and reception of data is achieved without simplicity and autonomy of end devices
(Rymaszewska et al. 2015).
Besides, companies that create value offerings through PSS BMs, is that some
financial risks are transferred from users to providers. More specifically, providers
are often financially exposed to the risk of an early suspension of the contract by
customers, when they have financed in advance the entire solution. Moreover, some
cases present a time mismatch between revenue and cost streams, where providers
who convert their offerings into PSS provisions find themselves having to finance in
advance the capital costs of the solution and facing high-risk contracts (Bressanelli
et al. 2018).
C. A. González Chávez et al.
The capabilities of firms translate into both digital infrastructure and the availability of qualified employees who can develop and provide services with increased
complexity, abstraction and the required problem-solving mindset (Lerch and Gotsch
2015). In this way, the development of abilities that allow dealing with technological
devices and applications efficiently and effectively is a critical component.
Literature suggests assessment methods to ensure that companies are ready to
perform in this regard (Kans and Ingwald 2016). Hence, it is commonly recognised
that there is an increasing need for technical and social competencies of the employees
(Cimini et al. 2018; Romero et al. 2016).
6.5.3.4 Policies and Regulations
The sharing economy is widely promoted by policy makers due to its sustainability
potential, although the specific impact and possible effects are still unexplored.
Some authors suggest that policy-makers who desire to institutionalise sharing
as a consumption practice need to draw their sight to the possibility of negative
perceptions that may exist among customers (Curtis and Lehner 2019).
In recent work, Pagoropoulos makes reference to the potential challenges that
regulators and policy makers might face when integrating physical assets with service
developments through digital technologies (Pagoropoulos et al. 2017b). Additionally, authors are concerned about the policy difficulties related to the use of IT
(Rymaszewska et al. 2017) which is discussed further in the subsection on Data
privacy.
6.5.3.5 Economic Feasibility
Another major concern is the economic feasibility of digitally-integrated PSS. It
is unlikely that through vast computing power sensors with simultaneous sending
and reception of data is achieved without simplicity and autonomy of end devices
(Rymaszewska et al. 2015).
Besides, companies that create value offerings through PSS BMs, is that some
financial risks are transferred from users to providers. More specifically, providers
are often financially exposed to the risk of an early suspension of the contract by
customers, when they have financed in advance the entire solution. Moreover, some
cases present a time mismatch between revenue and cost streams, where providers
who convert their offerings into PSS provisions find themselves having to finance in
advance the capital costs of the solution and facing high-risk contracts (Bressanelli
et al. 2018).