What is a DPS (Digital Product-Service) system?

A DPS (Digital Product-Service) system is a software underlying the delivery of a connected PSS (Product-Service System). A connected PSS is a combination of a product and services (the traditional PSS) having the product connected to the internet (connected PSS). The DPS software exploits the data collected from the connected product and provides all the stakeholders of the PSS with insights, advice, automations and any other digital capabilities needed to ensure that
  1. the end customer maximizes the outcome expected from the product
  1. the supplier minimizes the risks and costs incurred in providing the service
Put simply, a DPS is the digital companion of a product-service system.
It is a new software category whose need arises from equipment manufacturers’ growing interest in servitization and connected services.
If you have already started the development of your connected product-service offering, probably you have already started building a custom DPS system by yourself

Users of a DPS system

Potentially, any stakeholder of a product-service system is a user of the DPS system.
A sample list of roles could be:
  • Roles inside a B2B end customer entity:
    • product / machine user
    • plant / shop / office / process manager
    • internal maintenance operator
    • internal maintenance manager
    • purchasing department
    • energy manager
  • Roles inside a B2C end customer entity:
    • home owner
    • family members
    • guests
  • Roles inside a Technical Assistance Center (TAC) entity:
    • maintenance operator
    • maintenance manager
  • Roles inside a Reseller / Distributor entity:
    • sales representative
  • Roles inside the Manufacturer entity:
    • service department
    • R&D department
    • sales department
    • board

Main functions of a DPS system

A DPS system has these main functions:
  1. collecting data from each connected product and establishing a two-way communication
  1. running the digital twin of each connected product
  1. transforming data into useful information and actions to be performed
  1. managing remote control or configuration activities
  1. delivering such information and digital capabilities to the stakeholders of the product-service system
  1. managing the (after-sales) lifecycle of products and services

Objectives of a DPS system

  1. keep track of the relevant KPI for the business of the end customers, such as product health, availability, performance, efficiency
  1. deliver value to the end customers to help them maximize the outcome expected from the product
  1. support and orchestrate the operations of the service suppliers, according to service level agreements with the end customer, to help them minimize the risks and costs incurred in providing the service


A DPS system typically stands beside the ERP, FSM and CRM systems of the manufacturer and on top of the IoT backbone of the connected products.