A product-service system is a business model that bundles a physical product together with related services into a single integrated offering, rather than selling the product and any services around it separately, with the aim of meeting a customer's underlying need more completely. The concept emerged in the 1990s as manufacturers facing saturated product markets looked to services bundled with their goods for a competitive edge, and it is generally divided into function-based systems that add new capability to a product (such as General Motors' OnStar), value-added systems that enhance a product's existing features (such as Otis Elevator's remote monitoring), and result-oriented systems that substitute a service outcome for outright ownership of the product itself, such as Xerox's pay-per-copy printing and Michelin's per-kilometer tire leasing for vehicle fleets.
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