How to promote the spread of data-driven business models by involving all relevant stakeholders?

The case of the pay-per-stress model

Carl, Brîncoveanu & Hinz · INFORMATIK 2024, Wiesbaden, Germany ·

TL;DR: An investigation into the ‘pay-per-stress’ model, identifying an incentive system to align stakeholder interests and promote sustainable business practices. Data-driven business models offer a promising path toward greater sustainability. One such model is “pay-per-stress,” where customers of leased products pay based on the intensity of use rather than a flat rate, encouraging practices that extend a product’s lifespan.

Despite their potential, the adoption of these innovative models has been slow. A primary barrier is ensuring that all involved parties—from the manufacturer and lessor to the end-user—see a clear and compelling benefit.

To understand this challenge, we investigated the pay-per-stress model within the manufacturing industry. We conducted semi-structured interviews with 19 experts across the three key stakeholder groups to identify what would motivate them to adopt such a system.

This research contributes to the practical understanding of how to implement sustainable business models. It outlines a potential incentive system that aligns the interests of all parties, making longer product lifespans economically attractive for everyone involved and addressing a key hurdle to real-world adoption.

Read the Full Paper