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Effective Simulations for Value Exploration in System-of-Systems Design: A Step Towards Digital Twins
Blekinge Institute of Technology, Faculty of Engineering, Department of Mechanical Engineering. (Product Development Research Lab)ORCID iD: 0000-0002-2579-2310
2026 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

Today, increased global competition and regulatory demands push organizations to find innovative ways to design and create value. One way is to examine Product-Service System offerings, which enable more stable revenues and foster tighter collaboration and value co-creation between the provider and customer. However, this often means adopting a System-of-Systems (SoS) approach where the value creation is dependent on successful collaboration between constituent systems and actors. SoS also leads to higher complexity and uncertainty, making them more challenging to design, especially in the early stages where knowledge is limited. Therefore, this thesis investigates how to leverage simulations and operational data to explore the value creation in SoS design.

Methodologically, the work adopts a Design Research Methodology and Participatory Action Research approach, combining systematic literature reviews with six industrial case studies in the construction machinery and climate resilience sectors. The case studies originate from a series of research projects conducted in collaboration with various industrial and public partners between 2020 and 2025. 

The research introduces two main contributions. First, the Value–Data Framework, which operationalizes Value-Driven Design by linking value modeling to operational datasets, enabling transparent and quantitative assessment of value creation. The value model introduces a two-step value hierarchy to enhance transparency and address the growing complexity of SoS. Operational data is defined and classified clearly to show where and how it can be leveraged. The second contribution, an Integrated Simulation Platform, equips design teams with the ability to develop effective simulations for SoS modeling in early design stages. The platform explicitly addresses multi-fidelity to guide developers in balancing the computational complexity and accuracy. Finally, both contributions are demonstrated in quarry case studies to validate and highlight their usefulness. Lastly, the SoS simulations are contextualized for Digital Twinning, and the use cases and needs for deploying Digital Twins in climate resilience efforts are examined.

The findings advance theory by bridging Value-Driven Design and SoS simulations, and provide practical guidelines for managing fidelity trade-offs and data–value integration. Industrial implications include improved decision support for electrification, autonomy, and resilience strategies. 

Place, publisher, year, edition, pages
Karlskrona: Blekinge Tekniska Högskola, 2026. , p. 100
Series
Blekinge Institute of Technology Doctoral Dissertation Series, ISSN 1653-2090 ; 2026:02
Keywords [en]
System-of-Systems, Value-Driven Design, Operational data, Simulation, Decision support, Digital Twin
National Category
Mechanical Engineering
Research subject
Mechanical Engineering
Identifiers
URN: urn:nbn:se:bth-28936ISBN: 978-91-7295-520-2 (print)OAI: oai:DiVA.org:bth-28936DiVA, id: diva2:2018017
Public defence
2026-02-12, J1630, Valhallavägen 1, Karlskrona, 09:00 (English)
Opponent
Supervisors
Funder
VinnovaEU, Horizon EuropeKnowledge FoundationAvailable from: 2025-12-02 Created: 2025-12-02 Last updated: 2026-01-13Bibliographically approved
List of papers
1. Data-driven value creation in Smart Product-Service System design: State-of-the-art and research directions
Open this publication in new window or tab >>Data-driven value creation in Smart Product-Service System design: State-of-the-art and research directions
2022 (English)In: Computers in industry (Print), ISSN 0166-3615, E-ISSN 1872-6194, Vol. 137, article id 103606Article in journal (Refereed) Published
Abstract [en]

The emergence of IoT has propelled the traditionally known Product-Service System (PSS) to be characterized by smarter technologies, enabling them to collect and process data from the operational stage and facilitate communication between the customer and the provider. Commonly referred to as Smart Product-Service Systems (Smart PSS), these systems promise to create value at a personal level by collecting and effectively utilizing the operational data. However, one of the fundamental challenges is the lack of awareness as to what kind of data can be collected from the operational stage and what can be achieved from this data. This paper systematically reviews scientific literature to underline the kind of data being collected from the operational stage, the purposes being achieved from that data, and how they lead to value creation. The systematic review of 60 representative studies enabled the definition of the operational scenario that comprises 4 dimensions of data and 10 classes of data within these dimensions to generically identify what kind of data is being collected. The intend presented by various authors led to the generalization of 5 themes that target different purposes of collecting data. Further, the papers were classified with regards to functional or non-functional requirements to see how data in different approaches are leveraged for value creation. Finally, the discussion highlights the current gaps in the literature and raises several opportunities for future contributions.

Place, publisher, year, edition, pages
Elsevier, 2022
Keywords
Operational context, Operational data, Smart Product-Service System, Systematic Literature Review, Value creation
National Category
Other Engineering and Technologies
Identifiers
urn:nbn:se:bth-22567 (URN)10.1016/j.compind.2022.103606 (DOI)000754192300002 ()2-s2.0-85122617594 (Scopus ID)
Funder
Knowledge Foundation, 20180159
Note

open access

Available from: 2022-01-20 Created: 2022-01-20 Last updated: 2025-12-02Bibliographically approved
2. Understanding the relationship between Product-Service System value and operational data using network graphs
Open this publication in new window or tab >>Understanding the relationship between Product-Service System value and operational data using network graphs
Show others...
2022 (English)In: Procedia CIRP, Elsevier, 2022, Vol. 109, p. 544-549Conference paper, Published paper (Refereed)
Abstract [en]

With the advances of telemetries and computational power, the question for firms is no longer what can be collected but what shall be collected. It is easy to add sensors and gather a vast amount of data but without knowing their purpose, the gains are marginal. In the field of Value-Driven Design, value is quantified and measured to ensure an overall higher output, something crucial for complex and ambiguous domains such as Product-Service Systems. This paper aims at finding the connection between PSS value and operational data from an industrial perspective. By using Participatory Action Research in a manufacturing firm, a value-data framework and method were developed that succeed in connecting these two extremities as well as visualize them with the support of network graph theory.

Place, publisher, year, edition, pages
Elsevier, 2022
Series
Procedia CIRP, E-ISSN 22128271 ; 109
National Category
Other Mechanical Engineering
Research subject
Mechanical Engineering
Identifiers
urn:nbn:se:bth-23296 (URN)10.1016/j.procir.2022.05.292 (DOI)001491640000090 ()2-s2.0-85133501072 (Scopus ID)
Conference
32nd CIRP Design Conference, CIRP Design 2022, Gif-sur-Yvette, 28 March through 30 March 2022
Funder
Knowledge Foundation, 20180159
Note

open access

Available from: 2022-06-23 Created: 2022-06-23 Last updated: 2026-01-07Bibliographically approved
3. Collaborative Value Exploration for Early Product-Service Systems Design: A Group Model Building Approach
Open this publication in new window or tab >>Collaborative Value Exploration for Early Product-Service Systems Design: A Group Model Building Approach
2023 (English)In: Collaborative Networks in Digitalization and Society 5.0: 24th IFIP WG 5.5 Working Conference on Virtual Enterprises, PRO-VE 2023, Valencia, Spain, September 27–29, 2023, Proceedings / [ed] Luis M. Camarinha-Matos, Xavier Boucher, Angel Ortiz, Springer Science+Business Media B.V., 2023, p. 240-252Conference paper, Published paper (Refereed)
Abstract [en]

As manufacturing firms move from pure product-based business models toward Product-Service Systems offerings, value creation becomes more complex and requires more active cross-disciplinary collaboration. Especially non-functional values, those connected to the overall PSS behavior, depend on the successful alignment and coordination between perspectives. However, understanding the value creation itself, particularly among different departments or stakeholders, can be challenging. This paper conceptualizes a value model and a method based on Group Model Building to support value exploration of non-functional design objectives in early-stage Product-Service System design. The value model is constructed based on three layers of granularity to visualize how value is created holistically. Further, the proposed method allows participants to jointly explore and identify design objectives and put these in the context of value. The method and model were tested at two companies, showing that the proposed method and model successfully supported a collaborative value exploration in the non-functional domain. © 2023, IFIP International Federation for Information Processing.

Place, publisher, year, edition, pages
Springer Science+Business Media B.V., 2023
Series
IFIP Advances in Information and Communication Technology, ISSN 18684238 ; 688
Keywords
Action Research, Group Model Building, Product-Service Systems, Value Exploration, Product design, Structural design, Design objectives, Manufacturing firms, Non-functional, Service system designs, Value creation, Value model, Systems analysis
National Category
Other Mechanical Engineering
Identifiers
urn:nbn:se:bth-25511 (URN)10.1007/978-3-031-42622-3_17 (DOI)001359444600017 ()2-s2.0-85174446812 (Scopus ID)9783031426216 (ISBN)
Conference
24th IFIP WG 5.5 Working Conference on Virtual Enterprises, PRO-VE 2023, Valencia, 27 September through 29 September 2023
Funder
Knowledge Foundation, 20180159
Available from: 2023-10-31 Created: 2023-10-31 Last updated: 2025-12-02Bibliographically approved
4. An integrated simulation framework for system-of-systems value exploration
Open this publication in new window or tab >>An integrated simulation framework for system-of-systems value exploration
2025 (English)In: Design Science, E-ISSN 2053-4701, Vol. 11, article id e20Article in journal (Refereed) Published
Abstract [en]

The manufacturing sector is witnessing a paradigm shift toward servitization, where companies are transitioning from selling products to offering product-service systems. This shift creates additional challenges, where the providers must ensure the expected value throughout the operational phase of the solution. Especially when dealing with a system-of-systems (SoS), evaluating performance across diverse contexts and business models while understanding the interconnectedness between systems becomes critical. To address these challenges during the design phase, this article presents a novel integrated simulation framework that supports the development team in exploring value from a SoS perspective. This framework utilizes agent-based simulation and offers three key features: multifidelity, modular and multidisciplinary. The applicability of the proposed framework is further demonstrated in a quarry industry case.

Place, publisher, year, edition, pages
Cambridge University Press, 2025
Keywords
Systems engineering, Value-driven design, Agent-based simulation, Early-stage design, Product-service system
National Category
Other Engineering and Technologies
Identifiers
urn:nbn:se:bth-28225 (URN)10.1017/dsj.2025.10012 (DOI)001511123300001 ()2-s2.0-105009115661 (Scopus ID)
Available from: 2025-06-27 Created: 2025-06-27 Last updated: 2025-12-02Bibliographically approved
5. Effective system-of-systems simulation in a VUCA world: lessons learned for design decision-makers
Open this publication in new window or tab >>Effective system-of-systems simulation in a VUCA world: lessons learned for design decision-makers
2025 (English)In: Proceedings of the Design Society: Volume 5: ICED25 / [ed] di Milano P., Cambridge University Press, 2025, p. 1435-1444Conference paper, Published paper (Refereed)
Abstract [en]

Today, Manufacturing companies are adopting a servitization strategy and Product-Service System model to enhance value and remain competitive. Often, this transition also means to embrace a System-of-Systems (SoS) perspective. Concurrently, companies face challenges with volatile, uncertain, complex, and ambiguous (VUCA) environments. One way to tackle VUCA is to utilize simulation modeling. However, developing SoS simulations can be complex and cumbersome. This paper extracts lessons learned from six case studies to identify effective and ineffective practices in developing simulation models. The analysis has led to nine design principles for more effective simulation modeling. Furthermore, the paper explores simulation techniques for modeling SoS and discusses effective VUCA management. Finally, the paper proposes four future research directions to advance SoS simulation research.

Place, publisher, year, edition, pages
Cambridge University Press, 2025
Series
Proceedings of the Design Society, E-ISSN 2732-527X
Keywords
system-of-systems, simulation, early design phases, complexity
National Category
Industrial engineering and management Design
Research subject
Mechanical Engineering
Identifiers
urn:nbn:se:bth-28702 (URN)10.1017/pds.2025.10157 (DOI)2-s2.0-105022792831 (Scopus ID)
Conference
25th International Conference on Engineering Design, ICED 2025, Dallas, Aug 11-14, 2025
Funder
Vinnova, 2022-00578Vinnova, 2021-04347Vinnova, 2021-02551Swedish Energy Agency, P2023-01415EU, Horizon Europe, 101093968
Available from: 2025-10-01 Created: 2025-10-01 Last updated: 2025-12-05Bibliographically approved
6. The Role of Digital Twins in Building Climate Change Resilience
Open this publication in new window or tab >>The Role of Digital Twins in Building Climate Change Resilience
2025 (English)In: Hybrid Human-AI Collaborative Networks, Springer Nature, 2025Conference paper, Published paper (Refereed)
Abstract [en]

Climate change is one of the most important challenges for society to solve. However, it cannot be fixed solely through greenhouse gas reductions; it requires proactive efforts. This paper investigates how Digital Twins (DT) can serve as a support for Climate Change Adaptation (CCA), which is required to achieve climate resilience. Data was collected from a workshop targeting the role of DT in CCA, which consisted of 92 participants from the public sector in various European countries. The data was analyzed and disseminated to establish guiding principles on how DT can be deployed and designed to best fit the characteristics of CCA work. Firstly, use cases were identified based on cross-examination between CCA activities and stakeholders. Secondly, a list of needs for developing DTs to serve as CCA support was developed. Together, these aspects provide a solid base for more effective DT design in supporting the transition to a more resilient society.

Place, publisher, year, edition, pages
Springer Nature, 2025
Series
IFIP Advances in Information and Communication Technology, ISSN 1868-4238, E-ISSN 1868-422X
Keywords
Climate Change Adaptation, Digital Twin, Stakeholder Alignment
National Category
Other Mechanical Engineering
Research subject
Mechanical Engineering
Identifiers
urn:nbn:se:bth-28934 (URN)10.1007/978-3-032-05681-8_27 (DOI)
Conference
26th IFIP WG 5.5 Working Conference on Virtual Enterprises, PRO-VE 2025. Porto, Portugal 27-29 October 2025.
Projects
Regions for Climate Change Resilience through Innovation, Science and Technology
Funder
EU, Horizon Europe, 101093968
Available from: 2025-11-25 Created: 2025-11-25 Last updated: 2025-12-02Bibliographically approved

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Toller Melén, Carl Nils Konrad

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