Meditec is a German manufacturer of instruments for surgeries. The company is quality leader in this sector and

supplies many German and international hospitals. However, the opportunities for differentiation against

competitors decrease continuously. New competitors from emerging markets are challenging the market position of

established companies in this industry. Meditec is therefore forced to change its strategy and business model in order

to survive in this novel competitive environment. The management of Meditec has decided to traverse from a pure

product manufacturer to a customer-centric solution provider. This transformation requires the development of new

processes, competencies and capabilities – especially with respect to IT and IT services.

This teaching case helps in understanding the role of IT in product-service systems (PSS) and PSS-based business

models. Therefore the case illustrates why IT is necessary to establish a PSS-based business model and why a

customer-centric view is important for this kind of business model.