This thesis explores the potential for elho Group to innovate in the indoor gardening industry by developing a Product-Service System (PSS). As a leader in sustainable synthetic plant pots, elho is eager to explore offerings beyond products that embrace a more service-oriented business. This thesis explores the intersection of consumer behaviour and strategic business model innovation, identifying key challenges, opportunities, and drivers that influence the adoption of new PSSs. Furthermore, it discusses how an understanding of these factors can inform strategic decision-making and future growth strategies.

The research and design process was structured using a systemic design approach, by using the Double Diamond model. Key activities included extensive literature reviews, empirical research on consumer behaviour, product testing, industry and competitor analysis, and several co-creation sessions. These activities helped identify the drivers and barriers influencing the adoption of PSS in the Indoor Smart Garden (ISG) market, offering valuable insights into consumer perceptions of current market offerings. The findings guided the development of a solution tailored to meet consumer needs while addressing existing gaps in the market.

Qualitative interviews with "zillennials" revealed key factors influencing PSS adoption. These included concerns around cost sensitivity, lack of flexibility, and lack of trust, as well as the importance of emotional benefits and service attributes. For ISG products, factors like aesthetics, customizability, and ease of use were critical for adoption. Participants favoured natural designs and products that seamlessly fit into their living spaces and reflect their personal values. The external analysis revealed a competitive landscape dominated by small, similar brands. Consumer dissatisfaction arises from poor product performance, high prices, and bad customer service.

The results indicate that launching an elho ISG PSS is a high-risk, all-in venture that demands full commitment and strong service differentiation. To stand out in the market, elho must provide a modular and customisable design that enhances interior compatibility while maintaining an affordable price point. Success also hinges on creating a PSS by focusing on lifestyle integration and high consumer interaction. Elho's future vision centres on becoming a trusted partner in plant care by integrating supporting services next to its products and evolving into a trusted partner in plant care through innovative, supporting consumers in their journey to a ‘green’ lifestyle with innovative, sustainable products and services that nurture both the user and their plants."

The proposed solution, Tuyn, empowers consumers to maintain and grow a range of home-delivered herbs effortlessly. With an automated watering system, AI-driven guidance, and a flexible offerings, Tuyn adapts to individual preferences, making indoor gardening both convenient and personal. The system is enhanced by a mobile application that provides customized plant care instructions, helping users seamlessly integrate their herbs into daily routines. With a customizable design, Tuyn fits perfectly into urban living spaces, offering both functionality and aesthetic appeal.

The expected impact of Tuyn is significant, improving consumer engagement and product differentiation. Tuyn addresses key consumer challenges identified in the research, including bad germination, long growth times, low yields, and complexity. The concept aligns with elho’s purpose of "giving room to nature" and shifts towards a service-oriented model that enhances the consumer experience while allowing elho to explore a more direct Business-to-Consumer (B2C) approach.

The evaluation of Tuyn highlights its strong desirability for eco-conscious urban consumers seeking a unique and valuable experience, but challenges in supply chain management persist, particularly with elho’s reluctance to deliver fresh herbs. The concept's feasibility is hindered by logistical complexities, while its viability depends on refining the business model and reducing operational costs. Recommendations include developing a robust supply chain, conducting pilot tests, adapting the business model with flexible pricing, creating strong branding, and launching an effective marketing campaign. Scalability through market expansion and potential vertical farming partnerships will also be crucial for long-term success.