Wavesof digitalization and Industry 4.0 currently boost research and development activities for smart product-service systems.The usage of infor-mation technology within products (e.g., IoT) and servicesas well as processing big dataleads to the development of novel product-service bundles like func-tional sales. One of the main barriers of smart PSS innovation ismissing infor-mation on possible economic (cost/revenue) and ecological (environmental) im-pacts. This paper presents a novel simulation approach to overcome the namedbarrier.Methodologically, the paper is based on design science research to de-velop an appropriate approach. Our simulation model will be able to enhance transparency about the different formsand powerof impact of smart PSS.Fur-thermore, the core of the new approach is the possible low threshold integration of existing data on business model and process model layers into the simulation. Finally, an existinguse casedemonstrateshow the approach can be applied.