Product-service systems (PSS) are complex bundles of products and services aimed at fulfilling customers’ needs. The key challenges of designing a new PSS include establishing the underlying value network supporting PSS delivery. The success of a PSS business model relies heavily on establishing a win-win value network that ensures fairly shared value capture and creation among the PSS stakeholders. This paper investigates the underlying challenges of establishing such value networks, and proposes a novel framework for building win-win value networks for PSS delivery. A case study illustrates the applicability and usefulness of the proposed framework in designing and assessing the possible value networks and associated value capture for the delivery of an innovative smart PSS in the cheese industry.