Digital servitization has emerged over the last years, at the convergence between digital- and service-oriented business strategies, leading manufacturing companies to transform their business models through the adoption of so-called Smart PSS (Smart Product-Service-Systems). As a contribution to the relatively recent scientific literature on Smart PSS design, this paper presents a framework for the design and engineering of Smart PSS offers, based on a value-driven approach. The added-value of the framework is notably to integrate (i) a smart PSS prototyping approach associated with (ii) a risk management process, all along the design process. When a manufacturing company has to shift from a ‘product-centric’ to a ‘Smart PSS’ business model, sPS2Risk Framework helps decision-makers anticipating and mitigating key innovation risks. The paper presents the generic framework and its experimentation for an industrial case study, in the heating appliance sector.