DESIGNING SERVICE-DOMINANT BUSINESS MODELS

The emergence of service-dominant logic has influenced business in many domains. It emphasizes the interaction of the producer, consumer, and other value-network partners as they co-create value through collaborative processes. These processes can be seen as service-for-service exchanges of these actors, which contrasts with the output orientation of the goods-dominant-logic that emphasizes how actors exchange output units. This paradigm transition has significant implications on doing business: the business requirements to services will change faster, and the complexity of valuenetworks required to meet these requirements will increase further. This requires new approaches to business engineering that are grounded in the premises of service-dominant logic. This paper introduces the service-dominant business model radar (SDBM/R) as an integral component of the business engineering framework that we have developed for engineering network-based, service-dominant business. Existing approaches to business model design follow an organization-centric view rooted in goods-dominant-logic, which does not allow adequately modeling the character of service-dominant business. The SDBM/R was developed with close collaboration with industry experts and empirically validated through a series of hands-on workshops with industry professionals from several domains. Thereby, this paper contributes a novel business design approach that has proper academic background and relevant practical embedding

Designing Business Models for Mobile Payment Services

Designing business models for mobile services is a complex undertaking because it requires multiple actors to balance different requirements and interests such that a ‘win-win’ situation is created. A business model can be seen as a blueprint of four interrelated components: service offering, technical architecture, and organizational and financial arrangements. Although little attention has been paid to how these different components are related to one another, this knowledge is needed to enhance our understanding of what constitutes a viable business model. In this paper the connections between two of these components, namely service offering and organizational arrangements, are explored by analyzing the business models of three recent mobile payment initiatives. The cases reveal that similar value elements can be realized in different ways and that, depending on the target group, dominant actors can be bypassed in the value network

The emergence of the mobile internet in Japan and the UK: platforms, exchange models, and innovation 1999‐2011

In 1999 Japanese mobile operator NTT DoCoMo launched arguably the world’s first successful mobile Internet services portal called “i‐mode”. In Europe at the same time a series of failures diminished the opportunities to attract customers to the mobile Internet. Even though similar Internet technologies were available in Japan and the UK, very different markets for services developed during the initial years 1999‐2003. When the West expected Japanese firms to become dominant players in the mobile digitalisation of services during the introduction of 3G networks, it remained instead a national affair. The dominant views of how markets for mobile services operated seemed flawed.   So‐called delivery platforms were used to connect mobile phones with service contents that were often adapted from the PC world. Designing and operating service delivery platforms became a new niche market. It held a pivotal role for the output of services and competition among providers.   This thesis sets out to answer a set of inter‐related questions: How and where did firms innovate in this new and growing part of the service economy and how are new business models mediated by service delivery platforms? It argues that innovation in the digitalised economy is largely influenced by firms achieving platform leadership through coordination of both technological systems and the creation of multi‐sided exchanges. This thesis demonstrates from cases of multi‐sided markets in operator‐controlled portals, of mobile video and TV and of event ticketing in Japan and the UK that defining the scope of the firm on the network level forms the basis for incremental innovation, the dominant form of service innovation. A parallel focus on coordinating platform technology choices forms the basis for firms to trade fees, advertisements, and user data, enabling control over profitable parts of multi‐sided value networks

Mapping and Developing Service Design Research in the UK.

This report is the outcome of the Service Design Research UK (SDR UK) Network with Lancaster University as primary investigator and London College of Communication, UAL as co-investigator. This project was funded as part of an Arts and Humanities Research Council Network grant. Service Design Research UK (SDR UK), funded by an AHRC Network Grant, aims to create a UK research network in an emerging field in Design that is Service Design. This field has a recent history and a growing, but still small and dispersed, research community that strongly needs support and visibility to consolidate its knowledge base and enhance its potential impact. Services represent a significant part of the UK economy and can have a transformational role in our society as they affect the way we organize, move, work, study or take care of our health and family. Design introduces a more human centred and creative approach to service innovation; this is critical to delivering more effective and novel solutions that have the potential to tackle contemporary challenges. Service Design Research UK reviewed and consolidated the emergence of Service Design within the estalished field of Design

Service Implementation Framework in Manufacturing Firms: A Case Study

The culture and the operational methods of service management have become a formidable competitive weapon even for manufacturing firms. The term "service factory" has been proposed for identifying that particular integration of products and services, achieved by the excellent manufacturing firm, where "service is a multidimensional concept". The creation of a service factory necessarily implies a radical change in the operational and organizational characteristics of the firm. In order to support manufacturing firms in adopting a service strategy, it is relevant on the one hand to identify the bundle of services which have to be provided for the customers and, on the other hand, to understand the implications for firm management model. As regards the first point, the paper proposes a framework which classifies the services along with two dimensions: Timedimension and target-dimension. The proposed framework is of interest for manufacturing firms because it allows a better recognition of services that are more perceptible for the customers. In the second part of the paper, authors discuss the implications of a service strategy adoption on the management model of manufacturing firms. In order to carry out this analysis, authors propose a model that combines four service dimensions with three decision-making categories (Organization, Methodologies and Technologies). In the end, the proposed framework has been applied in a sample of Italian hot water heater manufacturers and a case study analysis has been carried out

Designing Scalable Business Models

Digital business models are often designed for rapid growth, and some relatively young companies have indeed achieved global scale. However despite the visibility and importance of this phenomenon, analysis of scale and scalability remains underdeveloped in management literature. When it is addressed, analysis of this phenomenon is often over-influenced by arguments about economies of scale in production and distribution. To redress this omission, this paper draws on economic, organization and technology management literature to provide a detailed examination of the sources of scaling in digital businesses. We propose three mechanisms by which digital business models attempt to gain scale: engaging both non- paying users and paying customers; organizing customer engagement to allow self- customization; and orchestrating networked value chains, such as platforms or multi-sided business models. Scaling conditions are discussed, and propositions developed and illustrated with examples of big data entrepreneurial firms

MAST: Mental Ambidexterity in Strategic Thinking

There are two fundamental ways to think about what strategy is. The first one is strategy as a plan of action for reaching one or several goals. The second one is strategy as discipline, a formalized body of knowledge. The latter can be understood as the set of governing ideas that guide managers in the identification of opportunities for value creation and the realization of that value. In the present article, we argue that these ideas tend to fall into two main paradigms, which come with two metaphors about managers: managers as commanders and managers as designers. We further argue that these represent two fundamental ways of thinking, which in turn become ways of ‘seeing’ and even feeling. Is one better than the other? We suggest that is not the right question to ask. Rather it is important to appreciate that these are worldviews that affect how we interpret our day-to-day reality and our ability to see opportunities. We introduce the notion of Mental Ambidexterity in Strategic Thinking (MAST) and define it as the ability to hold both views of the world—that of the commander and that of the designer— and play with them simultaneously, rather than focusing solely on one and rejecting the other. MAST is an individual level capability; it is a flexible, non-ideological and fluid mode of cognition. At the core, it is characterized by switching flexibility back and forth between rational decisionmaking among alternatives, and creation of new alternatives, between what is and what could be. We illustrate three principles – i) intellectual humility, ii) contingent thinking and iii) poke into ambiguity – that act as catalysts for individuals to develop MAST capabilities

Servitization and operations management : a service-dominant logic approach

Managing organisational performance in sectors such as equipment provision has become increasingly complex as competition has heightened and firms have felt pressure to add value through the provision of services (Baines et al, 2007; Howard and Caldwell, 2011; Neely et al., 2011). This provision is commonly referred to as the servitization of manufacturing (Vandermerwe & Rada, 1988). By extending the traditional offering of equipment to include service activities however, underlying operational delivery systems and processes have become more complex to manage and co-ordinate. No longer are firms simply making and shipping products; they are now engaged in a more complex world of design and delivery (Neely et al., 2011). This study aims to explore servitization from a value perspective through the lens of Service-Dominant (S-D) logic, and to propose its implications for operations management

Application of activity - based costing in companies in Poland

Findings of the research have both practical and theoretical implications. First, from the practical point of view, future implementers of ABC systems should be aware of factors actually influencing ABC implementation as well as problems which can be encountered during the implementation process. Managers considering activity-based costing implementation may see level of detail and methods of construction of an ABC information model. They may also benefit from the knowledge of how information generated by an ABC systems is actually used by companies. All this may help to make better decision about ABC implementation and if the decision is to implement ABC, it may help to implement it successfully. From the theoretical point of view the research carried out makes it possible to establish a general tendency: modifications in costing systems applied in Polish enterprises and development of management accounting practice such as ABC follows the same general direction as management accounting practice in the world.Wnioski z przeprowadzonych badań mają znaczenie zarówno teoretyczne jak i praktyczne. Z praktycznego punktu widzenia, przedsiębiorstwa rozważające implementację ABC w przyszłości powinny mieć świadomość czynników wpływających na implementację ABC jak również problemów, które mogą się w procesie implementacji pojawić. Menedżerowie rozważający implementację ABC muszą zdawać sobie sprawę z poziomu szczegółowości i sposobów budowy systemu informacyjnego rachunku kosztów działań. Mogą oni również skorzystać z wiedzy o sposobach wykorzystania informacji z systemów rachunku kosztów działań. Wiedza ta może sprzyjać podejmowaniu lepszych decyzji odnośnie implementacji systemów ABC, a jeżeli decyzja o implementacji zostanie podjęta, może się przyczynić do zwiększenia prawdopodobieństwa zakończenia procesu wdrożenia sukcesem. Z teoretycznego punktu widzenia, przeprowadzone badania mogą się przyczynić do określenia ogólnej tendencji: modyfikacje systemów rachunku kosztów w przedsiębiorstwach w Polsce oraz wdrażanie nowoczesnych metod rachunkowości zarządczej takich jak ABC, zmierza w podobnym kierunku jak praktyka rachunkowości zarządczej na świecie