Visualising product-service system business models

Copyright © 2014. Copyright in each paper in this conference’s proceedings is the property of the author(s). Permission is granted to reproduce copies of these works for purposes relevant to the above conference, provided that the author(s), source and copyright notice are included on each copy. For other uses, including extended quotation, please contact the author(s).The paper addresses the issue of how to visualise innovative business models at various stages of the design and development process. The focus is on a particular type of business model, defined Product-Service Systems (PSSs), characterised by an integrated product-service offering, but can be generalised to other business model innovations. The paper presents a visualisation system based on a formalised business model ontology and a set of visualisation tools, and discusses how it can be used to enhance internal and external communication and improve dialogue and co-design activities inside the company and with external stakeholders

Product-service systems and circular business models: a theoretical and empirical contribution

Product-Service System (PSS) is defined as a combination of product and service with the aim of fulfilling customer needs. PSS is described in many studies as one of the main tools to achieve Circular Business Models (CBM), and thus achieving more sustainable practices. The adoption of a servitization approach leads to several advantages and benefits for both, customers and companies. However, companies may face some challenges when they try to switch from a traditional business model to a business model based on services. Thus, after an initial literature review based on the relation between servitization (PSS), circular economy, and the development of CBMs, interviews were carried out with Italian companies that have adopted business models based on servitization. The goal was to understand the importance of switching to a BM based on services and the main challenges that companies face and continue to incur on while they try to innovate and increment their level of circularity and/or servitization

IoT powered servitization of manufacturing – an exploratory case study

More than ever companies are challenged to rethink their offerings while simultaneously being provided with a unique opportunity for creating or recreating their product-service systems. This paper seeks to address how servitisation can utilise the third wave of Internet development, referred to as the Internet of Things (IoT), which may unlock the potential for innovative product-service systems on an unprecedented scale. By providing an analysis of this technological breakthrough and the literature on servitisation, these concepts are combined to address the question of how organisations offering product-service systems can reap the benefits that the IoT. An analysis of three successful IoT implementation cases in manufacturing companies, representing different industry sectors such as metal processing, power generation and distribution, is provided. The results of the empirical research presented in the paper provide an insight into different ways of creating value in servitisation. The paper also proposes a framework that is aimed at proving a better understanding of how companies can create value, and add it to their servitisation processes with, the data obtained by the IoT based solutions. From the value chain perspective, IoT aided servitisation enables organisations to extend their value chains in order better serve their customers which, in turn, might result in increased profitability. The article proposes further research avenues, and offers valuable insight for practitioners.fi=vertaisarvioitu|en=peerReviewed

Servitization and advanced business services as levers for competitiveness

In the servitization section of IMM’s special issue Vol 60/2017, we examine the current state of the domain of servitization and provide insight into emerging trends

Guidelines and facilitators for minimizing barriers in the implementation of product-service systems: a framework focused on circular economy

The transition to a circular economy is gaining notoriety as society demands alternative forms of production and consumption. In this context, Product-Service Systems have the potential to reconcile economic and socio-environmental development. However, the implementation of Product-Service Systems has limitations, such as poor understanding of the system, difficulties in monitoring and establishing relationships with stakeholders. In order to guarantee guarantee a successful implementation of Product-Service Systems, there is a need to understand these organizational challenges and to present opportunities to mitigate these barriers. The goal of this paper is to identify facilitators and construct guidelines, capable of minimizing barriers in the implementation of a Product-Service System. To achieve this goal, a systematic literature review was conducted, contemplating bibliometric and content analysis (57 papers were read in full). The results of the bibliometric analysis point to the need to expand business proposals to different economic and cultural contexts, since they are mainly concentrated in developed countries. The content analysis presented a framework with guidelines, subguidelines, and facilitators, classified according to the PSS dimensions: provider, offer, and consumer. Thus, 111 facilitators were identified, and 26 subguidelines and 11 guidelines were built, demonstrating the contribution of the Circular Economy for the minimization of barriers in the implementation of the Product-Service System. The research highlights that approximately 73% of the facilitators correspond to the provider dimension, emphasizing the need to promote organizational changes and to adapt business proposals, adding value to the solution or to the results. However, the research highlights the need for the involvement of all stakeholders, where the customer must also promote changes in habits and an awareness of sustainable development. Finally, it is emphasized that this research provides a theoretical basis for the development of empirical studies, applying and expanding the knowledge of the interrelationship between Circular Economy and Product-Service Systems

The interplay of product modularity, service types, and servitization depth on firm performance:a moderated mediation model

The servitization literature has explored the role that product modularity plays in supporting service design and delivery. Importantly, product modularity has the potential to aid manufacturers in providing customized solutions on a larger scale, thereby strengthening firm performance. However, despite the prospective benefits of product modularity, manufacturers also need considerable servitization depth, which comprises service orientation, resources, and delivery systems, to provide services in a cost-effective manner. Taking this into account, the study both theoretically articulates and empirically tests relationships among product modularity, servitization depth, service types, and firm performance, employing a moderated mediation model. Using survey data collected from 204 manufacturers in the UK and German, the findings indicate that product modularity exerts a positive influence on firm performance, with servitization depth acting as a mediating factor. The mediation effect of servitization depth on the correlation between product modularity and firm performance was found to fluctuate based on the service types offered by the manufacturer. This study adds to the existing literature on servitization and the role of product modularity and servitization depth in achieving superior firm performance

Working through frame incongruences : A process perspective on (re)framing for digital servitization

Industrial firms are increasingly seeking new means of competitiveness through digital servitization that involves incorporating digital services and platforms. Despite the growing prominence of digital servitization, we have yet to understand how such changes are being framed, reframed, and unfold in industrial firms. To this end, we undertake an in-depth longitudinal exploratory case study of an industrial firm to understand the organizational framing and reframing activities vis-à-vis digital servitization. Our findings identify how motivational, diagnostic, and prognostic framing gradually unfolds over distinct phases. Specifically, our findings reveal the occurrence of frame incongruence among different groups of actors, compelling the firm to engage in strategies and tactics to achieve frame alignment. Notably, we identify that management engages in the alignment processes of frame extension, translation, and clarification, which creates a space of workable certainty. While transient in nature, this state of workable certainty serves as a catalyst in propelling the firm forward in its pursuit of a digital servitization strategy. By shedding light on the process of digital reframing that firms undertake in order to materialize their digital servitization strategy, our study contributes to a deeper understanding of this phenomenon. Moreover, we raise pertinent managerial implications for firms embarking on the path of digital servitization, emphasizing the imperative of continuous attention to the ongoing framing and reframing processes accompanying such change endeavors.© 2023 The Authors. Published by Elsevier Ltd. This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/).fi=vertaisarvioitu|en=peerReviewed

An Internal Perspective of Business Model Innovation in Manufacturing Companies

Business model innovation is increasingly being used as a concept in different academic fields, although it is still missing a ground theoretical conceptualization. This work aims at advancing the understanding of business model innovation from an internal perspective in manufacturing companies. It builds on a literature review regarding two main concepts – business model and business architecture – and proposes a set of key areas for internally-driven business model innovation. Six main areas have been identified: i) strategy & business goals; ii) organizational culture; iii) product and service management; iv) technology management; v) operations management; vi) performance management systems. Further research will analyze the innovation processes within each area, based on existing theoretical foundations and empirical studies. Moreover, new empirical studies will be performed to further investigate different potential pathways for business model innovation.This work builds on research initially undertaken on SustainValue project which received funding from the European Community´s Seventh Framework Programme (FP7/2007-2013) under grant agreement n°262931. Further review and analysis leading to these results was supported by the EPSRC Centre for Innovative Manufacturing in Industrial Sustainability (grant n° EP/I033351/1).This is the author accepted manuscript. The final version is available from IEEE via http://dx.doi.org/10.1109/CBI.2015.4

Literature review on industrial digital platforms : A business model perspective and suggestions for future research

Rapid digitalization of industries has led to the proliferation of complex industrial digital platforms; however, few industrial platform leaders have successfully established sustainable business models around their offerings. The need for a concrete definition of industrial digital platforms and their business models further complicates our understanding of the issue. In this prospecting review, we critically analyze the existing literature on industrial digital platforms to identify key research themes and research gaps and propose a future research agenda for the industrial digital platform literature from a business model perspective. Drawing on insights from research on industrial platforms, digitalization, digital servitization, and business-to-business (B2B) relationships, our analysis focuses on three key themes in defining the boundaries of industrial digital platforms and the crucial aspects of value creation, value delivery, and value capture on such platforms: (a) co-creative value creation, (b) digitally integrated value delivery, and (c) mutual value capture. The findings of this study and a future research agenda framework provide a roadmap for advancing the understanding of business models for industrial digital platforms. This research aims to contribute to the emerging field of industrial digital platforms and guide future research endeavors in this domain, unlocking the full potential of these platforms for businesses and industries.© 2023 The Authors. Published by Elsevier Inc. This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/).fi=vertaisarvioitu|en=peerReviewed