Industry transformation towards service logic: A business model approach (original) (raw)
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Towards a service-based business model-Key aspects for future competitive advantage
European Management Journal, 2010
Many product-based companies are seeking to increase their competiveness by moving towards a service-based business model. This research is based on a multiple case study of seven manufacturing companies and by using the business model concept it links managerial activities to a service innovation framework to emphasise how companies can best take advantage of a new service-based business model. Findings indicate that companies need to focus on all areas of their business models in a holistic fashion, and not just change isolated elements. Among other challenges, companies must develop their abilities to build relationships with customers, to visualize the intangible value of their service offerings, and to advance a dynamic service offering portfolio that is adaptive to changing customer needs. ª
Service as business logic: implications for value creation and marketing
Journal of Service Management, 2011
Purpose -The purpose of this article is to analyze the scope, content and nature of value co-creation in a service logic-based view of value creation, addressing the customer's perspective in a supplier-customer relationship. The nature of the activities and the roles of the supplier and the customer in value creation and co-creation are analyzed. Furthermore, the purpose is to discuss what implications for marketing can be derived from this analysis. Design/methodology/approach -The article analyzes the marketing implications that follow from the pivotal role of interactions in service provision. The article, thus, builds on a long history in service marketing research pointing at the impact on the content and scope of marketing of customer-supplier interactions. Findings -In this article, it is concluded that creating customer value is a multilaned process consisting of two conceptually distinct subprocesses. These are the supplier's process of providing resources for customer's use and the customer's process of turning service into value. The article results in five service logic theses which provide an understanding of the process of value creation and its implications for marketing. The theses offer a terminology that helps researchers and practitioners to understand the various roles of suppliers and customers in value creation and to analyze opportunities for co-creation of value. Originality/value -The findings of this article challenge some of the salient propositions of the emerging service-dominant logic, i.e. customers as co-creators of value, and firms can only make value propositions. The role of marketing is reframed beyond its conventional borders.
This study develops further one of the most popular business model frameworks, the business model canvas, into a Service Logic Business Model Canvas to better take into account service logic principles. Here, the term “service logic” covers the basic principles of the contemporary business logics: service-dominant logic (SDL), service logic, and customer-dominant logic (CDL). The knowledge gap that the present study aims to fulfil is twofold. Firstly, the literature on service logic includes little knowledge on how to apply this thinking on the practical business level. Secondly, the business model literature offers very little knowledge on how to make business models to follow the service logic. By using the interactive research and constructive approach, this study develops a tool for designing service that takes into account multiple stakeholder perspectives. This tool, the Service Logic Business Model Canvas, includes both the provider’s viewpoint (value capture) and the customer’s viewpoint (value creation). Based on an empirical study, this tool seems to be relevant and simple to use, and when integrated into a service design process, it may help companies to implement the service logic.
Business model innovation through the adoption of service logic: evolving to servification
Journal of service theory and practice, 2023
Purpose-In servitization research, there has been a call to move further toward the development of business models based on a service approach. This article aims to answer this call by adopting service logic (SL) and developing strategies and organizational resources and processes to create a service-centric business model called servification, defined as the process of identifying and developing strategies and organizational resources and processes to create a business model based on SL. Design/methodology/approach-This article is conceptual and extends servitization in the direction of service-centric business model innovation by drawing on and extending SL. Findings-The article defines service as a higher-order concept according to SL and develops the concept of a helping strategy as the foundation for a service-based business model. Further, it develops a typology of organizational resources and processes that must be developed for the emergence of such a business model. Research limitations/implications-Since this article is the first to conceptually develop servification, more both theoretical and empirical research is naturally required. The development of servification takes servitization in the direction of service-based business model innovation and also contributes to the research on SL. Practical implications-Servification enables the development of service-centric strategies and organizational resources and processes and service-based business models. Originality/value-This article is the first to adopt SL in studies of business model innovation.
- Business Model Development towards Service Management 4.
There is an increasing interest to ensure operational and maintenance (O&M) operations from a strategic perspective, and there are opportunities for both producing companies and service providers to gain benefits. Research shows that the combined business models (products combined with services) have a positive effect on the business. Likewise, it is profitable to think strategically and in long term for enterprises offering maintenance services, especially using performance-based models. But for achieving these benefits the view of the business has to change. The focus should be on the values created and not in the offers in form of products or services. Moreover, the company needs to position itself as an actor not only in the value chain, but in a wider context referred to as the business ecosystem. Making such a shift of focus is hard though, and there is a need to understand both the current state of the business as well as the potential future directions.
Service logic revisited: who creates value? And who co-creates?
European Business Review, 2008
Purpose -In the discussion on service-dominant logic and its consequences for value creation and marketing the inner meaning of the value-in-use notion and the nature of service marketing have not been considered thoroughly. The purpose of this paper is to analyze the meaning of a service logic as a logic for consumption and provision, respectively, and explore the consequences for value creation and marketing. Design/methodology/approach -Being a research-based paper, the topic is approached by theoretical analysis and conceptual development. Findings -Discussing the differences between value-in-exchange and value-in-use, the paper concludes that value-in-exchange in essence concerns resources used as a value foundation which are aimed at facilitating customers' fulfilment of value-in-use. When accepting value-in-use as a foundational value creation concept customers are the value creators. Adopting a service logic makes it possible for firms to get involved with their customers' value-generating processes, and the market offering is expanded to including firm-customer interactions. In this way, the supplier can become a co-creator of value with its customers. Drawing on the analysis, ten concluding service logic propositions are put forward.
Towards service logic: The unique contribution of value co-creation
2009
The underpinning logic of value co-creation in service logic is analysed. It is observed that three of the ten foundational premises of the so-called service-dominant logic are problematic and do not support an understanding of value-co-creation and creation that is meaningful for theoretical development and decision making in business and marketing practice. Without a thorough understanding of the interaction concept, the locus and nature of value co-creation cannot be identified. Based on the analysis in the present article it is observed that a unique contribution of a service perspective on business (service logic) is not that customers always are co-creators of value, but that under certain circumstances the service provider gets opportunities to co-create value together with its customers. Finally, the three problematic premises are reformulated accordingly.
Value co-creation in service logic: A critical analysis
Marketing Theory, 2011
The underpinning logic of value co-creation in service logic is analysed. It is observed that some of the 10 foundational premises of the so-called service-dominant logic do not fully support an understanding of value creation and co-creation in a way that is meaningful for theoretical development and decision making in business and marketing practice. Without a thorough understanding of the interaction concept, the locus as well as nature and content of value co-creation cannot be identified. Value co-creation easily becomes a concept without substance. Based on the analysis in the present article, it is observed that the unique contribution of a service perspective on business (service logic) is not that customers always are co-creators of value, but rather that under certain circumstances the service provider gets opportunities to co-create value together with its customers. Finally, seven statements included in six of the foundational premises are reformulated accordingly.