Roadmap for business models definition in manufacturing companies (original) (raw)
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Extended Product Business Model Development in Four Manufacturing Case Studies
Procedia CIRP, 2014
Business Models in manufacturing are focused on selling tangible products and are in danger of being copied by competitors from emerging economies. In response, the value share of services is increased to parity with the product and beyond. To realize such an "Extended Product" (EP), manufacturers need to establish a "Manufacturing Service Ecosystem" (MSE) with adequate service providers, requiring radical changes to the business model. This paper describes a methodology that enables manufacturers to integrate EP and MSE into their business models and analyzes the results of its application in four manufacturing case studies from different countries and industrial sectors.
Developing business models for extended products in manufacturing service ecosystems
The growing demand for integrated solutions forces manufacturers of industrial goods to combine their products with service components to Product-Service Systems, or Extended Products (EP). The new value proposition of the EP also requires an extended network of business partners, which are both not included in the traditional business models of manufacturing companies. The purpose of this paper is to investigate classic business models in manufacturing and create an EP Business Model Framework based on the Business Model Canvas to help manufacturers transform their business models in the servitization process. A special focus is given to value innovation and collaboration in Manufacturing Service Ecosystems (MSE). In an MSE, different organizations and individuals can work together with common or complementary objectives on new value added combinations of manufactured products and product-related services. The approach is exemplified by the evolution of the business model of a machine tool manufacturer.
- 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.
Future of Business Models in Manufacturing
Sustainable Production, Life Cycle Engineering and Management, 2017
In order to achieve systematic change in pursuit of sustainable manufacturing, both a strategic long-term perspective employing methods from future studies and a concrete implementation of the knowledge gained in sustainable business models are necessary. In this chapter, the concepts and exemplary methods for sustainable business model innovation are introduced with a special focus on sustainable manufacturing. Circular Economy-based business models and Product Service Systems are explained as examples of sustainable business models, along with a deduction of sustainability factors for both examples. The fruitful combination of future studies and sustainable business model development is illustrated in the example of a so-called living factory, a modular and adaptive production environment which integrates aspects of Circular Business Models and Product Service Systems.
International Journal of Innovation Management, 2013
Firms increasingly rely on business model innovation as a means to face challenges of a world in transition. We identify the conscious integration of products and services, i.e., product service systems, as a valuable strategy to radically innovate product-focused business models. Applying an exploratory multiple case study approach, we uncover five distinct kinds of services that specifically help firms to innovate their business model. These are (1) business consulting, (2) comprehensive services, (3) educational services, (4) financing services, and (5) information management services. The influence of these services on three components of business model innovation (value propositions, value chain architectures, and revenue streams) is discussed. In total, our study emphasizes that integrating specific services with products is an important driver for business model innovations.
2006
The industrial products and service industry is a product oriented industry, where traditional business models based on value chain optimization have been refined over many years. However, in order to increase business value, innovative industrial product companies are increasingly looking for new m-Business services related to their core business. With the emergence of such virtual markets (services, information, knowledge, life-style support, security) we need a new paradigm for understanding and predicting business performance. The concept "value constellation " replaces the value chain. A m-Business model is not sustainable if it lacks a sound economic value proposition to the end-user. In order to analyze and validate value creation in m- Business systems we suggest using a conceptual modeling methodology with proper value ontology. We will demonstrate how such a methodology will allow us to de-compose value offerings with the aim of identifying new stakeholders and new value constellations.
Industry transformation towards service logic: A business model approach
This article contributes to the integration of two views that are relevant for the development of research in service management: the business model framework and the approach of service (-dominant) logic. Both approaches apply a value-based analysis, but until now the business model framework has focused on goods production and technological contexts. The integration with service logic brings to the fore the important role of customers and highlights the process of value co-creation. It broadens the application possibilities of business model thinking in service sectors, and supports the increasing customer orientation in manufacturing. Also service logic benefits from this integration which pinpoints how customer value is turned into profitable business. Based on the literature, the article suggests a new business model construct consisting of four main components: value co-creation, resource integration, value proposition and configuration of offerings, and financial aspects. The...
2006 International Conference on Mobile Business, 2006
The industrial products and service industry is a product oriented industry, where traditional business models based on value chain optimization have been refined over many years. However, in order to increase business value, innovative industrial product companies are increasingly looking for new m-Business services related to their core business. With the emergence of such virtual markets (services, information, knowledge, life-style support, security) we need a new paradigm for understanding and predicting business performance. The concept "value constellation" replaces the value chain.
Strategies for Extended Product Business Models in Manufacturing Service Ecosystems
2013
Customers are looking for solutions and benefits through complementary product and service components, so called Extended Products (EP). The servitization of manufacturing from physical products to EP also requires innovation of business models. They do not only describe the new value proposition of the EP, but the required network of business partners and the new revenue streams as well. The MSEE project is investigating new business models for servitization in Manufacturing Service Ecosystems (MSE). In this form of collaboration, different organizations and individuals work together with common or complementary objectives on new value added combinations of manufactured products and product-related services. Based on classic manufacturing strategies, the paper proposes new strategies for EP business models in MSE.
Interactive Business Models to Deliver Product-Services to Global Markets
IFIP Advances in Information and Communication Technology, 2013
The main aim of this paper is to propose a collaborative solution platform to design, assess and deploy technology-based business models, supporting the analysis and evaluation of business ecosystems for the manufacturing and delivery of customised product-services in global markets. The proposed platform will guarantee a common thread for the execution of a multi-stage gate reference process for the generation and consolidation of a technology-based business model, providing a consistent path from the idea generation to the production, delivery and commercialisation of a solution.