Open Science Research Excellence

Open Science Index

Commenced in January 2007 Frequency: Monthly Edition: International Publications Count: 30464


Select areas to restrict search in scientific publication database:
10002419
Service Business Model Canvas: A Boundary Object Operating as a Business Development Tool
Abstract:
This study aims to increase understanding of the transition of business models in servitization. The significance of service in all business has increased dramatically during the past decades. Service-dominant logic (SDL) describes this change in the economy and questions the goods-dominant logic on which business has primarily been based in the past. A business model canvas is one of the most cited and used tools in defining end developing business models. The starting point of this paper lies in the notion that the traditional business model canvas is inherently goods-oriented and best suits for product-based business. However, the basic differences between goods and services necessitate changes in business model representations when proceeding in servitization. Therefore, new knowledge is needed on how the conception of business model and the business model canvas as its representation should be altered in servitized firms in order to better serve business developers and interfirm co-creation. That is to say, compared to products, services are intangible and they are co-produced between the supplier and the customer. Value is always co-created in interaction between a supplier and a customer, and customer experience primarily depends on how well the interaction succeeds between the actors. The role of service experience is even stronger in service business compared to product business, as services are co-produced with the customer. This paper provides business model developers with a service business model canvas, which takes into account the intangible, interactive, and relational nature of service. The study employs a design science approach that contributes to theory development via design artifacts. This study utilizes qualitative data gathered in workshops with ten companies from various industries. In particular, key differences between Goods-dominant logic (GDL) and SDLbased business models are identified when an industrial firm proceeds in servitization. As the result of the study, an updated version of the business model canvas is provided based on service-dominant logic. The service business model canvas ensures a stronger customer focus and includes aspects salient for services, such as interaction between companies, service co-production, and customer experience. It can be used for the analysis and development of a current service business model of a company or for designing a new business model. It facilitates customer-focused new service design and service development. It aids in the identification of development needs, and facilitates the creation of a common view of the business model. Therefore, the service business model canvas can be regarded as a boundary object, which facilitates the creation of a common understanding of the business model between several actors involved. The study contributes to the business model and service business development disciplines by providing a managerial tool for practitioners in service development. It also provides research insight into how servitization challenges companies’ business models.
Digital Object Identifier (DOI):

References:

[1] T. S. Baines, H. W. Lightfoot, O. Benedettini and J. M. Kay, “The servitization of manufacturing: A review of literature and reflection on future challenges,” Journal of Manufacturing Technology Management, vol. 20, no. 5, pp. 547–567, 2009.
[2] R. Oliva and R. Kallenberg, “Managing the transition from products to services,” International journal of service industry management, vol. 14, no. 2, pp. 160–172, 2003.
[3] R. Wise, and P. Baumgartner, “Go downstream: the new profit imperative in manufacturing,” Harvard business review, vol. 77, no. 5, pp. 133–141, 1999.
[4] S. L. Vargo and R. F. Lusch, “Service-dominant logic: Continuing the evolution,” Journal of the Academy of Marketing Science, vol. 36, no. 1, pp. 1–10, 2008.
[5] B. Edvardsson, A. Gustafsson and I. Roos, “Service portraits in service research: A critical review,” International Journal of Service Industry Management, vol. 16, no. 1, pp. 107–121, 2005.
[6] C. Grönroos, Service management and marketing: a customer relationship management approach. Massachusetts, Toronto: Lexington Books, 1990.
[7] J. A. Fitzsimmons and M. J. Fitzsimmons, Service Management: Operations, Strategy, and Information Technology, 6th ed., New York: McGraw-Hill, 2008.
[8] P. R. Carlile, “Transferring, translating, and transforming: An integrative framework for managing knowledge across boundaries”, Organization Science, vol. 15, no. 5, pp. 555–568, 2004
[9] R. Amit and C. Zott, “Value creation in e-business,” Strategic Management Journal, vol. 22, no. 6–7, pp. 493–520, 2001.
[10] H. Chesbrough, “Business model innovation: It's not just about technology anymore,” Strategy & Leadership, vol. 35, no. 6, pp. 12–17, 2007.
[11] D. J. Teece, “Business models, business strategy and innovation,” Long Range Planning, vol. 43, no. 2–3, pp. 172–194, 2010.
[12] C. Zott and R. Amit, “Business model design and the performance of entrepreneurial firms,” Organization Science, vol. 18, no. 2, pp. 181– 199, 2007.
[13] H. Chesbrough and R. S. Rosenbloom, “The role of business model in capturing value from innovation: evidence from Xerox Corporation’s technology spin-off companies,” Industrial and Corporate Change, vol. 11, no. 3, pp. 529–555, 2002.
[14] P. H. Coombes and J. D. Nicholson, “Business models and their relationship with marketing: A systematic literature review,” Industrial Marketing Management, vol. 42, no. 5, pp. 656–664, 2013.
[15] A. Osterwalder and Y. Pigneur, Business model generation. Hoboken: Wiley, 2010.
[16] M. W. Johnson, C. M. Christensen and H. Kagermann, “Reinventing your business model,” Harvard Business Review, vol. 86, no. 12, pp. 50–59, 2008.
[17] S. M. Shafer, H. J. Smith and J. C. Linder, “The power of business models,” Business Horizons, vol. 48, no. 3, pp. 199–207, 2005.
[18] R. F. Lusch and S. L. Vargo, “Service-dominant logic: Reactions, reflections and refinements,” Marketing Theory, vol. 6, no. 3, pp. 281– 288, 2006.
[19] S. L. Star and J. R. Griesemer. Institutional Ecology, “Translations” and Boundary Objects: Amateurs and Professionals in Berkeley’s Museum of Vertebrate Zoology, 1907–39. Social Studies of Science, vol. 19, no. 3, pp. 387–420, 1989.
[20] D. Nicolini, J. Mengis and J. Swan, ”Understanding the role of objects in cross-disciplinary collaboration,” Organization Science, vol. 23, no. 3, pp. 612–629, 2012.
[21] L. Doganova and M. Eyquem-Renault, “What do business models do? Innovation devices in technology entrepreneurship,” Research Policy, vol. 38, no. 10, pp. 1559–1570, 2009.
[22] F. Hacklin and M. Wallnöfer, “The business model in the practice of strategic decision making: insights from a case study”, Management Decision, vol. 50, no. 2, pp. 166–188, 2012.
[23] A. Zolnowski, C. Weiß and T. Böhmann, “Representing service business models with the service business model canvas – The case of a mobile payment service in the retail industry”, Proceedings of the Annual Hawaii International Conference on System Sciences, pp. 718–727, 2014.
[24] A. Viljakainen, M. Toivonen and M. Aikala, “Industry transformation towards service logic: A business model approach,” Cambridge Service Alliance, Working Paper Series, Cambridge University Press, 2013.
[25] S. Gregor and A. R. Hevner, “Positioning and presenting design science research for maximum impact,” MIS Quarterly, vol. 37, no. 2, pp. 337– 355, 2013.
[26] T. Hakanen and E. Jaakkola, “Co-creating customer-focused solutions within business networks: A service perspecti
Vol:14 No:06 2020Vol:14 No:05 2020Vol:14 No:04 2020Vol:14 No:03 2020Vol:14 No:02 2020Vol:14 No:01 2020
Vol:13 No:12 2019Vol:13 No:11 2019Vol:13 No:10 2019Vol:13 No:09 2019Vol:13 No:08 2019Vol:13 No:07 2019Vol:13 No:06 2019Vol:13 No:05 2019Vol:13 No:04 2019Vol:13 No:03 2019Vol:13 No:02 2019Vol:13 No:01 2019
Vol:12 No:12 2018Vol:12 No:11 2018Vol:12 No:10 2018Vol:12 No:09 2018Vol:12 No:08 2018Vol:12 No:07 2018Vol:12 No:06 2018Vol:12 No:05 2018Vol:12 No:04 2018Vol:12 No:03 2018Vol:12 No:02 2018Vol:12 No:01 2018
Vol:11 No:12 2017Vol:11 No:11 2017Vol:11 No:10 2017Vol:11 No:09 2017Vol:11 No:08 2017Vol:11 No:07 2017Vol:11 No:06 2017Vol:11 No:05 2017Vol:11 No:04 2017Vol:11 No:03 2017Vol:11 No:02 2017Vol:11 No:01 2017
Vol:10 No:12 2016Vol:10 No:11 2016Vol:10 No:10 2016Vol:10 No:09 2016Vol:10 No:08 2016Vol:10 No:07 2016Vol:10 No:06 2016Vol:10 No:05 2016Vol:10 No:04 2016Vol:10 No:03 2016Vol:10 No:02 2016Vol:10 No:01 2016
Vol:9 No:12 2015Vol:9 No:11 2015Vol:9 No:10 2015Vol:9 No:09 2015Vol:9 No:08 2015Vol:9 No:07 2015Vol:9 No:06 2015Vol:9 No:05 2015Vol:9 No:04 2015Vol:9 No:03 2015Vol:9 No:02 2015Vol:9 No:01 2015
Vol:8 No:12 2014Vol:8 No:11 2014Vol:8 No:10 2014Vol:8 No:09 2014Vol:8 No:08 2014Vol:8 No:07 2014Vol:8 No:06 2014Vol:8 No:05 2014Vol:8 No:04 2014Vol:8 No:03 2014Vol:8 No:02 2014Vol:8 No:01 2014
Vol:7 No:12 2013Vol:7 No:11 2013Vol:7 No:10 2013Vol:7 No:09 2013Vol:7 No:08 2013Vol:7 No:07 2013Vol:7 No:06 2013Vol:7 No:05 2013Vol:7 No:04 2013Vol:7 No:03 2013Vol:7 No:02 2013Vol:7 No:01 2013
Vol:6 No:12 2012Vol:6 No:11 2012Vol:6 No:10 2012Vol:6 No:09 2012Vol:6 No:08 2012Vol:6 No:07 2012Vol:6 No:06 2012Vol:6 No:05 2012Vol:6 No:04 2012Vol:6 No:03 2012Vol:6 No:02 2012Vol:6 No:01 2012
Vol:5 No:12 2011Vol:5 No:11 2011Vol:5 No:10 2011Vol:5 No:09 2011Vol:5 No:08 2011Vol:5 No:07 2011Vol:5 No:06 2011Vol:5 No:05 2011Vol:5 No:04 2011Vol:5 No:03 2011Vol:5 No:02 2011Vol:5 No:01 2011
Vol:4 No:12 2010Vol:4 No:11 2010Vol:4 No:10 2010Vol:4 No:09 2010Vol:4 No:08 2010Vol:4 No:07 2010Vol:4 No:06 2010Vol:4 No:05 2010Vol:4 No:04 2010Vol:4 No:03 2010Vol:4 No:02 2010Vol:4 No:01 2010
Vol:3 No:12 2009Vol:3 No:11 2009Vol:3 No:10 2009Vol:3 No:09 2009Vol:3 No:08 2009Vol:3 No:07 2009Vol:3 No:06 2009Vol:3 No:05 2009Vol:3 No:04 2009Vol:3 No:03 2009Vol:3 No:02 2009Vol:3 No:01 2009
Vol:2 No:12 2008Vol:2 No:11 2008Vol:2 No:10 2008Vol:2 No:09 2008Vol:2 No:08 2008Vol:2 No:07 2008Vol:2 No:06 2008Vol:2 No:05 2008Vol:2 No:04 2008Vol:2 No:03 2008Vol:2 No:02 2008Vol:2 No:01 2008
Vol:1 No:12 2007Vol:1 No:11 2007Vol:1 No:10 2007Vol:1 No:09 2007Vol:1 No:08 2007Vol:1 No:07 2007Vol:1 No:06 2007Vol:1 No:05 2007Vol:1 No:04 2007Vol:1 No:03 2007Vol:1 No:02 2007Vol:1 No:01 2007