Service Innovation - A Business Model Approach

• Many manufacturers change their traditional business models as they offer more services and integrated solutions. Service innovation is not limited to the service offering and the service production processes as it can likewise modify or change other parts of the business system, creating a new business model. The business model, here with three dimensions called Offering, Market position, and Operative platforms, is a tool to analyze service innovation from a holistic perspective. It is found that service innovation takes place in all three dimensions as Offering innovation, Position innovation and Process innovation respectively. Together, these three innovations form what is called a Paradigm innovation. The interdependencies between the dimensions of the business model are important to understand when managing service innovation. Additionally, firms need to have an understanding of how one type of service innovation affects other parts of the service system and the business model.  

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TECHNOLOGY

TEKNIKVETENSKAP

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