| 1. |
- Bagchi, Kaushik, et al.
(author)
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From R to D II : The Impact of Policies, Platforms and Business Models on R&D Trajectories
- 2024
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In: Academy of Management Annual Meeting Proceedings. - : Academy of Management. - 0065-0668.
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Conference paper (peer-reviewed)abstract
- In the second edition of our symposium devoted to exploring the dynamics of moving from research to development, we examine how demand side factors influence this trajectory. This focus resonates perfectly with this year’s theme of “Innovating for the Future - Policy, Purpose, and Organizations”. We present four empirical studies that explore how policy incentives, mandatory disclosure requirements, platform market dynamics, and distinct organizational business models each impact project outcomes. These four studies underscore both the opportunities as well as the challenges in designing levers to incentivize and organize innovation. Through this symposium we hope to spark future research that views innovation as a dynamic process shaped by social and business needs.
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| 2. |
- Chen, Yihua, et al.
(author)
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On the road to digital servitization – The (dis)continuous interplay between business model and digital technology
- 2021
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In: International Journal of Operations & Production Management. - : Emerald Group Publishing Limited. - 0144-3577 .- 1758-6593. ; 41:5, s. 694-722
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Journal article (peer-reviewed)abstract
- Purpose – The authors seek to understand the process of digital servitization as a shift of manufacturing companies from the provision of standard products and services to smart solutions. Specifically, the authors focus on changes in the business model (i.e. the value proposition, the value delivery system and the value capture mechanism) for digital servitization.Design/methodology/approach – The authors examine a Chinese air conditioner manufacturer, Gree, who became the global leader with their smart solutions. These solutions included performance-based contracts underpinned by artificial intelligence (AI)-powered air conditioners that automatically adjust to environmental changes and are capable of remote monitoring and servicing thanks to its Internet of things (IoT) technology.Findings – To successfully offer smart solution value propositions, a manufacturer needs an ecosystem value delivery system composed of suppliers, distributors, partners and customers. Once the ecosystem relationships are well aligned, the manufacturer gains value with multiple value capture mechanisms (i.e. efficiency, accountability, shared customer value and novelty). To arrive at this point, a manufacturer has to pass through different stages that are characterized by both discontinuous and continuous interplay between business models and digital technologies. At the beginning of each stage, new value propositions and value delivery systems are first discontinuously created and then enabled with digital technology. As a result, new value capture mechanisms are activated. Meanwhile, the elements of the existing business model are continuously improved.Research limitations/implications – By combining process-perspective and business-model lenses, the authors offer nuanced insights into how digital servitization unfolds.Practical implications – Executives can obtain insights into the business model elements, they need to change over the course of digital servitization and how to manage the process.Originality/value – A longitudinal case study of a traditional manufacturer that has achieved stellar success through digital servitization business models development.
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| 3. |
- Jovanovic, Marin, et al.
(author)
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One step at a time: Sequence and Dynamics of Service Capability Configuration in Product Firms
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Other publication (other academic/artistic)abstract
- The purpose of this paper is to explore the process of service capability base development in manufacturing firms. While scholars mostly studied capabilities in isolation we argue that it seems to be important to assess how service capabilities are interrelated as well as how a firm orchestrate their development and deployment. Study cross-compare 10 national subsidiaries of one capital equipment manufacturer to explore the effectiveness of their service capability base development processes. Results suggest that successful organizations opt for a sequential development of three service capability clusters, which we subsequently label the ‘presence’ (first), ‘progress’ (second) and ‘process’ cluster (third). Furthermore, our cases suggest that less successful organizations either fail to fully develop one or more of these capability clusters; they develop them simultaneously or in a different sequence. The understanding of the process may assist the decision makers to prioritize activities and gradually invest in service business.
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| 4. |
- Parida, Vinit, 1983-, et al.
(author)
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Orchestrating industrial ecosystem in circular economy : A two-stage transformation model for large manufacturing companies
- 2019
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In: Journal of Business Research. - : Elsevier. - 0148-2963 .- 1873-7978. ; 101, s. 715-725
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Journal article (peer-reviewed)abstract
- Making the transition to a circular economy is an important goal for society and individual companies, particularly in resource-intensive manufacturing industries. Yet the complexity and interdependencies of such an undertaking mean that no single company can achieve it alone and ecosystem-wide orchestration is necessary. Based on a qualitative study of six large manufacturing companies (ecosystem orchestrators) and their ecosystem partners, we develop a process model that describes the scarcely understood process of ecosystem transformation toward a circular economy paradigm. We provide evidence that ecosystem orchestrators achieve the transition toward a circular economy in two stages: 1) ecosystem readiness assessment and 2) ecosystem transformation. In each stage, specific and complementary mechanisms are deployed. The article elaborates on ecosystem transformation mechanisms and their purpose, use, and interdependencies in moving toward a circular economy paradigm.
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| 5. |
- Sjödin, David, 1983-, et al.
(author)
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How Can Large Manufacturers Digitalize Their Business Models? A Framework for Orchestrating Industrial Ecosystems
- 2022
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In: California Management Review. - : Sage Publications. - 0008-1256 .- 2162-8564. ; 64:3, s. 49-77
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Journal article (peer-reviewed)abstract
- For manufacturers, remaining competitive depends on their ability to digitalize their business models (i.e., offer digital and digitally enhanced products and services). To achieve this, they must engage with new digital partners and help their existing suppliers, partners, and other stakeholders to digitalize. Orchestrating this growing ecosystem is challenging. Manufacturers struggle with this endeavor because of specific barriers associated with their existing legacy business model and related to their lack of digital vision, product-centric value chains, and a bias toward firm-centered profit formulas. To overcome these barriers, leading manufacturers have developed new approaches to ecosystem orchestration.
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| 6. |
- Sjödin, David, 1983-, et al.
(author)
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Value Creation and Value Capture Alignment in Business Model Innovation : A Process View on Outcome‐Based Business Models
- 2020
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In: The Journal of product innovation management. - : John Wiley & Sons. - 0737-6782 .- 1540-5885. ; 37:2, s. 158-183
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Journal article (peer-reviewed)abstract
- Industrial manufacturers are innovating their business models by shifting from selling products to selling outcome‐based services, where the provider (manufacturer) guarantees to deliver the performance outcomes of the products and services. This form of business model innovation requires a profound yet little understood shift in how value is created, delivered, and captured. To address this research gap, our study examines two successful and four unsuccessful cases of this shift. We find that effectiveness in business model innovation hinges on the three process phases that unfold in collaboration with the customers: value proposition definition, value provision design, and value‐in‐use delivery. We also find that that success is determined by the alignment of specific value creation and value capture activities in each phase: identifying value creation opportunities—agreeing on value distribution in value proposition definition, designing the value offering—deciding on the profit formula in the value provision design, and finally refining value creation processes—regulating incentive structures in the value‐in‐use delivery. Our process model contributes to the literature and practice on business model innovation by providing a thorough understanding of how alignment of value creation and value capture processes is ensured, whilst paying special attention to their interdependence and the interactions between provider and customer.
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| 7. |
- Sjödin, David, 1983-, et al.
(author)
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Value creation and value capture alignment in the shift to open business models
- 2019
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In: Annual Meeting Proceedings. - : Academy of Management.
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Conference paper (other academic/artistic)abstract
- This study argues that successful shift to open business models relies on aligning value-creation and value-capture activities through interactive processes involving both provider and customer. Yet, little is known about how such processes unfold. To address these research gaps, this study examines how provider-customer relationships unfold by examining outcome-based contracts (OBC). Data from two successful and four failed OBC relationships within the manufacturing and process industry demarcates three phases in the shift to open business models - defining value potential, designing value delivery and delivering value improvements. The success or failure of each phase stems from the interplay and alignment between value creation and value capture activities specific to that phase, instead of focus on value creation in one phase and value capture in another. More precisely, the process model shows that the provider and the customer engaged in OBC relationship iterate and align between: 1) revising the value-creation logic and assessing the value-capture potential 2) formulating value-creation processes and constructing value-capture mechanisms and finally 3) enhancing value-creation activities and regulating value capture. This process model contributes to the literature streams on open business models and servitization by showing that both providers and customers needs to be actively involved in managing the dynamic interdependencies between value creation and value capturing activities in the shift to open business models and OBC.
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| 8. |
- Tabares, Sabrina, et al.
(author)
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Revenue models for digital services in the railway industry: A framework for choosing the right revenue model
- 2023
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In: Journal of Business Research. - : Elsevier. - 0148-2963 .- 1873-7978. ; 165
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Journal article (peer-reviewed)abstract
- While digital servitization provides manufacturing companies with the potential to earn additional revenues in the transition process from physical to digital offerings, the implementation of adequate value-capturing mechanisms is a major hurdle. The literature discerns little on the factors that influence the choice of revenue models for digital services. To address this knowledge gap, we build on a case study approach involving two global manufacturing companies in the railway industry that have experience in offering diverse digital services. The analysis reveals specific features and characteristics of three major revenue models for digital services – namely, subscription, usage-based, and performance-based revenue models. In addition, we identify overarching factors influencing the choice of revenue models for digital services. They are related to a) customer digital readiness, b) digital service sophistication, and c) digital ecosystem partnerships. Building on these influencing factors, we propose a framework that recommends that companies evaluate revenue models in relation to specific digital services. We furnish several theoretical contributions to the digital servitization literature and provide managerial implications for practitioners to assist in the choice of revenue models for digital services.
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| 9. |
- Visnjic, Ivanka, et al.
(author)
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The path to outcome delivery: Interplay of service market strategy and open business models
- 2018
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In: Technovation. - : Elsevier. - 0166-4972 .- 1879-2383. ; 72-73:April - May 2018, s. 46-59
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Journal article (peer-reviewed)abstract
- Firms in a variety of manufacturing sectors as well as the software industry have increasingly embraced services alongside their product portfolios in order to improve financial performance. Yet, the key question “How do service market strategy change and the accompanying business model change interact, and how does their interplay affect value creation?” remains open. Relying on twelve case studies of firms that have shifted towards providing highly advanced services (e.g. outcome-based contracts), theoretical propositions concerning the interplay of market strategy and business model on value creation are derived. The firms studied report two interdependent changes: first, they evolve the market strategy from provision of pure products to provision of services and then outcomes, in order to achieve a better fit with customer needs and to grow their service businesses. Second, they rely increasingly on partners and suppliers to provide new activities that are outside their competence base. This 'open business model' allows them to grow their new service businesses effectively and efficiently. At the same time, however, the shift to a service market strategy requires enhanced accountability to customers and increases the threat of penalties in the case of failure, while reliance on partners and suppliers leads to loss of control over the activity system and increases the threat of failure due to third party dependency. Thus, this paper finds that the success of firms that shift to services and outcomes hinges on their ability to balance the trade-off between increased value (i.e. growth, efficiency and effectiveness) and increased uncertainty associated with service market strategy/open business model interplay.
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| 10. |
- Visnjic, Ivanka, et al.
(author)
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What brings the value to outcome-based contract providers? Value drivers in outcome business models
- 2017
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In: International Journal of Production Economics. - : Elsevier. - 0925-5273 .- 1873-7579. ; , s. 169-181
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Journal article (peer-reviewed)abstract
- Outcome-based contracts (OBCs) are frequently seen as the most advanced level of service offering that product firms offer. To deliver OBCs, product firms have to shift from the traditional product business model (PBM) to adopting an outcome business model (OBM). This constitutes a major change that rearranges their activity system and therefore profoundly changes their value-creation process. The literature tells us little about what this change entails and the key value drivers that OBC providers focus on as they adopt outcome business models. To tackle this topic, we study four global capital equipment manufacturers that recently started to offer highly advanced forms of OBC: Bombardier, Caterpillar, Hitachi and Rolls Royce. We learn that, apart from recognized value drivers, such as efficiency, novelty, lock-in and complementarity, OBC providers draw value from what we have labelled accountability value. Second, the value drivers are more diverse in OBMs than in traditional PBMs. Third, while in PBMs there is a trade-off between value drivers, in OBMs value drivers are mutually reinforcing, as they create a synergistic interplay. At the same time, however, firms are exposed to some sources of value loss as they start providing OBCs and shift to OBMs. We contribute to the literature by connecting the OBM literature with the broader value-creation literature and identifying (specific) value drivers as they appear in the OBM context, as well as the relationships among them.
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