From free to fee: changing the revenue model for individual services

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Glaa, BesmaLinköping university (author)

From free to fee : changing the revenue model for individual services

Article/chapterEnglish2017

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Birmingham, UK :Aston university,2017
printrdacarrier

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LIBRIS-ID:oai:DiVA.org:kau-75435
https://urn.kb.se/resolve?urn=urn:nbn:se:kau:diva-75435URI

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Language:English
Summary in:English

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SwePubSwePub

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Subject category:ref swepub-contenttype
Subject category:kon swepub-publicationtype

Notes

Purpose: Industrial services have traditionally been provided for free to support product sales. Nowadays, many manufacturers have built a profitable service business while others are struggling to improve their service profitability. Overall, most research focus on service infusion in the value proposition or servitization of the organization. Far less attention has been given to how firms start to charge for free services. The purpose of this research is to increase understanding of how manufacturers change the revenue model for individual services from free to fee. Design/Methodology/Approach: The research was performed as a two-stage research project involving a multiple case study followed by an action research project. First, a multiple case study was performed in eight firms. Data was collected through interviews and workshops with the participating firms. Second, an action research study was performed with a manufacturer working with changing the revenue model for individual services from free to fee. Findings: The current study identified a process with three stages for shifting from service for free to service for fee. The first step is turning the service from a cost center to a profit center. The second step is to create service scenarios for a service business. The third step is to implement specific strategies to break free from free service. The present research identified three specific service scenarios and four strategies to break free from free service. Originality/Value: The change of business model has been an essential step in most models for service infusion and for the transition from service for free to service for fee. The present study expands on the process on a detailed level followed by manufacturers to turn individual services from free to service for fee.

Subject headings and genre

SAMHÄLLSVETENSKAP Ekonomi och näringsliv Företagsekonomi hsv//swe
SOCIAL SCIENCES Economics and Business Business Administration hsv//eng
Business Administration
Företagsekonomi

Added entries (persons, corporate bodies, meetings, titles ...)

Witell, Lars,1972-Linköping university(Swepub:kau)larswite (author)
Löfgren, Martin,1975-Karlstads universitet,Handelshögskolan (from 2013),Centrum för tjänsteforskning (from 2013)(Swepub:kau)martlofg (author)
Gustafsson, Anders,1964-Karlstads universitet,Handelshögskolan (from 2013),Centrum för tjänsteforskning (from 2013)(Swepub:kau)andersgu (author)
Linköping universityHandelshögskolan (from 2013) (creator_code:org_t)

Related titles

In:Proceeding of the Spring Servitization ConferenceBirmingham, UK : Aston university, s. 172-1819781854494184

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