skip to primary navigationskip to content

Cambridge Service Alliance

developing new understanding and approaches to complex service systems

Studying at Cambridge

 

Industry transformation towards service logic

last modified Mar 26, 2015 12:04 PM
The December 2013 Paper on 'Industry transformation towards service logic: A business model approach' by Anna Viljakainen, Marja Toivonen and Maiju Aikala
Industry transformation towards service logic

December 2013 Paper

 

This article tackles the issue of industrial transition into value- and service-based business, and offers a managerial tool on how customer value is turned into profitable business. It suggests a new business model construct based on the service-dominant approach that analyses customers as value co-creators, not as targets of selling. The aim is to depict the managerial opportunities to influence value co-creation. The article starts from the well-known business model canvas by Osterwalder, which is modified to include the active role of customers. The modification has been carried out step by step in four main components of a business model: the resources of a firm, value proposition, market characteristics and revenue model. The new construct points out the importance of the understanding of customer context and the fostering of collaborative interaction with customers. It also highlights an effectual way of using a firm’s resources: one and the same resource can be more or less valuable depending on how it is used. The new business model construct is applicable in both service and manufacturing firms. It is particularly useful in servitizing manufacturing, i.e. in the companies that include services in their total offering while having material products as their business core. The broadening repertoire of services contributes in these companies to the awareness of the significance of value cocreation. The empirical material of the article illustrates this development in the media sector, more specifically in magazine publishing. Companies in this sector increasingly aim to be present in their readers’ life and encourage the emergence of communities that support the value creation of participants and function as platforms for idea generation.

[paper]

RSS Feed Latest news

New Paper - Digital transformation: harnessing digital technologies for the next generation of services

Jun 21, 2019

Check out our recent commentary paper published at the Journal of Services Marketing

The future of digital services and platforms

May 23, 2019

Cambridge Service Alliance Community of Interest Meeting - April 2019

New Paper: Servitization: A contemporary thematic review of four major research streams

May 21, 2019

This study identifies the key themes and research priorities in servitization literature over thirteen years from 2005 and 2017, based on four major research streams (general management, marketing, operations, and service management).

New paper - Redistributed Manufacturing and the Impact of Big Data: A Consumer Goods Perspective

May 21, 2019

This paper builds a conceptual framework to explore whether big data combined with new manufacturing technologies can facilitate redistributed manufacturing (RDM).

HCL joins the Cambridge Service Alliance

Apr 23, 2019

HCL joined the Cambridge Service Alliance as a strategic digital services partner.

View all news