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: A business model approach - December Paper

last modified Jan 16, 2014 11:34 AM

Industry transformation towards service logic: A business model approach
Anna Viljakainen, Marja Toivonen and Maiju Aikala

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.

Filed under:

RSS Feed Latest news

Webinar - High-Quality Prediction Intervals for Deep Learning

Jun 11, 2018

11 June 2018 - High-Quality Prediction Intervals for Deep Learning: A Distribution-Free, Ensembled Approach - by Tim Pearce, Mohamed Zaki, Alexandra Brintrup, Andy Neely

Theme Update - Blockchains in Smart Services

Jun 06, 2018

In May, Veronica and her team worked very hard on the first practical phase of the project – the Codification of the Blockchain Prototype for the CAT/Perkins’ Supply Chain.

Project Update - OMMS: the Wireless Micro-Factory that will Treat People with Cancer

Jun 06, 2018

The OMMS micro-factory project lead by Dr Veronica Martinez made a great progress this month.

June 2018 Newsletter

Jun 04, 2018

Find out what the Cambridge Service Alliance have been doing and how you can get involved.

Rare-events classification: An approach based on Genetic Algorithm and Voronoi Tessellation

May 31, 2018

by Abdul Rauf Khan, Mohamed Zaki, Henrik Schiøler, and Murat Kulahci. The paper was accepted at 'The 22nd Pacific-Asia Conference on Knowledge Discovery and Data Mining (PAKDD)', a leading international conference in the areas of knowledge discovery and data mining (KDD). In this paper, Mohamed and co-authors propose a novel strategy for data mining based on partitioning of the feature space through Voronoi tessellation and Genetic Algorithm, where the latter is applied to solve a combinatorial optimization problem.

View all news

Upcoming events

Shift to Services Executive Education Programme

Nov 07, 2018

IfM, Cambridge, UK

Ecosystems Strategy One Day Course

Nov 15, 2018

IfM, Cambridge

Upcoming events