Drivers of Change Impacting Outcome-Based Business Models in Industrial Production Equipment

Abstract

The objective of this paper is to explore the potential future changes on the value and feasibility of Outcome-Based Contracts (OBC) and Outcome Business Models (OBM) in the setting of industrial production equipment. As companies and industries are implementing these business models characterized by long value co-creation contracts, the impact of the world around changing is becoming both a risk as well as in other cases an opportunity for increased value creation. We conducted a futures research project with the emphasis in understanding the external changes impacting the value of the OBCs and OBMs for the contract parties. The paper contributes by highlighting the impact of Drivers of Change on OBCs for both parties as well as identifying a set of Drivers of Change for industrial equipment manufacturers and users.