Business model innovation in product-service systems
Vaittinen, Eija (2014)
2014
Tuotantotalouden koulutusohjelma
Talouden ja rakentamisen tiedekunta - Faculty of Business and Built Environment
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Hyväksymispäivämäärä
2014-02-05
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:tty-201403051113
https://urn.fi/URN:NBN:fi:tty-201403051113
Tiivistelmä
Transformation from product oriented to more service oriented business models has been observed to create various advantages for companies especially in current competitive situation, where competition with price is pressing the profit margins down. Without proper knowledge on how business models are created, particularly in product-service systems context, this transformation can be difficult or even make or break the company. Furthermore, the literature considering business models for product service systems is still rather uncommon Thus this study aimed at shedding light on business model creation process in practice, describing what role an external researcher can have in this process and mapping the situation and attitudes towards services in engineering workshops.
This study was implemented as multi-method qualitative research and single case study, which focused on the case company’s business model creation process. In data collection of the study, observations of the case company’s process of creating business model were made. In addition, the interview study in engineering workshops was used to map the current situation of product-service systems in these traditionally product oriented companies. Moreover, the observations were used to illustrate external researcher’s role in case company’s business model creation process. The literature review described development of product-service systems and business model creation, taking also in consideration the construction industry context. It covered, furthermore, consultant client relationship and its characteristics.
Based on this research it may be said that the process of business model creation in case company revolved around similar issues as it does in the current literature, such as market segmentation and customer analysis. On the other hand, the process in the case company had not quite reached the business model described in the literature when data collection for this thesis ended. It remained more on business planning level. Additionally, research supported the views in which there is place for competitor element in business model framework. This study also supports earlier views; traditionally product oriented engineering workshops are still, according to this study, clearly more product than service oriented. There are clear differences in how these companies see overall service and how they view services in their companies, but in general workshops seemed to be rather close to each other at the assembly or system integrator stage. Considering researcher’s role in project several similar challenges and advantages in cooperation have been recognized as in the current literature. Information flow and mutual trust are observed to be extremely important, and careful consideration on how to use an external researcher is deemed valuable.
This study was implemented as multi-method qualitative research and single case study, which focused on the case company’s business model creation process. In data collection of the study, observations of the case company’s process of creating business model were made. In addition, the interview study in engineering workshops was used to map the current situation of product-service systems in these traditionally product oriented companies. Moreover, the observations were used to illustrate external researcher’s role in case company’s business model creation process. The literature review described development of product-service systems and business model creation, taking also in consideration the construction industry context. It covered, furthermore, consultant client relationship and its characteristics.
Based on this research it may be said that the process of business model creation in case company revolved around similar issues as it does in the current literature, such as market segmentation and customer analysis. On the other hand, the process in the case company had not quite reached the business model described in the literature when data collection for this thesis ended. It remained more on business planning level. Additionally, research supported the views in which there is place for competitor element in business model framework. This study also supports earlier views; traditionally product oriented engineering workshops are still, according to this study, clearly more product than service oriented. There are clear differences in how these companies see overall service and how they view services in their companies, but in general workshops seemed to be rather close to each other at the assembly or system integrator stage. Considering researcher’s role in project several similar challenges and advantages in cooperation have been recognized as in the current literature. Information flow and mutual trust are observed to be extremely important, and careful consideration on how to use an external researcher is deemed valuable.