The transition towards service-oriented business models

New trends for capital goods manufacturers push towards selling the products usage or performance rather than the product itself. This evolution from traditional business models, based on the product sales, to new service-oriented business models (BMs), has received increasingly attention both in the academic and managerial community. Despite this, a limited application of service offerings has been observed in the capital goods sector. This article reports the results from a survey carried out during the T-REX project, funded by the European Union under the Seventh Framework Programme, and has two objectives: (a) to empirically investigate the way BMs of capital goods companies are configured and (b) to analyse the degree of service orientation of such BMs. Finally, the main challenges for practitioners emerged from the survey are discussed in this article, highlighting directions for future research.

[1]  Valérie Mathieu.  Product services: from a service supporting the product to a service supporting the client , 2001 .

[2]  T. Meiren,et al.  Service engineering—methodical development of new service products , 2003 .

[3]  A. Tukker.  Eight types of product–service system: eight ways to sustainability? Experiences from SusProNet , 2004 .

[4]  E. Fleisch,et al.  Overcoming the Service Paradox in Manufacturing Companies , 2005 .

[5]  Sergio Cavalieri,et al.  Exploring the relationship between after-sales service strategies and design for X methodologies , 2007 .

[6]  A. Neely.  Exploring the financial consequences of the servitization of manufacturing , 2008 .

[7]  G. Lay,et al.  Service-based business concepts: A typology for business-to-business markets , 2009 .

[8]  Tim Baines,et al.  The servitization of manufacturing: A review of literature and reflection on future challenges , 2009 .

[9]  Daniel Kindström,et al.  Development of industrial service offerings: a process framework , 2009 .

[10]  Nicola Saccani,et al.  Managing the after-sales logistic network–a simulation study , 2009 .

[11]  Heiko Gebauer,et al.  ICT as a catalyst for service business orientation , 2013 .

[12]  Daniel Kindström.  Towards a service-based business model – Key aspects for future competitive advantage , 2010 .

[13]  K. Storbacka.  A solution business model: Capabilities and management practices for integrated solutions , 2011 .

[14]  W. Reinartz,et al.  Hybrid Offerings: How Manufacturing Firms Combine Goods and Services Successfully , 2011 .

[15]  Henrique Rozenfeld,et al.  Employing the business model concept to support the adoption of product–service systems (PSS) , 2013 .

[16]  Aitor Arnaiz,et al.  Continuous Improvement on Information and On-line Maintenance Technologies for Increased Cost-effectiveness☆ , 2013 .

[17]  Heiko Gebauer,et al.  Characterizing service networks for moving from products to solutions , 2013 .

[18]  T. Baines,et al.  Servitization of the manufacturing firm: exploring the operations practices and technologies that deliver advanced services , 2013 .

[19]  Giuditta Pezzotta,et al.  Service development in product-service systems: a maturity model , 2013 .

[20]  Giacomo Copani,et al.  Machine Tool Industry: Beyond Tradition? , 2014 .

[21]  Filippo Visintin,et al.  Photocopier Industry: At the Forefront of Servitization , 2014 .

[22]  Scott Duke Kominers,et al.  The real cost of "patent trolls" , 2014 .

[23]  Roberto Pinto,et al.  A classification model for product-service offerings , 2014 .

[24]  M. Porter,et al.  How Smart, Connected Products Are Transforming Competition , 2014 .

[25]  Walter Brenner,et al.  Developing a maturity model for service systems in heavy equipment manufacturing enterprises , 2014, Inf. Manag..

[26]  Daniel Kindström,et al.  Service Innovation in Product-Centric Firms: A Multidimensional Business Model Perspective , 2014 .

[27]  Federico Adrodegari,et al.  Engineer-to-order (ETO) production planning and control: an empirical framework for machinery-building companies , 2015 .

[28]  Nicola Saccani,et al.  Internal and external alignment in the servitization journey – overcoming the challenges , 2015 .

[29]  V. Parida,et al.  Product–Service Systems (PSS) business models and tactics – a systematic literature review , 2015 .

[30]  Mario Rapaccini,et al.  Devising hybrid solutions: an exploratory framework , 2015 .

[31]  Daniel Kindström,et al.  Adding services to product-based portfolios , 2015 .

[32]  Christian Kowalkowski,et al.  Servitization and Deservitization: Overview, Concepts, and Definitions , 2016 .

[33]  Tobias Bachmeier,et al.  Business Model Generation A Handbook For Visionaries Game Changers And Challengers , 2016 .

[34]  N. Saccani,et al.  Business models for the service transformation of industrial firms , 2017 .

[35]  Federico Adrodegari,et al.  PSS business model conceptualization and application* , 2017 .

[36]  G. Parry,et al.  Servitization and advanced business services as levers for competitiveness , 2017 .