Blending Digitalization and Services in Business Model Innovation

Gerard Berendsen (Twente Quality Centre, The Netherlands)
and Ronald C Beckett (
Swinburne University of Technology, Australia)

CINet 2017

This paper presents an exploratory study of one aspect of next generation business
models - the influence of digitalization and its societal impact. Five case studies
covered a number of scenarios: digital technology embedded in physical product
and business processes, the evolution digital products and services, and the
influence of e-commerce, with a business model lens being used to compare them.
In all cases, pre-existing application knowledge and capabilities provided a
foundation for new initiatives. Whilst some related literature highlights matters of
structure and process, we noted the importance of having an innovation champion
plus a viable business model to establish sustainable operations. Product and
service offerings were interwoven with the delivery of some form of social benefit
in presenting a value proposition. Supplier-customer value co-creation was a
common theme, which also underpins emergent theoretical service-dominant logic
concepts. It is suggested this services viewpoint may provide an alternative
business model perspective.