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Business Model InnovationThe Organizational Dimension$
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Nicolai J Foss and Tina Saebi

Print publication date: 2015

Print ISBN-13: 9780198701873

Published to Oxford Scholarship Online: April 2015

DOI: 10.1093/acprof:oso/9780198701873.001.0001

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Service-driven Business Model Innovation

Service-driven Business Model Innovation

Organizing the Shift from a Product-based to a Service-centric Business Model

Chapter:
(p.191) 10 Service-driven Business Model Innovation
Source:
Business Model Innovation
Author(s):

Daniel Kindström

Christian Kowalkowski

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780198701873.003.0010

This chapter examines business model innovation driven by increased service focus. The chapter discusses the external drivers and organizational implications of shifting toward service-based business models. Driven both by competition and by new customer demands, many firms find themselves moving from their traditional business models based on, primarily, product sales toward business models based on services. As business success in this setting depends as much on such organizational rearrangements (including business model redesign) as it does on new service development, examining the organizational implications of this shift becomes crucial. Hence, the chapter discusses how firms can approach and understand this change to their business models, and also how their organization can become more service-oriented in order to take advantage of the emergent opportunities inherent in this shift.

Keywords:   business model, business model innovation, servitization, service-led growth, organization design, capabilities

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