Business Models in Servitization
This chapter sheds light on the different business models of manufacturing companies that have servitized their business operations. This chapter presents four distinctive yet simultaneously pursued business models for servitized manufacturers: (1) the product business model, (2) the service-agreement business model (3) the process-oriented business model, and (4) the performance-oriented business model. Depending on the direction taken, dedicated customer needs targeted, value propositions adopted, and services and solutions provided, a servitized manufacturer should decide which business model(s) the firm will adopt with different customers.
- Bertini, M., & Tavassoni, N. (2015). Case study: Can one business unit have 2 revenue models? Harvard Business Review, 93(3), 121–123.Google Scholar
- Johnson, M. W., Christensen, C. M., & Kagermann, H. (2008). Reinventing your business model. Harvard Business Review, 86(12), 50–59.Google Scholar
- Kowalkowski, C., & Ulaga, W. (2017). Service strategy in action: A practical guide for growing your B2B service and solution business. Scottsdale, AZ: Service Strategy Press.Google Scholar
- Osterwalder, A., & Pigneur, Y. (2010). Business model generation: A handbook for visionaries, game changers, and challengers. Hoboken, NJ: Wiley.Google Scholar