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ICT enabled business model innovation to support servitization in global industrial companies

Publication Type:

Conference/Workshop Paper

Venue:

22nd Nordic Academy of Management Conference


Abstract

Servitization in industrial companies to escape the “commodity trap” can be enhanced by business model innovation (BMI) in order to systemically focus on the firm ́s value proposition, its organization of (co-) production as well as capturing of value in revenue mechanisms (Amit & Zott, 2012; Chesborough, 2010). ICT oriented developments like cloud, big data, internet of thing, smart installed base here offer potentials to take advantage and develop the information base of products, processes, utilization and customer behavior and needs into new and more complex offerings (LaValle et al., 2011). The purpose of the paper is to analyze the enablers and barriers for innovation in ICT enabled business models to ease and accelerate the journey towards service business development in global industrial companies. The research is done through a literature review on research and BMI cases, and a process oriented case study of emerging developments in a global industrial company. The research result is identification and synthesis of enabling factors and barriers in servitization through ICT supported BMI. Enabling factors are related to information and information processing potentials and organizational capabilities to increase service content of offerings, while barriers are e.g. internal integration and competence as well as customer trust, information confidentiality as well as willingness to engage in more close, service oriented and co- creative business relationships. The result will be input to ongoing action research collaboration with industrial companies in terms of research agenda as well as practical insights for BMI efforts.

Bibtex

@inproceedings{Nygren3135,
author = {Christer Nygren and Erik Lindhult},
title = {ICT enabled business model innovation to support servitization in global industrial companies},
isbn = {ISSN 2298-3112},
month = {August},
year = {2013},
booktitle = {22nd Nordic Academy of Management Conference},
url = {http://www.ipr.mdh.se/publications/3135-}
}