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Solution business models: transformation along four continua
Department of Marketing, University of Auckland Business School, Auckland, New Zealand.
Department of Marketing, University of Auckland Business School, Auckland, New Zealand.
Department of Marketing, Hanken School of Economics, Helsinki, Finland; Graduate School of Management, University of Auckland Business School, Auckland, New Zeeland.
Department of Information and Service Economy, Aalto University School of Business, Aalto, Finland.
2013 (English)In: Industrial Marketing Management, ISSN 0019-8501, E-ISSN 1873-2062, Vol. 42, no 5, p. 705-716Article in journal (Refereed) Published
Abstract [en]

Using a business model perspective, we identify four continua that are of specific relevance for industrial firms transforming toward solution business models: customer embeddedness, offering integratedness, operational adaptiveness, and organizational networkedness. Using these continua, we explore the opportunities and challenges related to solution business model development in two different business logics that are of particular importance in an industrial context: 'installed-base' (IB) and 'input-to-process' (I2P). The paper draws on eight independent research projects, spanning an eleven-year period, involving a total of 52 multinational enterprises. The findings show that the nature and importance of the continua differ between the I2P and IB business logics. IB firms can almost naturally transition toward solutions, usually through increasing customer embeddedness and offering integratedness, and then by addressing issues around the other continua. For I2P firms, the changes needed are less transitional. Rather, they have to completely change their mental models and address the development needs on all continua simultaneously.

Place, publisher, year, edition, pages
Elsevier, 2013. Vol. 42, no 5, p. 705-716
Keywords [en]
Business model; Solution business; Transformation
National Category
Economics and Business
Identifiers
URN: urn:nbn:se:oru:diva-61546DOI: 10.1016/j.indmarman.2013.05.008ISI: 000325233500008Scopus ID: 2-s2.0-84884125551OAI: oai:DiVA.org:oru-61546DiVA, id: diva2:1149396
Available from: 2017-10-16 Created: 2017-10-16 Last updated: 2018-05-29Bibliographically approved

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Windahl, Charlotta

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