THE ORGANIZATIONAL IMPACTS OF A PRODUCT-SERVICE BASED BUSINESS MODEL INNOVATION PROCESS IN AN INCUMBENT MANUFACTURING FIRM

Author: 
Williander, M., Linder, M., Nyström, T.
Type of publication: 
Conference item
Abstract: 

ABSTRACT

The circular economy, it is hoped, is one possible way to radically improve

environmental sustainability. One suggested path towards a more environmentally

sustainable industry that is part of the circular economy concept is for firms to move

from product offerings to product-service offerings. Such offerings require

substantially different business models, such that business model innovation is

needed. In such situations of innovation and change, core capabilities can become

core rigidities in incumbent firms.

Lean startup methodologies are claimed to rapidly and cost effectively develop

validated business models for startup companies. This set of methods is designed for

startup companies but may be useful also for incumbent firms. A collaborative and

interventionist research project together with a company with a long business history

tested whether one of these methods, Customer Development, could be of use, the

challenges of using it, and if and how these challenges could be addressed. At this

firm, it was found that the Customer Development process can be very useful and

potentially work as intended, but requires a conscious setup of the project team. It

seems reasonable to expect that core competencies for the business model in current

use would become core rigidities that would have jeopardized both the Customer

Development process and its business model outcome without external help to reflect

upon important but organizationally embedded presumptions.

Year: 
2015
Publication: 
PDF icon eiasm_2015_upload_2.pdf
Official URL: 
http://www.eiasm.org/frontoffice/event_announcement.asp?event_id=1079
Location: 
Copenhagen Business School Copenhagen
Denmark
DK
Published in: 
22ND INNOVATION & PRODUCT DEVELOPMENT MANAGEMENT CONFERENCE