The ‘business model’ and the ‘service concept’

For a while now I have been studying service management and marketing literature (for example, Grönroos). This made me think more and more about the relation between the service concept (and customer benefit concept) and the business model. However, because literature is often as vague about the service concept as it is about the business model, it is hard to come to a clear view.

My initial thoughts are that the business model includes the service concept (and customer benefit concept) via the service perspective. The business model extents the service concept by linking it explicitly to related choices with respect to the organization, financial, and technological aspects.

Linking the service concept to the organization perspective of the business model is particularly relevant when the service requires the cooperation of other firms, that is a business network is required. Linking the service concept to the financial perspective of the business model is particularly relevant when (new) revenue models are needed. Linking the service concept to the technological perspective of the business model is particularly relevant when technological innovation is the driver or enabler of new services.