Service-oriented business models: Service as value logic

This post is part of a series that explores service-oriented business models based on different perspectives on service.

Successful firms use business model innovation to rethink the way they do business and transform industries. However, current research on business model innovation is lacking theoretical underpinnings and is in need of new insights. The objective of this paper is to advance our understanding of both the business model concept and business model innovation based on service logic as foundation for customer value and value creation.

We present and discuss a rationale for business models based on ‘service logic’ with service as a value-supporting process and compared it with a business model based on ‘goods logic’ with goods as value-supporting resources. The implications for each of the business model dimensions: customer, value proposition, organizational architecture and revenue model, are described and discussed in detail.

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