Business Models Innovation Patterns in Servitization

Abstract

New business models expand the current innovation portfolio and support advancements in both product and process innovation. When such business model innovations incorporate service innovation within manufacturing contexts, they are commonly recognized as servitization business model changes. This research endeavors to elucidate the principal business model patterns linked with servitization. By scrutinizing nearly sixty business model patterns delineated in the business model navigator framework, this study delineates the primary business models embraced and the prevalent interconnections among them within servitization contexts. The novelty of this investigation lies in enriching the existing categorization of business models associated with servitization, broadening the conventional servitization business model continuum to encompass the product business model, service-agreement business model, process-oriented business model, and performance-oriented business model. Contributions manifest in elucidating the complementary nature of business models, identifying comparative patterns across different sectors that elucidate variations in servitization performance, exploring the transferability of these models among sectors, and offering tailored business model recommendations aligned with the firm's objectives.