Servitization of Industry: New Evidence

2021 ◽  
Vol 65 (8) ◽  
pp. 22-30
Author(s):  
V. Kondrat’ev ◽  
G. Kedrova ◽  
V. Popov
Keyword(s):  
Economic Policy ◽  
Business Models ◽  
Manufacturing Firms ◽  
Policy Implications ◽  
New Economic Policy ◽  
Firm Level ◽  
Policy Regime ◽  
Goods And Services ◽  
New Business ◽  
Use Of Services

A significant increase in the use of services is observed for some industries in GVCs (Global Value Chains). The paper has shed light on important dimension of the servitization which is the sale and export of services by manufacturing firms, often bundled together with goods. Firm-level data confirm that many firms are involved both in the production of goods and services and that there are complementarities between these activities. Not only manufacturing firms are involved in the distribution, transport and logistics services needed for their international operations in GVCs but also, they provide installation, maintenance, repair services as well as a variety of other business support and complementary services that increase value for their customers. The servitization has important policy implications, particularly when taking into account the fact that trade in services is generally more restricted than trade in goods. As the lines between goods and services are blurred, economic policy today might be more challenging than in the past, particularly for companies moving to new business models that imply more interactions with customers and a more intensive use of digital technologies. Services themselves are split into different modes of supply for which there are different levels of economic policy. A closer look at the mechanisms of value creation in the case of services suggests that there are still the needs of new economic policy addressed at business models described as value networks or value shops. As technologies become more disruptive and more companies move to ‘servicified’ GVCs, the need for a more consistent international economic policy regime, particularly at the multilateral level, will become more urgent.

Web 2.0 and its Implications on Globally Competitive Business Model

2014 ◽  
pp. 86-101
Author(s):  
Sudhanshu Joshi
Keyword(s):  
Social Media ◽  
Web 2.0 ◽  
Business Model ◽  
Success Factors ◽  
Business Models ◽  
Strategy Formulation ◽  
Firm Level ◽  
Critical Success ◽  
New Business ◽  
Internal Operations

Considering the impact of using social media, both internal and external implications for company operations are required to be explored. The chapter explores how social media is used to enable innovation practices in company internal operations as well as external stakeholders. In addition, the objective of the study is to evaluate the need and scope of Web 2.0 behind the restructuring of the business model, with major emphasis on implementing a user-centric business model. The research questions include: (a) What are the Critical Success Factors (CSF) responsible for attracting and engaging users in Web 2.0-oriented business processes and practices?; (b) Identifying the scope of effective Web 2.0-based strategies to overcome internal resistance at operational as well firm level during deployment of new business model. The chapter also discusses the influence of Web 2.0 concepts in the Web-strategy formulation for organizations with differing requirements, characteristics, and objectives. Considering four types of Web-based business models (Wirtz, 2010), namely (a) content-oriented business model, (b) commerce-oriented business model, (c) context-oriented business model, and (d) connection-oriented business model. The chapter defines the implementation of Web 2.0-based technological strategies in evolving the business model of the firm.

Government policy implications of intellectual capital: an Australian manufacturing case study

2015 ◽  
Vol 16 (2) ◽  
pp. 364-389 ◽  
Author(s):  
Göran Roos ◽  
Allan O'Connor
Keyword(s):  
Policy Implementation ◽  
Business Model ◽  
Intellectual Capital ◽  
Business Models ◽  
Manufacturing Firms ◽  
Policy Implications ◽  
Potential Contribution ◽  
Manufacturing Firm ◽  
Content Type ◽  
Resource Deployment

Purpose – The purpose of this paper is to report on an industry policy implementation case involving around 30 manufacturing firms, where the intellectual capital (IC) lens, and especially the intellectual capital navigator (ICN) approach, was found to be very useful for evaluating alternative servitisation strategies. Servitisation is a form of business model innovation and as such involves restructuring the firm’s resource deployment system including its IC resources. Design/methodology/approach – The ICN was one of several methods and themes used by a sample of manufacturing firms during a 12 month period. Data capture were through video filming, observation, and formal interviewing during and after the interventions. Findings – The ICN is considered to be the third most valuable theme in a strategic and operational servitisation programme for manufacturing firms, primarily in the domain of effectiveness evaluation of alternative resource deployment strategies and as such should be one of the key dimensions in a business model template for manufacturing firms that aim to servitize. This research also illustrates the usefulness of the intellectual capital lens in the policy implementation process. Research limitations/implications – The findings of this study is limited to the servitization process of SME manufacturing firms in an Anglo-Saxon operating environment which very rapidly have gone from low to high cost. Originality/value – The development of service-oriented business models for manufacturing firms suffers due to traditional business model frameworks not having a high relevance for servitising manufacturing firm. Consequently it is important to understand the potential contribution that the IC lens through the ICN can make in the servitisation process.

scholarly journals Innovation & Its Diffusion in Business: Concept, Stages & Procedural Practices

sjesr ◽  
2020 ◽  
Vol 3 (4) ◽  
pp. 174-186
Author(s):  
Dr. Muhammad Tariq Khan ◽  
Dr. Tariq Iqbal Khan ◽  
Dr. Shiraz Khan
Keyword(s):  
Business Models ◽  
Business Leaders ◽  
Communication Process ◽  
Goods And Services ◽  
Application Method ◽  
Or Practice ◽  
New Business ◽  
Business Setting ◽  
Technical Products ◽  
New Business Models

Innovation is a new idea, object, or practice like scientific knowledge, technical products, application method, and tools which are viewed as new facilitators of problem-solving, on-the-spot acceptance, procedure, community, structure, and technology. The number of research in the field of economics have determined that innovation is about creation as well as the adoption of new business models, new product and services. Technological innovations are especially important because they drive the progress of societies. In a competitive business setting, enterprise and entrepreneur or business leaders should continuously pursue new openings/opportunities and make the needed arrangements for converting them into new products, goods, and services. But a new idea scientific method, product, practice, application method, and the tool does not turn out to be an innovation until adopted broadly and integrated into diffusion "a special type of communication process comprising some stages by which an innovation is communicated through certain channels over time among the members of a social system". This paper attempts to clarify in depth the concept of creativity and its distribution to consumers or adopters.

Cultural Economies of Locative Media

2019 ◽  
Author(s):  
Rowan Wilken
Keyword(s):  
Business Models ◽  
Location Based Services ◽  
Policy Implications ◽  
Location Awareness ◽  
Cultural Economic ◽  
Locative Media ◽  
Location Data ◽  
New Business ◽  
Cultural Economies ◽  
Social Uses

Cultural Economies of Locative Media examines the manifold ways that location, location-awareness, and location data have all become familiar yet increasingly significant parts of our mobile-mediated experiences of everyday life. The book explores the complex of interrelationships that mutually define the new business models and economic factors that emerge around and structure locative media services, their diverse social uses and cultures of consumption, and their policy implications and impacts. It offers a detailed, in-depth account of how location-based services, such as GPS-enabled mobile smartphones and associated applications, are socially, culturally, economically, and politically produced and shaped, as much as technically designed and manufactured. The result is a rich, composite portrait of locative media in all its cultural economic complexity.

scholarly journals Design of Product–Service Systems: Toward An Updated Discourse

Systems ◽  
2020 ◽  
Vol 8 (4) ◽  
pp. 45
Author(s):  
Johan Lugnet ◽  
Åsa Ericson ◽  
Tobias Larsson
Keyword(s):  
Business Models ◽  
Service Systems ◽  
Systems Science ◽  
Future Research ◽  
Cognitive Changes ◽  
Goods And Services ◽  
Product Service ◽  
New Business ◽  
Product Service Systems

The engineering rationale, composed of established logic for the design and development of products, has been confronted by a shift to a circular economy. Digitalization (e.g., Industry 4.0) enables transformation, but it also increases relational complexities in scope and number. In Product–Service Systems (PSSs), the combination of manufactured goods and services should be delivered in new business models based on value-adding digital assistance. From a systems science view, such combinations cannot be managed by the same approach as if they were one uniform system; rather, it is an interdependent mix of technical, social, and digital designs. This paper initializes an updated conceptual discourse on PSSs and provides a reflection on the expected challenges in the transformation from linear to circular models. For example, the role of systems thinking to guide early design stages is discussed and the importance of processes for creating shared visions at different systems levels is suggested to be addressed in future research. The intention is to formulate thoughts about radical cognitive changes in order to realize the PSS paradigm.

scholarly journals Illumination in times of Uncertainty: Fifty Shades of Innovation for Societal Impact

2015 ◽  
Vol 3 (1) ◽  
pp. 1-4 ◽  
Author(s):  
João José Pinto Ferreira ◽  
Anne-Laure Mention ◽  
Marko Torkkeli
Keyword(s):  
Business Models ◽  
Leading Edge ◽  
Unified Theory ◽  
Academic Literature ◽  
Goods And Services ◽  
Marketing Social ◽  
New Business ◽  
Organisational Process ◽  
Social Environmental ◽  
New Business Models

Innovate or die. This observation is nothing new; yet it is probably more true and topical than ever. Over the last decades, innovation has expanded in an unprecedented manner and is now part of most firms’ strategies, if not the nexus of their strategies.  Originally, mainly centred around the introduction of manufactured novelties, innovation is now perceived and depicted by as many adjectives, categories and attributes as one can think of: service, organisational, process,  marketing, social, environmental, strategic, business model, and so on. This extension of the nature, types and forms of innovation goes hand in hand with the development of the academic literature focusing not only on the tangibility nature of novelties, but also on the intangibility character of some, or even most, of those. Moreover, and, as the analysis of leading-edge companies shows, innovation is nowadays never restricted to a single specific form. Innovation now embraces bundles of products and services, which are subject to new business models, distributed through new channels increasingly benefitting from an accrued interaction with customers, enrolling them in the development and marketing processes. The boundaries between goods and services innovations have blurred over time, leading to an abundant literature stemming from the convergence or synthesis streams, aiming at building a unified theory for innovation, and highlighting the convergence between the typical features of product innovation (such as the tangibility and the standardization) and those of service innovation (customer-centric, less structured, intangible), as argued by e.g. Evangelista (2006) and Gallouj and Savona (2009). (...)

New Businesses and New Business Models

2013 ◽  
Author(s):  
Michael A. Cusumano ◽  
Andreas Goeldi
Keyword(s):  
Business Models ◽  
Online Advertising ◽  
Scale Economies ◽  
Digital Age ◽  
The Internet ◽  
Firm Level ◽  
Wide Range ◽  
The World ◽  
New Business ◽  
New Business Models

This chapter shows one of the most significant issues facing old and new businesses in the digital age – the development of new business models – and determines a wide range of business models enabled by new platforms for computing and communications over the Internet. It reviews the general impact of the Internet on firm-level strategy (how to compete in particular markets) and business models (how to generate revenues and profits), and then describes how the Internet has caused entrepreneurship and innovation. Entrepreneurs around the world believed that the Internet would develop magical scale economies as millions of users flocked to their websites. Online advertising is a ‘winner-takes-most’ market. The Internet has brought an almost unlimited ability to search the globe for the best products and services at the lowest prices.

Web 2.0 and Its Implications on Globally Competitive Business Model

2016 ◽  
pp. 1638-1654
Author(s):  
Sudhanshu Joshi
Keyword(s):  
Social Media ◽  
Web 2.0 ◽  
Business Model ◽  
Success Factors ◽  
Business Models ◽  
Strategy Formulation ◽  
Firm Level ◽  
Critical Success ◽  
New Business ◽  
Internal Operations

Considering the impact of using social media, both internal and external implications for company operations are required to be explored. The chapter explores how social media is used to enable innovation practices in company internal operations as well as external stakeholders. In addition, the objective of the study is to evaluate the need and scope of Web 2.0 behind the restructuring of the business model, with major emphasis on implementing a user-centric business model. The research questions include: (a) What are the Critical Success Factors (CSF) responsible for attracting and engaging users in Web 2.0-oriented business processes and practices?; (b) Identifying the scope of effective Web 2.0-based strategies to overcome internal resistance at operational as well firm level during deployment of new business model. The chapter also discusses the influence of Web 2.0 concepts in the Web-strategy formulation for organizations with differing requirements, characteristics, and objectives. Considering four types of Web-based business models (Wirtz, 2010), namely (a) content-oriented business model, (b) commerce-oriented business model, (c) context-oriented business model, and (d) connection-oriented business model. The chapter defines the implementation of Web 2.0-based technological strategies in evolving the business model of the firm.

PRINCIPLES FOR ASSESSING THE INNOVATIVE POTENTIAL OF THE RUSSIAN REGIONS

2021 ◽  
Vol 1 (64) ◽  
pp. 102-109
Author(s):  
Marianna V. Miroslavskaya ◽  
Keyword(s):  
Business Models ◽  
Business Processes ◽  
Import Substitution ◽  
Economic Security ◽  
Goods And Services ◽  
Positive Effects ◽  
Regional Markets ◽  
Communication Time ◽  
New Business ◽  
Substitution Policy

Currently, import substitution is considered as one of the priority directions of the country’s economic development, the relevance of which arose in response to the imposed sanctions of Western countries, which implies a decrease in the share of imports of products, services, technologies, the development of an industrial base in the most important industries and, ultimately, an increase in the level of economic security of the country. Despite the fact that the sanctions impose serious restrictions on the activities of leading Russian companies, in the current conditions, coupled with the ongoing coronavirus epidemic, they are a serious incentive for the implementation of the import substitution policy. Rosstat data show that the import substitution policy has led to positive consequences for the agriculture of the regions. However, the effectiveness of the state policy in the field of digitalization and the introduction of innovative artificial intelligence technologies are of particular importance for the implementation of the import substitution policy. The following positive effects from the digitalization process at the regional level, influencing the implementation of the import substitution policy, are highlighted: improving the quality of life of the region’s population; growth of labor productivity by speeding up all business processes and reducing communication time in the region; the emergence of new forms of business and new business models to increase profitability and competitiveness; increasing the transparency of business transactions and ensuring the possibility of their monitoring; ensuring the availability and promotion of goods and services to regional markets.

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