WASET
	%0 Journal Article
	%A Taru Hakanen and  Mervi Murtonen
	%D 2015
	%J International Journal of Industrial and Systems Engineering
	%B World Academy of Science, Engineering and Technology
	%I Open Science Index 104, 2015
	%T Service Business Model Canvas: A Boundary Object Operating as a Business Development Tool
	%U https://publications.waset.org/pdf/10002419
	%V 104
	%X This study aims to increase understanding of the
transition of business models in servitization. The significance of
service in all business has increased dramatically during the past
decades. Service-dominant logic (SDL) describes this change in the
economy and questions the goods-dominant logic on which business
has primarily been based in the past. A business model canvas is one
of the most cited and used tools in defining end developing business
models. The starting point of this paper lies in the notion that the
traditional business model canvas is inherently goods-oriented and
best suits for product-based business. However, the basic differences
between goods and services necessitate changes in business model
representations when proceeding in servitization. Therefore, new
knowledge is needed on how the conception of business model and
the business model canvas as its representation should be altered in
servitized firms in order to better serve business developers and interfirm
co-creation. That is to say, compared to products, services are
intangible and they are co-produced between the supplier and the
customer. Value is always co-created in interaction between a
supplier and a customer, and customer experience primarily depends
on how well the interaction succeeds between the actors. The role of
service experience is even stronger in service business compared to
product business, as services are co-produced with the customer. This paper provides business model developers with a service
business model canvas, which takes into account the intangible,
interactive, and relational nature of service. The study employs a
design science approach that contributes to theory development via
design artifacts. This study utilizes qualitative data gathered in
workshops with ten companies from various industries. In particular,
key differences between Goods-dominant logic (GDL) and SDLbased
business models are identified when an industrial firm
proceeds in servitization. As the result of the study, an updated version of the business
model canvas is provided based on service-dominant logic. The
service business model canvas ensures a stronger customer focus and
includes aspects salient for services, such as interaction between
companies, service co-production, and customer experience. It can be
used for the analysis and development of a current service business
model of a company or for designing a new business model. It
facilitates customer-focused new service design and service
development. It aids in the identification of development needs, and
facilitates the creation of a common view of the business model.
Therefore, the service business model canvas can be regarded as a
boundary object, which facilitates the creation of a common
understanding of the business model between several actors involved.
The study contributes to the business model and service business
development disciplines by providing a managerial tool for
practitioners in service development. It also provides research insight
into how servitization challenges companies’ business models.
	%P 2687 - 2692