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Servitization Anastacia Simonchik

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3rd International Business Servitization Conference
13-14 November 2014
Bilbao

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Servitization Anastacia Simonchik

  1. 1. Anastacia Simonchik, Maya Hoveskog, Niklas Göthberg, Fawzi Halila, & Mike Danilovic Business models and customer value of services The case of Swedish wind energy industry 3rd International Conference on Business Servitization
  2. 2. Wind energy industry context ❖Inefficiency of O&M services and customer dissatisfaction ❖Need for business model innovation for servitization to address different customer groups in after sales ❖Basic industry energy companies ❖Energy companies ❖Investors ❖Project organisations ❖Customer value is unclear
  3. 3. Challenges ❖Customer value identification ❖It is unclear what is valuable to industrial customers, why and how to identify it; there is a call for more research on customer value and methods to identify it in industrial context (e.g. Keränen & Jalkala, 2013)
  4. 4. Purpose ❖By adopting industrial customer’s perspective, map customer perceived value of services and explore business model influence on it
  5. 5. Analytical framework Business model elements Customer perceived value Determinants of customer value
  6. 6. Research design Stage Content Outcome 1. Customer grouping 1.Exploration - workshop with turbine manufacturer (Gamesa Sweden AB) 2.Development - wind turbine owners secondary data analysi, own customer grouping and preliminary case selection 3.Finalizing - verification by industry consultant (Ecopower Academy Northern Europe AB) Verified customer grouping (basic industry energy companies, energy companies, investors, project organisations) and final case selection (4 customers of wind turbines and O&M services representing each group) 2. Data collection & analysis 1. 4 interviews semi structured interviews + collection of secondary data 2. Case summaries according to analytical model 3. Cross case comparison 1. Industrial solution elements mapping 2. By case: business model elements influence on customer perceived value content 3. Determinants of customer perceived value
  7. 7. Example of mapped customer value & BM influence: basic industry Elements of industrial solution Actual value attributes Desired value attributes Business model elements that influenced 1. Service contract (operation and technical maintenance activities) Functionality, alternative solutions Flexibility, reliability Competence (O&M management in other industries) 2. Software (SCADA system) Functionality n/a Involvement in value creation (O&M activities) 3. Reports (summarised data on wind turbine performance & service activities) Quality, alternative solutions n/a Involvement in value creation (O&M activities) 4. Training (technical and software education) Technical competence n/a Intentions for development of involvement in value creation 5. Relationship with service provider Collaborative exchange, co- creation, resulting value: more efficient solution More collaborative exchange: better communication, cooperation and equality; reapplying competences Competence
  8. 8. Findings: Identified Determinants Business model elements that determinants derived from Determinants Key resources O&M competence Characteristics of fleet under operation Key activities Involvement in value creation (O&M activities) Business model Intentions for development of value creation involvement
  9. 9. Discussion & Conclusion ❖Identified determinants can serve as the basis for BMI for servitization in wind energy industry in Sweden: •customer grouping for wind turbine after sales services •development of value proposition to fit customer specific needs/ determinants of each specific customer group ❖Similar factors have been identified in studies from supplier’s perspective
  10. 10. Questions & comments Thank you!

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