Service Innovations are an opportune strategy for companies to compete in the digital age and to transform their business models taking a service perspective on their value creation. Digital business models require unique value propositions that incorporate digital technologies. Companies are required to build new digital capabilities to design and implement digital strategies. The paper takes a visionary perspective and motivates to view value creation through a service lens to respond to current challenges of digital transformation. We apply Service Dominant Architecture (SDA) to translate requirements of business initiatives into sustainable new IT infrastructure capabilities.
IT is a major driver of business model innovation and servitization. Representations of business models are widely used tools for analyzing instances of these developments as well as for the ideation of novel services and service business models. However, current representations of business models fail to capture essential aspects of service, such as cocreation. In response to these shortcomings, the paper presents a representation for service business models. The utility and efficacy of this alternative business model representation is demonstrated with a case study of a proximity m-payment service in the German retail industry. We apply and compare the Business Model Canvas as well as the Service Business Model Canvas. Based on this application, we present an evaluation by an informed argument of the representation.
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