Project suppliers are taking increasing responsibility for their customers' businesses by servicing and operating their installed base of equipment. Simultaneously, the locus in value creation in the project suppliers' deliveries and business models has changed from short-term project deliveries to also include the operation of systems. We analyze five solutions delivered by a power plant supplier firm. The term 'solution' here refers to an offering which includes a project component and an after-delivery service component. We assess the distinctive features in the business models of the solution deliveries. This paper contributes to the existing knowledge by suggesting use of solution-specific business models with six key business model elements and by developing a typology of five solution-specific business models. The typology can also be used for assessing the performance of individual solutions. Our suggestion of a solution-specific business model is especially novel in the research of integrated solutions and business models: although existing literature argues that on a general level a firm can have several business models, prior research has not suggested the use of project specific or solution specific business models. Therefore, our finding of solution specificity of business models contributes significantly to the existing knowledge.
This paper analyses drivers, barriers and business logic used to include services in the business model of a project-based firm. The empirical study includes six project supplier firms from different industries. Differences in the complexity of project delivery and variations in the project suppliers' degree of maturity in delivering services, serve as drivers and barriers for enlarging delivery scope or enhancing profitability with various types of services. The complexity of the project delivery and the firm's degree of maturity in delivering services, serve as two important determinants for distinctive business logic. This paper suggests a typology of four business logic in order for project supplier firms to include services in their business models. The four distinctive types of logic are product driven, innovation and technology driven, service driven, and business driven logic.
Services are receiving an increasing amount of attention in project-based firms. This has led project suppliers to employ new business models; the project supplier can offer services as an additional component of the project or take full responsibility for the operation and maintenance of the facility throughout its life-cycle. In this paper, we build on the idea that within the context of project-based firms, assessing business models requires a solution level of analysis which implies services as integral parts of project offering. We analyze business models in five solutions that were delivered by a power plant supplier firm. The evidence clearly demonstrates that there are variations in business models at the solution level. The paper further contributes to existing research by empirically identifying factors that influence the choice of business model for a particular solution. Finally, we formulate propositions on how these identified factors influence the choice of a business model for an individual solution.
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