Service Dominant Strategy Canvas published in journal of Service Business
Title: Designing a tool for service-dominant strategies using action design research
Both academic research and industrial practice recognize difficulties in translating the principles of service-dominant (S-D) business logic into actionable insights for practitioners, particularly when considering S-D logic at the strategic level. To address this problem, this paper focuses on the conceptualization, formulation, and communication of an S-D business strategy. From the theoretical standpoint, we conceptualize the elements of an S-D strategy by filtering the scattered literature about S-D strategy and business models through the lenses of traditional views of business strategy. From the practical standpoint, we develop a tool embedding our conceptual development to support practitioners in the formulation and communication of S-D strategy. While traditional strategy tools take a value chain perspective, our tool helps to position the focal organization at the center of a complex ecosystem of partners who are co-creating value. Following the principles of action design research, the tool is developed and evaluated in close collaboration with practice in a case study in the financial services industry. Consequently, this paper contributes both to the conceptual and the practical operationalization of S-D logic at the strategic level.
Service-dominant business Action design research Management tool Strategy
The Service Dominant Ecosystem was presented in Dresden, Germany at the 14th IFIP Working Conference on Virtual Enterprises (PRO-VE) 2013
E. Lüftenegger, M.Comuzzi, and P.Grefen; The Service Dominant Ecosystem: Mapping a Service Dominant Strategy to a Product-Service Ecosystem;Proceedings 14th IFIP Working Conference on Virtual Enterprises (PRO-VE), Dresden, Germany; Springer 2013.
The video of the presentation is available as follows:
Why companies can not do radical innovations? Business managers get trapped by their current way of thinking. This is known as the dominant logic trap, where the wisdom of a company does not let new business concept get through the organization. As show in the Figure below, We can visualize this issue by using a funnel. The filter inside the funner represent the current way of thinking. Moreover, this filter is the collective wisdom of managers that stop the adoption of innovative ideas outside the current way of doing business. Furthermore, the arrow outside the funnel represents the service dominant business concept that can not get into the company’s mindset.
Reference: Lüftenegger, E.R., Grefen, P.W.P.J. & Weisleder, C.A. (2012). The service dominant strategy canvas : defining and visualizing a service dominant strategy through the traditional strategic lens.BETA publicatie : working papers No. 383, Eindhoven: Technische Universiteit Eindhoven, 50 pp. (PDF)
Lüftenegger, E.R., Grefen, P.W.P.J. & Weisleder, C.A. (2012). The service dominant strategy canvas : defining and visualizing a service dominant strategy through the traditional strategic lens.BETA publicatie : working papers No. 383, Eindhoven: Technische Universiteit Eindhoven, 50 pp.
Abstract: Service orientation, customer focus and collaboration between firms are changing the way of doing business. Marketing scholars are the first academics to conceptualize these changes under a new mindset, known as the service dominant logic. We observe a direct relationship between the service dominant logic and cross-organizational information systems.
However, the service dominant logic is difficult to communicate and operationalize. Management constructs are needed to apply the service dominant logic to the busi- ness environment. Strategy is the first management construct that we need for the business development of the service dominant logic. Currently, there are few works on the service dominant logic at strategic level.
In this report, we present a structured definition of a service dominant strategy by taking these emerging works and confronting them with the traditional strategies taught at business schools. We make a projection of the identified strategic statements of the service dominant logic to organize them and make some conclusions. We contribute to the development of the service science at strategic level, by presenting a management tool that facilitates the design of service dominant strategies.
Companies that are in a predominant position in the marketplace, usually look at new entrants as non-dangerous. For instance, Steve Ballemer laughed about a new phone in the market called the iPhone because was too expensive. However, nowadays the iPhone is the best-selling smartphone displacing incumbents like Nokia. Sometimes, the dominant logic of a company do not let see other opportunities that are emerging. Moreover, they may seen as ridiculous by incumbent companies as we can see in the following video:
Title : The state of the art of innovation-driven business models in the financial services industry
Authors : E. Lüftenegger, S. Angelov, E. van der Linden and P. Grefen
BETA Working Paper Series WP 310, Eindhoven University of Technology, March 2010.
ISBN : 978-90-386-2226-2
Emerging innovation-driven business models are changing the financial services landscape. Most companies are using innovation to sustain their business models. However, new entrants into the financial services market innovate in a way that disrupts the industry. Typically, directions for innovation initiatives in financial services are absent.
In this report, we present a structured method to analyze innovation initiatives and their impact on the financial services in dustry. Our method is based on innovation and business model frameworks that let us analyze business models driven by different kinds of innovations.
We apply our method to emerging innovation-driven business models providing an overview of the financial services industry. Companies in financial services can use this report as an overview of the state of the art and as a guiding tool for their innovation initiatives. We contribute to the innovation and business models research fields, presenting a unified method to analyze business models driven by innovation in financial services.