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Service business logic framework. Egon Lüftenegger , Information Systems Group, TU/e. Innovation initiative at De Lage Landen. This project was initiated by the former CEO of De Lage Landen (DLL) to trigger innovation and develop new business for the future. Innovation Lab TU/e. - PowerPoint PPT Presentation
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TU/e
Service business logic frameworkEgon Lüftenegger, Information Systems Group, TU/e
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De Lage Landen and TU/e: partners in knowledge
Innovation initiative at De Lage Landen
This project was initiated by the former CEO of De Lage Landen (DLL) to trigger innovation and develop new business for the future.
Innovation Lab TU/e
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De Lage Landen and TU/e: partners in knowledge
Project Challenges
Researching closely with the industry have unique settings and issues that need to be addressed.
Aligning the goals of industry and academia has been a major challenge.– Industry want a business development and – Academia wants a research contribution
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De Lage Landen and TU/e: partners in knowledge
How to approach this situation?
How to discover the research opportunities?
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De Lage Landen and TU/e: partners in knowledge
Action Research!Solve
practical problems while expanding
scientific knowledgeBaskerville, 2004, Management Information Systems Quarterly
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De Lage Landen and TU/e: partners in knowledge
Action research in Information Systems (IS)
Investigating IS with Action Research (Baskerville,1999) :
1. The researcher is actively involved, with expected benefit for both researcher and the organization
2. The knowledge obtained can be immediately applied, there is not sense of detached observer, but an active participant whishing to utilize any new knowledge based on and explicit, clear conceptual framework
3. The research is a process linking theory and practice
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De Lage Landen and TU/e: partners in knowledge
Given a practical problem: Design new business models for DLL
Create organizational change and study the process
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De Lage Landen and TU/e: partners in knowledge
Stages in action research IS
Diagnosis stage
• Collaborative analysis the social situation
Therapeutic stage
• Collaborative change
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De Lage Landen and TU/e: partners in knowledge
Stages in action research IS
Diagnosis stage
• Collaborative analysis the social situation
Therapeutic stage
• Collaborative change
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De Lage Landen and TU/e: partners in knowledge
Diagnosis stage
– Current vendor business model of DLL (Internal project derivable) Equipment Leasing
– Asset dominant Opportunity:
– Services as a new source of revenue
– State-of-the-art of Innovation driven business models in financial services (Beta Report, 2010 Lüftenegger et al)
Service orientation is becoming prevalent
– How to innovate our business models? Dominant logic trap as barrier to innovate
– (Chesbrough, Business Model Innovation : opportunities and barriers, Long Range Planing 2010)
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“The dominant logic is the prevailing wisdom
about how the world works
and how a company competes
on this world”
(Prahalad and Bettis 1986, Strategic management journal)
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Dominant logic trap in business model innovation The dominant logic trap happens because the current dominant logic
of a company act as a filter in a funnel that makes to ignore any other information that does not fit
Service orientedbusiness concepts
Dominant logic
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What are the relevant dominant logics?
Lusch and Vargo (Journal of Marketing, 2004- over 2000 citations)
Goods Dominant logic for the manufacture era
Service Dominant logic for the service era
Service orientedbusiness concepts
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De Lage Landen and TU/e: partners in knowledge
Stages in action research IS
Diagnosis stage
• Collaborative analysis the social situation
Therapeutic stage
• Collaborative change
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De Lage Landen and TU/e: partners in knowledge
How we can use the service dominant logic for developing new business models?
ServicedominantStrategyModel
Service dominant logic
Service dominant strategy
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De Lage Landen and TU/e: partners in knowledge
In AR, the foundation for recommendations is a
theoretical framework.
Consultants are expected to suggest solutions that, in their experience, proved successful in
similar situations
Bakerville 2009
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Service Business Logic Framework
Service DominantBusiness
model
Business processModel
IS Architecture and TechnologyModel
ServiceDominantStrategyModel
Service co-production withCustomers and partners
Cooperative IS and technologies
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De Lage Landen and TU/e: partners in knowledge
Service Business Logic Framework
Service DominantBusiness
model
Business processModel
IS Architecture and TechnologyModel
ServiceDominantStrategyModel
Operational Level of abstraction Intended strategy
Realized strategy
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De Lage Landen and TU/e: partners in knowledge
Service business logic framework
to drive the
collaborative change and
generate scientific knowledge
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De Lage Landen and TU/e: partners in knowledge
Service Business Logic Framework
Service DominantBusiness model
Business processModel
IS Architecture and TechnologyModel
ServiceDominantStrategyModel
Business conceptsScientific knowledgeAs contribution to science
What is a service dominant strategy?
As organizational change drivers
Define a service dominant strategy for the business concept
co-creation
What is a service dominant BM?
What is the BPM for a SDBM?
What are the underlying IS Archand technologies?
Define a service dominant business modelfor the business concept
Define a BP modelfor the business concept
Define the IS Arch and Technologies for the concept
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De Lage Landen and TU/e: partners in knowledge
Service Business Logic Framework
Service DominantBusiness model
Business processModel
IS Architecture and TechnologyModel
ServiceDominantStrategyModel
Business conceptsScientific knowledgeAs contribution to science As organizational change drivers
Defined business conceptsDefined Framework
Case building
Case building
Framew
ork building
Case building
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De Lage Landen and TU/e: partners in knowledge
Why this research is important?
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De Lage Landen and TU/e: partners in knowledge
Scientific contribution to the development of Service Science
Service dominantBusiness
model
Business processModel
IS Architecture and TechnologyModel
ServicedominantStrategyModel
Management constructs
Cooperative IS
Holistic view forService Science
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De Lage Landen and TU/e: partners in knowledge
What is already know?
There are not holistic view on service dominant business
Works are few and emerging recently
We did not had the link between Cooperative IS
with Business models
and strategy
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De Lage Landen and TU/e: partners in knowledge
Thanks for your attention
