Abstract
Today’s enterprises face the need to develop user-specific solutions due to the disruptive technologies and competition in the market. Intangibility of services and service-orientation fosters creation of flexible solutions by innovating business models, service processes and service products. Capabilities are perceived as measuring indicator of service orientation in enterprises and one requirement for business model innovation. This paper investigates how design of capabilities can help enterprises to offer novel services. To do so, we analyze the degree of innovation before and after applying the capability-driven development (CDD), which is a methodological and technological enterprise modelling approach. Based on observations from two industrial cases affected from the main forces that disturb the business terrain, the paper concludes that CDD helps enterprises to innovate their digital services by causing changes mainly on business model and service process levels.
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