Planning a Smart Service Business Integrating External Partners

Abstract

Today’s manufacturing industry is confronted with fundamental changes in value creation. The tension between the two megatrends of digitization and servitization leads to new hybrid market offerings, so-called smart services. Corresponding business models and value networks fundamentally differ from traditional ones. Developing smart services requires an advanced management of business models and new competences in young disciplines, while their provision requires new internal and external organizational structures or processes. To strengthen their competitive position, manufacturing companies need to extend their business model portfolios and adapt their value networks. However, the highly complex transformation of value creation especially challenges small and medium-sized companies due to limited competences and resources. They must consider opening their boundaries and collaborating with partners. In this chapter, we introduce a basic framework for designing smart services and present a methodology for the planning of a smart service business integrating external partners. The methodology is structured into five phases: Examination of smart service portfolio, analysis of business models and environment, business model portfolio planning, competence identification and analysis, and value creation planning. The methodology is explained by an example on cable marker printers.