Abstract
The paper aims to propose a business model framework under a product-service approach in the aerospace industry based on the main elements identified in the literature. Through a Multi Criteria Decision Method - the AHP (Analytical Hierarchy Process) - a set of elements was prioritized by nine specialists from the industry for establishing a fractional ownership business model in the civilian market of a Brazilian helicopter manufacturer. The results indicate ten elements for composing the business model framework, in which value proposition, customers and culture are part of it. The practical implication of this study indicates an opportunity to boost the integration of product and service in the aerospace industry, specially using AHP for business model construction. For future researches, others companies can be considered in the study. In addition to manufacturers, service firms or operators of helicopters can compose the specialists group. Besides, another Multi Criteria Decision Method can be applied aiming to do a comparative analysis of the results among the methods. The paper fulfills a gap about how business model is structured in a product-service integration context, especially in an industry originally considered as manufacturer.
Highlights
Products are missing a differential among manufacturers in terms of technology innovation
For Morris, Schindehutte, and Allen (2005, p. 729), “[...] there is no business without a defined value proposition, and the creation of value provides a justification for the business entity”
Customer Attraction and Retention and New Product Development are the key processes to translate the fractional ownership idea into a tangible physical asset bundled with service activities aiming to attend market opportunities
Summary
Products are missing a differential among manufacturers in terms of technology innovation. According to Dubosson-Torbay, Osterwalder, and Pigneur (2001), business model concept became popular by the influence of ICT (Information and Communications Technology) and by an increasing complexity and uncertainty involving managers to make decisions. This phenomenon was led by the Information Age from the 80s (Applegate, 2001), guiding the research subjects about business models. With nine building blocks (customer segments; value proposition; channels; customer relationships; revenue streams; key resources; key activities; key partnerships and cost structure), Osterwalder and Pigneur (2010) proposed a framework – the Canvas Model - that defines business model as a way of how an organization creates, deliveries and captures value. It offers an integrated approach to value with a focus on customer value and value creation (Fielt, 2011)
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