Service Logic Business Model Canvas

Abstract

PurposeThe purpose of this study is to develop a service logic oriented framework for business model development. “Service logic” covers the basic principles of the three contemporary customer value focused business logics: service-dominant logic, service logic and customer-dominant logic.Design/methodology/approachThis study is based on an empirical qualitative research and deployed the focus group method. The data are generated in a series of interactive co-creative focus group workshops involving both practitioners and academics.FindingsAs the outcome, a new tool was developed, called Service Logic Business Model Canvas. The new canvas is a modified version of the original Business Model Canvas (Osterwalder and Pigneur, 2010).Research limitations/implicationsThis study adopts service logic in business model thinking and increases knowledge on how to keep the customer needs in the centre of business model development.Practical implicationsThe developed canvas makes the theory of service-dominant logic tangible and easily applicable in practice. It enables service innovation truly based on customer value by ensuring that the customer is in the centre of all the elements of a business model. It can function both as a rapid prototype of a new business model and as a communication tool that quickly illustrates the company’s current business model. It can also help in creating a customer-centred business culture. It is designed to be applied to each customer profile separately, thus enabling a deeper understanding of the customer logic of each relevant profile.Originality/valueEarlier business model frameworks tend to be provider-centric and goods-dominant, and require further development and adaptation to service logic. This study adopts service logic in business model thinking. It embeds the true and deep customer understanding and customer value in each element of the business model, and contributes to both business model and service-dominant logic literature.