articleJournal of Product Innovation ManagementDec 27, 2019HYBRID OA

Value Creation and Value Capture Alignment in Business Model Innovation: A Process View on Outcome‐Based Business Models

Luleå University of Technology · Copenhagen Business School

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Abstract

Industrial manufacturers are innovating their business models by shifting from selling products to selling outcome‐based services, where the provider (manufacturer) guarantees to deliver the performance outcomes of the products and services. This form of business model innovation requires a profound yet little understood shift in how value is created, delivered, and captured. To address this research gap, our study examines two successful and four unsuccessful cases of this shift. We find that effectiveness in business model innovation hinges on the three process phases that unfold in collaboration with the customers: value proposition definition, value provision design, and value‐in‐use delivery. We also find…

Citation impact

478
total citations
FWCI
49.08
Percentile
100%
References
76
Citations per year

Authors

4

Topics & keywords

Keywords
  • Value capture
  • Value creation
  • Outcome (game theory)
  • Value (mathematics)
  • Business
  • Process (computing)
  • Business value
  • Business model
UN Sustainable Development Goals
  • Industry, innovation and infrastructure
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