Service business logic framework

1. Service business logic framework Egon Lüftenegger, Information Systems Group, TU/e

2. Innovation initiative at De LageLanden • This project was initiated by the former CEO of De LageLanden (DLL) to trigger innovation and develop new business for the future. Innovation Lab TU/e

3. Project Challenges • Researching closely with the industry have unique settings and issues that need to be addressed. • Aligning the goals of industry and academia has been a major challenge. • Industry want a business development and • Academia wants a research contribution

4. How to approach this situation? How to discover the research opportunities?

5. Action Research!Solve practical problems while expanding scientific knowledge Baskerville, 2004, Management Information Systems Quarterly

6. Action research in Information Systems (IS) • Investigating IS with Action Research (Baskerville,1999) : • The researcher is actively involved, with expected benefit for both researcher and the organization • The knowledge obtained can be immediately applied, there is not sense of detached observer, but an active participant whishing to utilize any new knowledge based on and explicit, clear conceptual framework • The research is a process linking theory and practice

7. Given a practical problem: Design new business models for DLLCreate organizational change and study the process

8. Stages in action research IS

9. Stages in action research IS

10. Diagnosis stage • Current vendor business model of DLL (Internal project derivable) • Equipment Leasing • Asset dominant • Opportunity: • Services as a new source of revenue • State-of-the-art of Innovation driven business models in financial services (Beta Report, 2010 Lüftenegger et al) • Service orientation is becoming prevalent • How to innovate our business models? • Dominant logic trap as barrier to innovate • (Chesbrough, Business Model Innovation : opportunities and barriers, Long Range Planing 2010)

11. “The dominant logic is the prevailing wisdom about how the world works and how a company competes on this world” (Prahalad and Bettis 1986, Strategic management journal)

12. Dominant logic trap in business model innovation • The dominant logic trap happens because the current dominant logic of a company act as a filter in a funnel that makes to ignore any other information that does not fit Dominant logic Service oriented business concepts

13. What are the relevant dominant logics? Luschand Vargo (Journal of Marketing, 2004- over 2000 citations) • Goods Dominant logic for the manufacture era • Service Dominant logic for the service era Service oriented business concepts

14. Stages in action research IS

15. How we can use the service dominant logic for developing new business models? Service dominant logic Service dominant strategy Service dominant Strategy Model

16. In AR, the foundation for recommendations is atheoretical framework.Consultants are expected to suggest solutions that, in their experience, proved successful in similar situations Bakerville 2009

17. Service Business Logic Framework Service Dominant Strategy Model Service co-production with Customers and partners Service Dominant Business model Business process Model Cooperative IS and technologies IS Architecture and Technology Model

18. Service Business Logic Framework Operational Level of abstraction Intended strategy Service Dominant Strategy Model Service Dominant Business model Business process Model IS Architecture and Technology Model Realized strategy

19. Service business logic framework to drive the collaborative change and generate scientific knowledge

20. Service Business Logic Framework co-creation Business concepts Scientific knowledge As contribution to science Service Dominant Strategy Model As organizational change drivers What is a service dominant strategy? Define a service dominant strategy for the business concept Service Dominant Business model Define a service dominant business model for the business concept What is a service dominant BM? Define a BP model for the business concept Business process Model What is the BPM for a SDBM? Define the IS Arch and Technologies for the concept IS Architecture and Technology Model What are the underlying IS Arch and technologies?

21. Service Business Logic Framework Business concepts Scientific knowledge As contribution to science Service Dominant Strategy Model As organizational change drivers Case building Service Dominant Businessmodel Framework building Case building Case building Business process Model IS Architecture and Technology Model Defined Framework Defined business concepts

22. Why this research is important?

23. Scientific contribution to the development of Service Science Service dominant Strategy Model Management constructs Holistic view for Service Science Service dominant Business model Business process Model Cooperative IS IS Architecture and Technology Model

24. What is already know? There are not holistic view on service dominant business Works are few and emerging recently We did not had the link between Cooperative IS with Business models and strategy

25. Thanks for your attention