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Institut / FIR-Bereiche
This chapter addresses the market launch and sales of smart services. It opens with an introduction of the new challenges that the market launch of smart services creates for companies. Then follows the discussion of a four-phase approach to the market launch of smart services. Subsequently, successful practices are presented for this approach along eight design fields of the market launch. [https://link.springer.com/chapter/10.1007/978-3-030-58182-4_8]
Subscription business models provide an important component for monetizing the potential of Industrie 4.0. Subscription business is based on a long-term and participative business relationship between customer and provider. However, only digitalization offers the necessary framework conditions to realize the characteristic recurring and performance-based billing, and to ensure the necessary transparency about the usage phase of products as well as continuous performance improvements in the customer process. Against this background, companies must not only recognize the much-cited potential that lies in the total dedication to the success of individual subscription customers. Rather, the central obstacles must be addressed, examined, and subsequently overcome in a targeted manner in order to successfully establish subscription business models and place them on the market.
A subscription business model - that sounds like significant economic advantages. Therefore, the question arises: Why haven't all manufacturing companies established this type of participative business model yet?
The answer: The development and implementation of subscription business models go hand in hand with central challenges that companies have to overcome in the course of a business model transformation. This expert paper helps with this.
Pricing for Smart-Product-Service-Systems in Subscription Business Models for Production Industries
(2021)
In the production industry, subscription business models have the potential to create long-term relationships where a supplier provides a continuous value-oriented service to a customer based on digitalisation. Monetising this increase in value through pricing represents a central challenge for suppliers in subscription business. Unlike the current dominant transactional business, the focus of pricing is on the value-in-use of the customer (e.g. on the increase in output for the customer). In this regard, there is so far no pricing approach for practice that allows the linking of the performance data of the customer with the periodically charged price. However, in subscription businesses, such an approach is required to create win-win situations for the customer and supplier through continuous performance improvement. Therefore, this paper develops a novel process model for pricing of smart-product-service-systems in subscription business for production industries. This process can serve as basis for suppliers of subscriptions in the production industry to align pricing with the created value-in-use. In the long term, this allows companies to systematically develop their pricing to monetise the potential of digitalisation.