Towards a service-based business model – Key aspects for future competitive advantage

SummaryMany product-based companies are seeking to increase their competiveness by moving towards a service-based business model. This research is based on a multiple case study of seven manufacturing companies and by using the business model concept it links managerial activities to a service innovation framework to emphasise how companies can best take advantage of a new service-based business model. Findings indicate that companies need to focus on all areas of their business models in a holistic fashion, and not just change isolated elements. Among other challenges, companies must develop their abilities to build relationships with customers, to visualize the intangible value of their service offerings, and to advance a dynamic service offering portfolio that is adaptive to changing customer needs.