A solution business model: Capabilities and management practices for integrated solutions

The developed solution business model framework assists firms wishing to design solution business models by categorizing capabilities and management practices necessary for the effective management of such a business model. The developed framework integrates findings from a wide variety of research streams with the empirical data collected in an abductive research process, involving ten firms with multi-national operations. The framework consist of a solution process with four phases (develop solutions, create demand, sell solution, and deliver solution) and three groups of cross-functionality issues (commercialization, industrialization, and solution platform). The framework identifies twelve capability categories, and sixty-four capabilities and management practices pertinent to the effective management of solution business. The research points to the importance of cross-functional alignment within firms. An effective solution business model requires the intricate coordination of resources and business processes across all functions.

Research highlights► Firms must move beyond selling and delivering ad-hoc solutions. ► Solutions are processes, not combinations of goods, services and knowledge elements. ► Commercialization and industrialization are parallel, not sequential processes. ► Effective solution business requires intricate coordination across all functions. ► We identified 64 capabilities pertinent to effective solution business management.