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Applying value proposition design for developing smart service business models in manufacturing firms

: Neuhüttler, Jens; Woyke, Inka; Ganz, Walter


Freund, Louis E. (Ed.):
Advances in The Human Side of Service Engineering : Proceedings of the AHFE 2017 International Conference on The Human Side of Service Engineering, July 17−21, 2017, The Westin Bonaventure Hotel, Los Angeles, California, USA
Cham: Springer International Publishing, 2018 (Advances in Intelligent Systems and Computing 601)
ISBN: 978-3-319-60485-5 (Print)
ISBN: 978-3-319-60486-2 (Online)
International Conference on Applied Human Factors and Ergonomics (AHFE) <8, 2017, Los Angeles/Calif.>
International Conference on the Human Side of Service Engineering <2017, Los Angeles/Calif.>
Fraunhofer IAO ()

The digital transformation of economies is one of the megatrends of today’s world. The advancing equipment of machines and products with sensors and connectivity as well as their intelligent interconnection among each other leads to a mergence between physical and virtual worlds. This development is not limited to smart production systems in terms of an “Industry 4.0” only, but will also affect the increasingly important service business of manufacturing companies. Regarding “Smart Services” (data-based bundles of services, digital applications and technologies), the development of appropriate business models is seen as a key challenge for companies. Our paper illustrates how the approach “Value Proposition Design” can support manufacturing firms to develop Smart Service Business Models. Thus, we present insights from an applied research project, in which two different Business Model alternatives have been derived from applying Value Proposition Design.