Article | Proceedings of the 2nd CIRP IPS2 Conference 2010; 14-15 April; Linköping; Sweden | Assessing the potential of business model innovation for investment goods through Life Cycle Costing

Title:
Assessing the potential of business model innovation for investment goods through Life Cycle Costing
Author:
J. Van Ostæyen: Centre for Industrial Management, K.U.Leuven, Heverlee, Belgium J. Duflou: Centre for Industrial Management, K.U.Leuven, Heverlee, Belgium
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Full text (pdf)
Year:
2010
Conference:
Proceedings of the 2nd CIRP IPS2 Conference 2010; 14-15 April; Linköping; Sweden
Issue:
077
Article no.:
068
Pages:
527-534
No. of pages:
8
Publication type:
Abstract and Fulltext
Published:
2012-10-11
ISBN:
978-91-7393-381-0
Series:
Linköping Electronic Conference Proceedings
ISSN (print):
1650-3686
ISSN (online):
1650-3740
Publisher:
Linköping University Electronic Press; Linköpings universitet


In light of increasing competitive pressure; many manufacturers of investment goods are growing aware of the importance of business model innovation. Alternative business models that put more emphasis on the service content of the value proposition are gaining ground across many sectors. Manufacturers often face the challenge to identify the business model with the greatest earning potential. This paper demonstrates that Life Cycle Costing can be used to identify and quantify the potential for business model innovation. The relevance of this approach is illustrated with the findings of eighteen in-depth interviews with executives of Belgian industrial companies.

Keywords: Product Service Systems; Business Model; Life Cycle Costing

Proceedings of the 2nd CIRP IPS2 Conference 2010; 14-15 April; Linköping; Sweden

Author:
J. Van Ostæyen, J. Duflou
Title:
Assessing the potential of business model innovation for investment goods through Life Cycle Costing
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Proceedings of the 2nd CIRP IPS2 Conference 2010; 14-15 April; Linköping; Sweden

Author:
J. Van Ostæyen, J. Duflou
Title:
Assessing the potential of business model innovation for investment goods through Life Cycle Costing
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