1. TU/e Service business logic framework Egon Lüftenegger, Information Systems Group, TU/e

2. BETA Conference 2011 2 De Lage Landen and TU/e: partners in knowledge Innovation initiative at De Lage Landen  This project was initiated by the former CEO of De Lage Landen (DLL) to trigger innovation and develop new business for the future. Innovation Lab TU/e

3. BETA Conference 2011 3 De Lage Landen and TU/e: partners in knowledge Project Challenges  Researching closely with the industry have unique settings and issues that need to be addressed.  Aligning the goals of industry and academia has been a major challenge. –Industry want a business development and –Academia wants a research contribution

4. BETA Conference 2011 4 De Lage Landen and TU/e: partners in knowledge

5. BETA Conference 2011 5 De Lage Landen and TU/e: partners in knowledge Action Research! Solve practical problems while expanding scientific knowledge Baskerville, 2004, Management Information Systems Quarterly

6. BETA Conference 2011 6 De Lage Landen and TU/e: partners in knowledge Action research in Information Systems (IS)  Investigating IS with Action Research (Baskerville,1999) : 1.The researcher is actively involved, with expected benefit for both researcher and the organization 2.The knowledge obtained can be immediately applied, there is not sense of detached observer, but an active participant whishing to utilize any new knowledge based on and explicit, clear conceptual framework 3.The research is a process linking theory and practice

7. BETA Conference 2011 7 De Lage Landen and TU/e: partners in knowledge

8. BETA Conference 2011 8 De Lage Landen and TU/e: partners in knowledge Stages in action research IS Diagnosis stage Collaborative analysis the social situation Therapeutic stage Collaborative change

9. BETA Conference 2011 9 De Lage Landen and TU/e: partners in knowledge Stages in action research IS Diagnosis stage Collaborative analysis the social situation Therapeutic stage Collaborative change

10. BETA Conference 2011 10 De Lage Landen and TU/e: partners in knowledge Diagnosis stage –Current vendor business model of DLL (Internal project derivable)  Equipment Leasing –Asset dominant  Opportunity: –Services as a new source of revenue –State-of-the-art of Innovation driven business models in financial services (Beta Report, 2010 Lüftenegger et al)  Service orientation is becoming prevalent –How to innovate our business models?  Dominant logic trap as barrier to innovate –(Chesbrough, Business Model Innovation : opportunities and barriers, Long Range Planing 2010)

11. BETA Conference 2011 11 De Lage Landen and TU/e: partners in knowledge

12. BETA Conference 2011 12 De Lage Landen and TU/e: partners in knowledge Dominant logic trap in business model innovation  The dominant logic trap happens because the current dominant logic of a company act as a filter in a funnel that makes to ignore any other information that does not fit Service oriented business concepts Dominant logic

13. BETA Conference 2011 13 De Lage Landen and TU/e: partners in knowledge What are the relevant dominant logics? Lusch and Vargo (Journal of Marketing, 2004- over 2000 citations)  Goods Dominant logic for the manufacture era  Service Dominant logic for the service era Service oriented business concepts

14. BETA Conference 2011 14 De Lage Landen and TU/e: partners in knowledge Stages in action research IS Diagnosis stage Collaborative analysis the social situation Therapeutic stage Collaborative change

15. BETA Conference 2011 15 De Lage Landen and TU/e: partners in knowledge How we can use the service dominant logic for developing new business models? Service dominant Strategy Model Service dominant Strategy Model Service dominant logic Service dominant strategy

16. BETA Conference 2011 16 De Lage Landen and TU/e: partners in knowledge In AR, the foundation for recommendations is a theoretical framework. Consultants are expected to suggest solutions that, in their experience, proved successful in similar situations Bakerville 2009

17. BETA Conference 2011 17 De Lage Landen and TU/e: partners in knowledge Service Business Logic Framework Service Dominant Business model Service Dominant Business model Business process Model Business process Model IS Architecture and Technology Model IS Architecture and Technology Model Service Dominan t Strategy Model Service Dominan t Strategy Model Service co-production with Customers and partners Cooperative IS and technologies

18. BETA Conference 2011 18 De Lage Landen and TU/e: partners in knowledge Service Business Logic Framework Service Dominant Business model Service Dominant Business model Business process Model Business process Model IS Architecture and Technology Model IS Architecture and Technology Model Service Dominan t Strategy Model Service Dominan t Strategy Model Operational Level of abstraction Intended strategy Realized strategy

19. BETA Conference 2011 19 De Lage Landen and TU/e: partners in knowledge

20. BETA Conference 2011 20 De Lage Landen and TU/e: partners in knowledge Service Business Logic Framework Service Dominant Business model Service Dominant Business model Business process Model Business process Model IS Architecture and Technology Model IS Architecture and Technology Model Service Dominan t Strategy Model Service Dominan t Strategy Model Business concepts Scientific knowledge As contribution to science What is a service dominant strategy? As organizational change drivers Define a service dominant strategy for the business concept co-creation What is a service dominant BM? What is the BPM for a SDBM? What are the underlying IS Arch and technologies? Define a service dominant business model for the business concept Define a BP model for the business concept Define the IS Arch and Technologies for the concept

21. BETA Conference 2011 21 De Lage Landen and TU/e: partners in knowledge Service Business Logic Framework Service Dominant Business model Service Dominant Business model Business process Model Business process Model IS Architecture and Technology Model IS Architecture and Technology Model Service Dominan t Strategy Model Service Dominan t Strategy Model Business concepts Scientific knowledge As contribution to science As organizational change drivers Defined business conceptsDefined Framework Case building Framework building Case building

22. BETA Conference 2011 22 De Lage Landen and TU/e: partners in knowledge

23. BETA Conference 2011 23 De Lage Landen and TU/e: partners in knowledge Scientific contribution to the development of Service Science Service dominant Business model Service dominant Business model Business process Model Business process Model IS Architecture and Technology Model IS Architecture and Technology Model Service dominant Strategy Model Service dominant Strategy Model Management constructs Cooperative IS Holistic view for Service Science

24. BETA Conference 2011 24 De Lage Landen and TU/e: partners in knowledge

25. BETA Conference 2011 25 De Lage Landen and TU/e: partners in knowledge