Extended Product Business Model Development in Four Manufacturing Case Studies

Abstract

Business Models in manufacturing are focused on selling tangible products and are in danger of being copied by competitors from emerging economies. In response, the value share of services is increased to parity with the product and beyond. To realize such an “Extended Product” (EP), manufacturers need to establish a “Manufacturing Service Ecosystem” (MSE) with adequate service providers, requiring radical changes to the business model. This paper describes a methodology that enables manufacturers to integrate EP and MSE into their business models and analyzes the results of its application in four manufacturing case studies from different countries and industrial sectors.