Abstract
The emergence of smart services across industry sectors has transformed the way service providers co-create value with their customers. While the development of a smart service requires substantial effort in itself, a critical step is oftentimes neglected in the process: defining a sustainable revenue model. Key decisions need to be made on setting a price and choosing a revenue mechanism that defines how customers are charged (e.g., subscription, pay per use). This chapter provides guidance to organizations on selecting a revenue mechanism that fits the needs of the smart service and the customer situation. Furthermore, this section sheds light on the reasons why customers hesitate to pay for smart services in the first place and what practices services providers can apply to overcome those hesitations.
This chapter is based on the papers: Enders et al. (2019), Enders et al. (2020), Schüritz et al. (2017a).
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Chesbrough, H., & Rosenbloom, R. S. (2002). The role of the business model in capturing value from innovation: Evidence from Xerox Corporation’s technology spin-off companies. Industrial and Corporate Change, 11(3), 529–555.
Davenport, T. H. (2013). Analytics 3.0. Harvard Business Review, 91(12), 64.
Enders, T., Schüritz, R., & Frey, W. (2019). Capturing value from data: Exploring factors influencing revenue model design for data-driven services. In Proceedings of 14th international conference on Wirtschaftsinformatik (pp. 1724–1738).
Enders, T. et al. (2020). Igniting the spark: Overcoming organizational change resistance to advance innovation adoption – The case of data-driven services. In Proceedings of 10th International Conference on Exploring Service Science.
Johnson, M. W., Christensen, C. M., & Kagermann, H. (2008). Reinventing your business model. Harvard Business Review, (December), 1–10.
LaValle, S., et al. (2011). Big data, analytics and the path from insights to value. MIT Sloan Management Review, 52(2), 21–31.
Neely, A. (2008). Exploring the financial consequences of the servitization of manufacturing. Operations Management Research, 1(2), 103–118.
Schüritz, R., Seebacher, S., & Dorner, R. (2017a). Capturing value from data: Revenue models for data-driven services. In Proceedings of the 50th Hawaii international conference on system sciences.
Schüritz, R. et al. (2017b). Datatization as the next frontier of Servitization – Challenges of organizational transformation. In Proceedings of 38th international conference on information systems.
Teece, D. J. (2010). Business models, business strategy and innovation. Long Range Planning, 43(2–3), 172–194.
Wixom, B. H., & Ross, J. W. (2017). How to monetize your data. MIT Sloan Management Review, 58(3), 10.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2020 Springer Nature Switzerland AG
About this chapter
Cite this chapter
Enders, T., Schüritz, R. (2020). Capturing the Value: How to Charge for Smart Services. In: Maleshkova, M., Kühl, N., Jussen, P. (eds) Smart Service Management. Springer, Cham. https://doi.org/10.1007/978-3-030-58182-4_7
Download citation
DOI: https://doi.org/10.1007/978-3-030-58182-4_7
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-030-58181-7
Online ISBN: 978-3-030-58182-4
eBook Packages: Computer ScienceComputer Science (R0)