Business model (BM) innovation and servitization are two emerging trends in literature and in practice, and both are expected to gain more importance in the future. The delivery of innovations (products or services) to the market often passes through a change in the BM. Furthermore, most of the content of the BM depends on management accounting information; however, this kind of literature contributed to it implicitly and in a fragmented specialized manner. Servitization is a way to innovate BM but its implementation requires new or revised performance and cost measures due to the characteristics of services and the need to manage the value co-creation process. Little attention has been posed on how Cost and Performance Management System (CPMS) should change to support servitization within a BM innovation process. Drawing on contingency theory and adopting a case study analysis, this research explores how CPMS can support servitization within the process of BM innovation. Particularly we examined the case of a racing car manufacturer, which changed its BM from making and selling racing cars to offering both racing cars and intensive knowledge services. Our findings show that CPMS increased its sophistication with the aim to support product-service profitability analysis, services development and pricing decisions.
Cost and performance measurement system to support business model innovation: the case of servitization in a racing car manufacturer
Riccardo Giannetti
;Andrea Dello Sbarba;
2017-01-01
Abstract
Business model (BM) innovation and servitization are two emerging trends in literature and in practice, and both are expected to gain more importance in the future. The delivery of innovations (products or services) to the market often passes through a change in the BM. Furthermore, most of the content of the BM depends on management accounting information; however, this kind of literature contributed to it implicitly and in a fragmented specialized manner. Servitization is a way to innovate BM but its implementation requires new or revised performance and cost measures due to the characteristics of services and the need to manage the value co-creation process. Little attention has been posed on how Cost and Performance Management System (CPMS) should change to support servitization within a BM innovation process. Drawing on contingency theory and adopting a case study analysis, this research explores how CPMS can support servitization within the process of BM innovation. Particularly we examined the case of a racing car manufacturer, which changed its BM from making and selling racing cars to offering both racing cars and intensive knowledge services. Our findings show that CPMS increased its sophistication with the aim to support product-service profitability analysis, services development and pricing decisions.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
