3rd International Business Servitization Conference 13-14 November 2014 Bilbao

1. Anastacia Simonchik, Maya Hoveskog, Niklas Göthberg, Fawzi Halila, & Mike Danilovic
Business models and customer value of services
The case of Swedish wind energy industry
3rd International Conference on Business Servitization

2. Wind energy industry context
❖Inefficiency of O&M services and customer dissatisfaction
❖Need for business model innovation for servitization to address different customer groups in after sales
❖Basic industry energy companies
❖Energy companies
❖Investors
❖Project organisations
❖Customer value is unclear

3. Challenges
❖Customer value identification
❖It is unclear what is valuable to industrial customers, why and how to identify it; there is a call for more research on customer value and methods to identify it in industrial context (e.g. Keränen & Jalkala, 2013)

4. Purpose
❖By adopting industrial customer’s perspective, map customer perceived value of services and explore business model influence on it

5. Analytical framework
Business model elements
Customer perceived value
Determinants of customer value

6. Research design
Stage
Content
Outcome
1. Customer grouping
1.Exploration - workshop with turbine manufacturer (Gamesa Sweden AB)
2.Development - wind turbine owners secondary data analysi, own customer grouping and preliminary case selection
3.Finalizing - verification by industry consultant (Ecopower Academy Northern Europe AB)
Verified customer grouping (basic industry energy companies, energy companies, investors, project organisations) and final case selection (4 customers of wind turbines and O&M services representing each group)
2. Data collection & analysis
1. 4 interviews semi structured interviews + collection of secondary data 2. Case summaries according to analytical model
3. Cross case comparison
1. Industrial solution elements mapping
2. By case: business model elements influence on customer perceived value content
3. Determinants of customer perceived value

7. Example of mapped customer value & BM influence: basic industry
Elements of industrial solution
Actual value attributes
Desired value attributes
Business model elements that influenced
1. Service contract (operation and technical maintenance activities)
Functionality, alternative solutions
Flexibility, reliability
Competence (O&M management in other industries)
2. Software (SCADA system)
Functionality
n/a
Involvement in value creation (O&M activities)
3. Reports (summarised data on wind turbine performance & service activities)
Quality, alternative solutions
n/a
Involvement in value creation (O&M activities)
4. Training (technical and software education)
Technical competence
n/a
Intentions for development of involvement in value creation
5. Relationship with service provider
Collaborative exchange, co- creation, resulting value: more efficient solution
More collaborative exchange: better communication, cooperation and equality; reapplying competences
Competence

8. Findings: Identified Determinants
Business model elements that determinants derived from
Determinants
Key resources
O&M competence
Characteristics of fleet under operation
Key activities
Involvement in value creation (O&M activities)
Business model
Intentions for development of value creation involvement

9. Discussion & Conclusion
❖Identified determinants can serve as the basis for BMI for servitization in wind energy industry in Sweden:
•customer grouping for wind turbine after sales services
•development of value proposition to fit customer specific needs/ determinants of each specific customer group
❖Similar factors have been identified in studies from supplier’s perspective

10. Questions & comments
Thank you!