Capture value through revenue models impacted by digital servitization in the automotive industry An interview study at CEVT
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Typ
Examensarbete för masterexamen
Master's Thesis
Master's Thesis
Program
Management and economics of innovation (MPMEI), MSc
Publicerad
2023
Författare
Berg, Amanda
Ellmarker, Moa
Modellbyggare
Tidskriftstitel
ISSN
Volymtitel
Utgivare
Sammanfattning
As a result of digital servitization, the automotive industry has undergone significant
transformations disrupting traditional revenue models and revolutionizing how companies
generate revenue from their vehicles. Digital servitization has created opportunities for the
introduction of new revenue sources such as mobility solutions as well as the opportunity to
offer smart digital services as an additional revenue source. A main challenge however is the
servitization paradox, which becomes present along with these changes. It indicates that it is
harder to generate high profit margins from pure services, which puts the automotive industry
in a complex situation of how to be profitable. To stay profitable, it puts high demands on
understanding the user-value and how to capture this value through different revenue models.
By grasping how the transformation in the automotive industry impacts how companies can
stay profitable, the purpose of this study is to explore how digital servitization impacts how value
can be captured through existing and new revenue models in the automotive industry.
To gain this understanding the study has been conducted at the innovative R&D company
CEVT through an interview study. By fulfilling the purpose, the study also aims to give insights
to CEVT on how to take strategic decisions and build compelling business cases with strong
profitability analysis in this new automotive industry.
The findings of this study are mainly presented in the shape of archetypes visualizing how value
can be captured in specific revenue models in the automotive industry. Significantly the shift
from traditional to more innovative revenue models show how the impact on user-value shift
from originating from the hardware and car-specification in the vehicle, to softer factors such
as convenience, flexibility, and freedom of responsibility. Unexpectedly, findings showed that
the potential of selling digital services as an additional revenue is equally big between traditional
and innovative revenue models, if they are distributed the right way. Furthermore, the study
emphasizes the importance of including value-based pricing strategy when moving across the
scale of digital servitization and towards more innovative revenue models. The main theoretical
contribution of this study is the proposed value-driven product-service framework that combines
the theoretical concepts of digital servitization, user-value and revenue models.
Beskrivning
Ämne/nyckelord
Digital servitization , User-value , Capture value , Value-based pricing , Revenue model , Revenue source , Digital service