Servitization-driven Business Model Innovation : A Case Study in the Maritime Industry

Manufacturing firms have in recent times increasingly started to adopt servitization strategies in order to combine products and services into hybrid offerings, resulting in business model innovation. This study explores how servitization drives business model innovation in an original equipment manufacturer (OEM) operating in the maritime industry, where focus is on how the business model components are reconfigured and what organizational challenges the firm face during this transition. A qualitative single case study was conducted, where interviews with employees across multiple departments was made. The findings illustrate that servitization acts as a driver for business model innovation, resulting in reconfiguration of the business model components value proposition, customer relationship, revenue model, resources, and the value network. However, barriers to the transition includes internal fragmentation and lack of alignment across the organization. The study adds to the theoretical contribution by highlighting the importance of internal coordination and harmonizing of the organization as prerequisites for business model innovation driven by servitization. The thesis practical contributions emphasize the need for shared understanding, leadership commitment, education about servitization, leverage current capabilities, and ownership over the servitization process.