Product-based business model


  • primarily product focused

  • especially in B2B: risk of commoditization of the main product lines

  • dependancy on few product lines (80/20-rule)

  • competitors will be on different growth path

  • risk of reducing profitability due to increasing competition, price transparency, ...

  • general issues to diffeentiate own product offering

  • increasingly limited added value for customers


"Hybrid" business

model


  • business model focused on a mix of products and supporting services

  • differentiation through specific services that enhance the product benefits and are payable

  • added value for the customer ("lock-in")

  • additional income streams to safeguard the company's future

  • future-oriented business model that incorporates digital elements

  • reduced business risk as turnover streams are spread across product and service portfolio

Service-based business model


  • business model mainly based on a strong service offering with supporting product portfolio

  • differentiation through superior service level

  • need to constantly invest into new services and srvice ideas

  • limited influence of product-related benefits

  • added value reduced as "package benefits" are becoming less visible to the market

  • reduced income from products leads to reduced perceived value of product offering 

Digitalisation, Innovation and Servitization