The Role of Business Model Design in the Service Engineering Process: A Comparative Case Study in the Field of Cloud Computing to Join Service Engineering with Business Model Design

Abstract

This paper outlines the increasing challenges and perspectives of service innovation in new business models and the relationship between service innovation and business development procedures such as service engineering and business model design concepts. It describes the main drivers of service innovation and identifies what makes service innovation so important today, consequences for (service) business modeling as well as the implications for an integrated development approach of service and business model innovation. A comparative analysis shows that in general Osterwalder's Business Model Design approach compliments the strategy-based service engineering process well in most areas. Using the toolbox of the Business Model Canvas complemented by specific methods and tools from the service engineering approach, new complex service systems can be developed in a systematic and holistic manner. Our findings from applying the theoretical results in a case study to developing a new business model for a cloud-based SaaS solution show that business modeling needs to be continuously cross-linked to the entire service engineering process to adapt to ever changing customer needs and vice versa.