Title: Key prerequisites for ecosystem-based business - servitisation journey in software companies

Authors: Kirsi Kokkonen; Sari Laitinen; Ville Ojanen

Addresses: Industrial Engineering and Management, LUT School of Engineering Science, LUT University, Yliopistonkatu 34, FI-53850 Lappeenranta, Finland ' Industrial Engineering and Management, LUT School of Engineering Science, LUT University, Yliopistonkatu 34, FI-53850 Lappeenranta, Finland ' Industrial Engineering and Management, LUT School of Engineering Science, LUT University, Yliopistonkatu 34, FI-53850 Lappeenranta, Finland

Abstract: Many companies across different industries have been encountering a strategic value transition from product - or technology-oriented business towards service-based business. The increasing complexity of value propositions in service-based business requires closer collaboration and openness between companies. As a result, companies' interest in ecosystem-based business has been increasing. However, companies moving towards ecosystem-based business encounter challenges as they need to renew their knowledge and business capabilities. This study presents nine main characteristics of business ecosystems to take into account, based on a literature review, and reflects with an empirical case study what kind of prerequisites they pose to three software companies targeting to ecosystem-based service business. The paper offers a framework with which the companies can think over the validity of their current situation in relation to the requirements of service-based business in ecosystems and offers new insights on how to support the adoption of ecosystem-based business activities in companies.

Keywords: business ecosystem; ecosystem-based business; collaboration; customer value; value co-creation; service; service business; servitisation; software industry; business model.

DOI: 10.1504/IJBE.2021.116594

International Journal of Business Environment, 2021 Vol.12 No.3, pp.227 - 247

Received: 24 Jun 2020
Accepted: 14 Oct 2020
Published online: 28 Jul 2021 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article