Abstract

The emergence of service-dominant logic has influenced business in many domains. It emphasizes the interaction of the producer, consumer, and other value-network partners as they co-create value through collaborative processes. These processes can be seen as service-for-service exchanges of these actors, which contrasts with the output orientation of the goods-dominant-logic that emphasizes how actors exchange output units. This paradigm transition has significant implications on doing business: the business requirements to services will change faster, and the complexity of valuenetworks required to meet these requirements will increase further. This requires new approaches to business engineering that are grounded in the premises of service-dominant logic. This paper introduces the service-dominant business model radar (SDBM/R) as an integral component of the business engineering framework that we have developed for engineering network-based, service-dominant business. Existing approaches to business model design follow an organization-centric view rooted in goods-dominant-logic, which does not allow adequately modeling the character of service-dominant business. The SDBM/R was developed with close collaboration with industry experts and empirically validated through a series of hands-on workshops with industry professionals from several domains. Thereby, this paper contributes a novel business design approach that has proper academic background and relevant practical embedding.

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