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Glansén, E. och Nielsen, S. (2016) Business Model Innovation in a Mature Industry - A Case Study at Parker Hannifin SCS. Göteborg : Chalmers University of Technology (Master thesis. E - Department of Technology Management and Economics, Chalmers University of Technology, Göteborg, Sweden, nr: E2016:095).
BibTeX
@mastersthesis{
Glansén2016,
author={Glansén, Elin and Nielsen, Sofie},
title={Business Model Innovation in a Mature Industry - A Case Study at Parker Hannifin SCS},
abstract={Changes in the environment, driven by globalization and technology development, give ground
to instability and uncertainty within industries. Consequently, stable business models are
challenged by disruption of previous industry boundaries and competition. While close
innovation become progressively ambiguous, firms grow further dependent on external sources
for innovation. Furthermore, translated to original equipment manufacturers, actors are
subjected to developments in technology, customer behavior and tough market sentiments. In
response to the changing dynamics, actors are found to invest in business model change to adapt
to the new environment. In turn, the pressure is transferred onto suppliers, where Parker
Hannifin SCS must engage in similar investments and align with prevailing changes, not to face
the risk of business model obsolesce or incompatibility with its customers. Yet, as the business
model is an interdependent system, an alteration in one dimension will require accordingly
adjustment in the remainder parts.
The aim of this thesis is to understand how a company within a mature industry proactively can
engage to innovate the business model. To fulfill this purpose, the research is designed as a
qualitative case study, with focus on how the focal company should organize to take on a
proactive approach to innovate their business model.
This thesis presents a process purposed to provide a structure for how a mature firm can
approach proactive business model innovation. The process comprises 4 phases Assessment,
Analysis, Alignment and Adaptability, including detailed sub-steps. The aim is to proactively
explore external sources of innovation, rather than awaiting triggers, hence spur ideation that
can enable break-outs from industry recipes.
Analyzing the process application at Parker Hannifin SCS, it is found that a formal process with
support and incentive to question habitual methods should be provided from the internal
organization. Furthermore, a cross-functional team outside of hierarchal structure can ease the
decision making and information flow, while creativity could benefit from a distinct mixture of
participants in terms of team composition, with both well experienced and new employed with
diverse backgrounds. Continually, the project team should be appointed so that competency
within each business model dimension is covered, concerning the total system of value creation,
proposition and capture. Still, it is essential that each member is open to challenge and adjust
accustomed approaches.
It is essential that SCS secure financial capacity to invest in the innovation process and to try
various business models. As the process circulate around collaborative business development, it
requires top management support for a culture and organizational mindset that is open to
collaborations. Further, to comprehend the necessity of such mindset in order to improve
probability of success with the possibility to achieve superior value creation through the value
chain, thus increase market share and strengthen competitive positioning towards competing
actors.},
publisher={Institutionen för teknikens ekonomi och organisation, Entrepreneurship and Strategy , Chalmers tekniska högskola},
place={Göteborg},
year={2016},
series={Master thesis. E - Department of Technology Management and Economics, Chalmers University of Technology, Göteborg, Sweden, no: E2016:095},
keywords={Business Model, Business Model Innovation, Proactive Business Model Innovation, Business Model Innovation Process, Open Innovation, Analogical Reasoning},
note={71},
}
RefWorks
RT Generic
SR Electronic
ID 245611
A1 Glansén, Elin
A1 Nielsen, Sofie
T1 Business Model Innovation in a Mature Industry - A Case Study at Parker Hannifin SCS
YR 2016
AB Changes in the environment, driven by globalization and technology development, give ground
to instability and uncertainty within industries. Consequently, stable business models are
challenged by disruption of previous industry boundaries and competition. While close
innovation become progressively ambiguous, firms grow further dependent on external sources
for innovation. Furthermore, translated to original equipment manufacturers, actors are
subjected to developments in technology, customer behavior and tough market sentiments. In
response to the changing dynamics, actors are found to invest in business model change to adapt
to the new environment. In turn, the pressure is transferred onto suppliers, where Parker
Hannifin SCS must engage in similar investments and align with prevailing changes, not to face
the risk of business model obsolesce or incompatibility with its customers. Yet, as the business
model is an interdependent system, an alteration in one dimension will require accordingly
adjustment in the remainder parts.
The aim of this thesis is to understand how a company within a mature industry proactively can
engage to innovate the business model. To fulfill this purpose, the research is designed as a
qualitative case study, with focus on how the focal company should organize to take on a
proactive approach to innovate their business model.
This thesis presents a process purposed to provide a structure for how a mature firm can
approach proactive business model innovation. The process comprises 4 phases Assessment,
Analysis, Alignment and Adaptability, including detailed sub-steps. The aim is to proactively
explore external sources of innovation, rather than awaiting triggers, hence spur ideation that
can enable break-outs from industry recipes.
Analyzing the process application at Parker Hannifin SCS, it is found that a formal process with
support and incentive to question habitual methods should be provided from the internal
organization. Furthermore, a cross-functional team outside of hierarchal structure can ease the
decision making and information flow, while creativity could benefit from a distinct mixture of
participants in terms of team composition, with both well experienced and new employed with
diverse backgrounds. Continually, the project team should be appointed so that competency
within each business model dimension is covered, concerning the total system of value creation,
proposition and capture. Still, it is essential that each member is open to challenge and adjust
accustomed approaches.
It is essential that SCS secure financial capacity to invest in the innovation process and to try
various business models. As the process circulate around collaborative business development, it
requires top management support for a culture and organizational mindset that is open to
collaborations. Further, to comprehend the necessity of such mindset in order to improve
probability of success with the possibility to achieve superior value creation through the value
chain, thus increase market share and strengthen competitive positioning towards competing
actors.
PB Institutionen för teknikens ekonomi och organisation, Entrepreneurship and Strategy , Chalmers tekniska högskola,PB Institutionen för teknikens ekonomi och organisation, Entrepreneurship and Strategy , Chalmers tekniska högskola,
T3 Master thesis. E - Department of Technology Management and Economics, Chalmers University of Technology, Göteborg, Sweden, no: E2016:095
LA eng
LK http://publications.lib.chalmers.se/records/fulltext/245611/245611.pdf
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