The economy is going through a fundamental product-to-service transition - here are some insights and references

I work on the topic of Value-Driven Service Innovation (VDSI). Here are some important insights. The first line of each paragraph was presented in a twitter feed at the date mentioned.

There is a fundamental shift in the economy from one based on goods to one based on services (Yana et.al. 2010). (my twitter feed 4 Oct)

About 75 percent of employment and value creation in the Western economies come from services. The transformation from a goods-based economy to a services-based economy suggests that firms need to redirect the production and marketing strategy that they have adopted for manufactured goods. We see he same transformation in other large countries, like the BRIC-countries.

The fundamental shift in the economy creates a need for new theories (Yana et.al. 2010). (my twitter feed 9 Oct).

A fundamental shift in worldview from goods-dominant logic to service-dominant logic has been proposed to match the analogous shift in the economy.

The service-dominant logic has emerged as the most recent scholarly marketing debate (Kowalkowski 2010). (my twitter feed Oct 10). In parallel with the product-to-service transition in the manufacturing industries, service-dominant logic has emerged as the most recent scholarly marketing debate. The three objectives of this work are:
(1) to delineate the distinct differences between a product-to-service transition and a transition from goods-dominant to a service-dominant logic,
(2) to discuss what these transitions mean for industry and academia, and
(3) to suggest a revised definition of industrial product/service systems more in line with a S-D logic. This logic implies a reframing of the purpose of the firm and its role in value co-creation.

A transition to service-dominant logic implies much more than an increased emphasis on services; it implies a reframing of the purpose of the firm and its role in value co-creation (Kowalkowski 2010) ((twitterfeed 11 Oct)

The business model concept is about producing a value proposition (Demil 2010).

Companies need to develop a service-based business model (Kindström 2010).

Service innovation involves the fulfillment of value propositions related to the provision and consumption of services (ECRA 2011).

Commercialization is done through business model development (Chesbrough 2010).

A business model solution framework consists both of a solution process and three groups of cross-functionality issues (commercialization, industrialization, and solution platform). Storbacka 2011).

Business models act as three forms of model, and they are useful (Baden-Fuller 2010).

The business model concept offers strategists a fresh way to consider their option in uncertain, fast-moving and unpredictable environments (McGrath 2010).

A business model is a reflection of the firm’s realized strategy (Casadesus-Masanell 2010).

To refer to someone as innovative generally has positive connotations that imply being ahead of the times, visionary, or forward-looking (Rodriguez 2010).

-- more insight on service innovation, business models and value creation to be added soon.