SERVICE-ORIENTED BUSINESS MODEL AS A FACTOR OF STRATEGIC MANAGEMENT

Abstract

In the contemporary context, driven by an evolution grounded on the theory of knowledge, the concepts of systematization and innovation, business modeling exerts a more substantial influence on the realization of strategic management for business organizations as well as the formulation of completely new strategies for advancing competitiveness. Last decades the new trend has been growing, where competitive advantage can be shaped through out unique business models for each value chain business organization is capable to create and effectively maintain. On the other hand, paradigm of "design thinking" and the impact of digital technologies stimulate the emergence of service orientation or the service dominance, defining its role in securing competitive advantages through innovative approaches and flexibility. This allows the creation of fundamentally new benefits for business organizations in areas of flexible consumption models, quality, customization, and implementation of environmentally sustainable solutions. Moreover, it lays the foundation for the dominance of the service dominant, signifying the presence of a service-oriented business model and the versatility of such business modeling as a factor of strategic management, leading to the creation of new competitive advantages or diversification strategies.

It is also important to underscore the fact that despite the potential revenues from various types of services supporting products, advancing its functionality and expanding of usage models to significantly surpass the revenues from “just product” sales, classic production-based business organizations are presently transitioning slowly to service-oriented business models. This transition follows more an evolutionary path instead of revolutionary transformation, gradually incorporating different types of services around their products and implementing digital technologies.