Development of Diagnostic Method for Servitization on Small Businesses:Assessment of Revenue Model with Subscription

“Servitization” is progressing not only in the manufacturing industry but also in the retail and service industries. However, “servitization” in SMEs has been delayed. The reason is that the quality of conduct of the method of servitization is low. Now is the time to build a methodology for servitiz...

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Bibliographic Details
Published inJournal of Japan Management Diagnosis Association Vol. 21; pp. 7 - 10
Main Authors Sakai, Osamu, Namiki, Yuji
Format Journal Article
LanguageJapanese
Published Japan Management Diagnosis Association 2021
Subjects
diagnosis methods
method of servitization
recurring
risk management
servitization
subscription
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Summary:“Servitization” is progressing not only in the manufacturing industry but also in the retail and service industries. However, “servitization” in SMEs has been delayed. The reason is that the quality of conduct of the method of servitization is low. Now is the time to build a methodology for servitization in SMEs. It is required that a concrete method be examined. The purpose of this research is to clarify management issues during servitization and to sort out improvement points to overcome those issues. In this paper, we examined the subscription revenue model that supports the business model of continuous transactions (recurring business). Specifically, we presented a mathematical model for generating profits.
ISSN:1882-4544
DOI:10.11287/jmda.21.7