The business model innovation and path choice of developing service-embedded manufacturing paradigm

As an innovative manufacturing paradigm and industrial conformation, the appearance and development of service-embedded manufacturing paradigm changed the competitive landscape of each industry. The manufacturing companies are forced to make business model innovation in order to maintain sustaining competitive advantage. Referencing the classification of business model innovation strategy made by IBM, we proposed a framework and best practices about the business model innovation of developing service-embedded manufacturing paradigm after considering the characteristics of service-embedded manufacturing paradigm and the reality of manufacturing companies. We analyzed the path choices of developing service-embedded manufacturing paradigm according to an enterprise competitive strength and target customer. Finally, the problems that need to be solved urgently were raised from the perspectives of service value proposition, operating model and pricing strategy.