Systematic Steps Towards Concept Design of Pay-per-X Business Models: An Exploratory Research

During the last decade, equipment manufacturing companies (EMIs) have increasingly understood the unique competitive advantages offered by Payper-X (PPX) business models (BMs). Many such EMI companies seem ready for the transition towards PPX BMs. However, they are not aware of the needed systematic steps that will help them in the concept design of PPX models. There are currently no available systematic PPX concept design processes and related steps in literature that can support EMI companies in identifying their relevant PPX BM options. Therefore, we make use of qualitative case study research method and identify such overall process and major steps with the help of interviews and workshops with a company that has successfully designed and identified their PPX models. Additionally, these design steps are validated with the help of 3 companies that plan to shift towards offering PPX models.