Functional Products: Business Model Elements

The paper explores business model elements that are vital when offering customers Functional Products. Based on in-depth empirical studies at four manufacturing corporations, a number of Functional Product business model elements are identified and discussed. The identified business model elements for Functional Products are found to have special requirements as compared to well-established generic business models. The results, including both academic and industrial contributions, can be used by corporations as input when modeling Functional Product business models on their own or together with customers, business partners or suppliers. Finally, factors and challenges that need to be addressed when modelling Functional Product business in corporations are further discussed.