2023-04-132023-04-13https://www.alexandria.unisg.ch/handle/20.500.14171/57679Services are getting more important than ever for manufacturing companies. Their trend to increasingly provide industrial services is called servitization. With the advent of digital technologies enabling the collection, transmission and analysis of large amounts of data, both trends merge into digital servitization. This results in a surge of new smart services that build on elements such as product monitoring, analytics or remote control. Value-based approaches seem highly relevant to market and sell smart services for two main reasons. First, as these services are delivered digitally and often highly innovative, cost- or competition-based pricing approaches are ill-suited. Second, as smart services intend to provide superior value, VBMS has the potential to generate higher revenue. Practical implementation and research on VBMS is still in its infancy. Our literature review yielded scattered approaches to VBMS that often disregard contingency factors such as existing prices. These approaches are mostly too simple in their calculation or too complex in their visualization. Also, we did not find specific applications of VBMS for smart services. This project aims at closing this gap by developing a method for VBMS of smart services. We partnered with four companies producing in Switzerland and the world's leading pricing consulting firm. Building on requirements from these companies, we will develop a holistic VBMS method and pilot it in the four manufacturing companies. The method uses real customer data to derive a realistic and quantified value proposition for smart services. Data analytics and software implementation is supported by HS Rapperswil. The project outcome is a scientifically developed and tested VBMS tool that can be used for selling smart services and pricing/ sales trainings. Ultimately, the project aims at driving service revenue in manufacturing companies in Switzerland, thereby helping to overcome the “Digitalization Paradox”.applied research project