Data-driven business model development – insights from the facility management industry

Abstract

Purpose One of the leading factors that shape product and service delivery are data collected in databases and other repositories maintained by companies. The transformation of such data into knowledge and wisdom may constitute a new source of income. This paper aims to explore how small/medium-sized enterprises (SMEs) advance their business models (BMs) around data to handle data-driven products and how this contributes to their innovativeness and performance. Design/methodology/approach To investigate the phenomenon, the as-is BM of a multinational SME was mapped and its limitations were revealed through a qualitative study. The BM canvas was used. Then the data-driven approach was innovated within the facility management (FM) industry, where a high volume of operational and sensor-based data being collected creates added value in terms of new data-based products. Findings A data-driven business model (DDBM) blueprint for the FM industry that supports the need to complement service-driven operations with the data-driven approach is delivered. Enhanced BM equips a facility manager with additional managerial tools that enable decreasing property utilization costs and opens up new opportunities for generating revenue. This paper drafts the way to evolve from service to data-driven business and point out the attitudes that managers should adopt to promote and implement DDBM. Practical implications The DDBM constitutes a guideline that supports FM organizations in focusing their activities and resources on generating business value from data and monetizing data-driven products. Originality/value The research expands knowledge regarding BMs and their evolution. The gap regarding the DDBM innovation within the FM industry is filled.