Four Scenarios for Future of Outcome-Based Contracts

Research output: Chapter in Book/Report/Conference proceedingConference contributionScientificpeer-review

Abstract

This paper identifies and analyzes future scenarios for Outcome-Based Contracts (OBC) in the context of industrial production equipment. Given the extended life cycle of both the equipment and OBCs, external and internal changes can significantly affect their viability and profitability. The aim of this study is to provide insights into the future landscape of OBCs in this context and offer guidance on how to make OBCs resilient in a changing world. This paper uses data from 28 industry practitioners and academics from a systematic Delphi process, focusing on the impacts of various business environment changes on OBCs. This paper identifies a range of potential future scenarios that could shape the evolution of OBCs. The scenarios encompass diverse factors, including market and societal changes, regulatory shifts, technological advancements, changes in industrial trends and strategies, as well as changes in sustainability expectations. Each scenario is analyzed to understand its implications on the business model as well as contractual arrangements. The findings reveal a variety of potential future scenarios for OBCs. The different scenarios indicate a need for different OBCs to be resilient in a changing world. By presenting these scenarios, this research provides industrial equipment manufacturers with insights for anticipating and adapting to potential changes in their contractual agreements and business models. This analysis contributes to a broader understanding of future OBC challenges and opportunities, helping manufacturers design and implement resilient OBC business models.
Original languageEnglish
Title of host publicationSmart Services Summit
Subtitle of host publicationBuilding Resilience in a Changing World
EditorsShaun West , Jürg Meierhofer, Thierry Buecheler
PublisherSpringer
Pages133-149
ISBN (Electronic)978-3-031-60313-6
ISBN (Print)978-3-031-60312-9
DOIs
Publication statusPublished - 2024
Publication typeA4 Article in conference proceedings
EventSmart Services Summit - Zurich, Switzerland
Duration: 27 Oct 202327 Oct 2023

Publication series

NameProgress in IS
PublisherSpringer
ISSN (Print)2196-8705
ISSN (Electronic)2196-8713

Conference

ConferenceSmart Services Summit
Country/TerritorySwitzerland
CityZurich
Period27/10/2327/10/23

Publication forum classification

  • Publication forum level 2

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