Boosting Outcome-Based Business Models – The Role of the Consulting Industry : A case study at Capgemini Invent

Enabled by new technologies, firms are starting to shift from selling products to selling outcome-based services. In an outcome-based business model, providers deliver outcomes and work in close cooperation with end-customers to create superior value, more efficient and more sustainable solutions. Research has explored the boundaries to the adoption of outcome-based business models, but does not provide an approach to overcome these boundaries. To address this research gap, this degree project examines how the consulting industry can boost outcome-based business models by facilitating their adoption. To explore how consultancies can profit from projects related to outcome-based business models by generating valuable services to clients, a representative case study at Capgemini Invent, a large strategy and technology consultancy, was conducted. Semi-structured interviews with twelve experienced consultants from different backgrounds lead to the finding, that the shift of industrial firms towards selling outcome- based services, provides large potential for consultancies as they can sell a full range of services related to generating an understanding for the value created by outcome-based business models, supporting the value definition and value proposition within such a business model, and delivering alternative services in the post-implementation-phase of an outcome-based business model. I also find that consultancies have the capabilities and, due to the existent potential, motivation to offer services to facilitate the adoption of outcome-based business models but are nevertheless focused on generating short-term profits rather than actively trying to promote solutions because they provide social value. This project contributes to literature, by providing a perspective on how the development of outcome-based business models can be facilitated, which in turn is likely to lead to increased sustainability and social value. It also points out that consultancies – as knowledgeable leaders - have a major responsibility to take a lead on developing sustainable business practices to help solve some of our generations most difficult challenges. Let us hope they take on this responsibility.