New Paradigm for Business Model Design and Innovation: An Insight of Product Lifetime Value Based on Electric Vehicle

¹ Liuzhou Vocational & Technical College, China
² Universiti Pendidikan Sultan Idris, Malaysia
³ Guangxi University of Science and Technology, China
⁴ Universiti Putra Malaysia, Malaysia

^* Corresponding author’s e-mail: rajanazim@fpe.upsi.edu.my

Abstract

The business model is an effective and well-structured management tool that helps organizations acquire and hold onto a competitive edge over their competitors. This paper proposes a framework called “The Product Lifetime Value Business Model” for business model design and innovation of electric vehicle company. The framework consists of four layers, the innermost layer represents the business model, followed by the Product Lifetime Value layer and 6V model, the outermost layer comprises 17 additional dimensions that provide a more detailed and in-depth analysis. The concept of Product Lifetime Value is proposed and can be categorized into six distinct stages: planning, production, delivery, revenue generation, application, and recycling in this paper. In addition, a "6V" model is also proposed based on electric vehicle industry which contains value proposition, value creation, value delivery, value capture, value of after-sales services, and value of residual.