Page - 194 - in Digital Entrepreneurship - Impact on Business and Society

the same external environment, time-varying corporate effects for managerial decisions are statistically significant. By extending this concept to digital com- mitment, it can be said that faced with digital disruptions, the commitment of managers and allocating resources will have a significant impact on corporate digital entrepreneurship.Digital commitment from the top, especially theCEOand CDO, should enable commitment to transformation initiatives by digital tech- nologies, and they should allocate the necessary resources to achieve that; other- wise, the transformation will be sporadic (Bendor-Samuel 2017). Thus, it is proposed that digital commitment positively influences the relationship between digital technologies and corporate digital entrepreneurship. 4 Examples fromPractice/Case Studies fromPractice 4.1 Rolls Royce—Power by theHour Rolls Royce’s civil aerospace business is the leading manufacturer of aircraft engines for commercial aircraft, regional jets and thebusiness aviationmarket. The company’s aircraft business has a 35%market share and revenue of 7.3BEuro in 2018. The company transformed its businessmodel by changing a product-centric businessmodel toanoutcome-centricmodel,wherecustomerspayby theoperating hoursof theengine.15Previously, acustomerused topayaone-off largeamount for the engine and bought a service contract for ongoingmaintenance. In the engine value-based pricing model, the payment is based on flight performance hours achievedwith the engine andcustomers donot have tobuy the engines andpay the maintenance costs, thus allowing low-cost airlines to sign contracts with Rolls Royce. This innovative business model has increased its customer base and pro- vides better benefits for customers as they only pay for engine performance. Rolls Royce started their “Total Care” business model in themid-1990s when thecompany introducedanewventure,“TotalCareTerm”,wherecustomers signed up for coverage over a fixed fee per engine flight hours. The fees were charged based on the expected number of shop visits and related costs divided by the expected number offlight hours. Though therewere uncertainties about the engine conditions at the endof the contract, customers chose this term for the lowest cost. In 2007, Rolls Royce enhanced the existing maintenance service venture and introduced “Total Life”. As the company gained more and more experience in servicing aircraft, it introduced anewservice businessmodel to increase itsmarket share in the aircraftmaintenance business. In the “Total Life”model, Rolls Royce provides aircraftmaintenance for life (as longas the aircraft is inoperation) and the flyinghours are considered for per-hour cost; the service canbe transferred toother aircraft operators in case of any changes in ownership. In 2015, Rolls Royce introduced the “Total Care Flex” business model, where a customer can pay a 15https://www.rolls-royce.com/media/our-stories/discover/2017/totalcare.aspx. Corporate Digital Entrepreneurship: Leveraging Industrial… 199