User experience (UX), a concept that represents an overall result of the interaction between a user and an IT artifact, has become a desirable service value ingredient in contemporary business models. The analysis of respective literature shows that the holistic and phenomenological UX concept still has not been embedded in the existing service design and business model methods. Therefore, the goal of this research is to propose a service design methodological framework enveloping a set of service design methods enriched with UX concept to enhance a value proposition in a business model. In the following paragraphs, the structure of this doctoral thesis will be presented by chapters depicting the research process and the results in brief. The first chapter presents introductory considerations of this research including an overview of the context, the purpose and focus of the study, its basic components regarding the methodology and the definition of the key concepts. The context of the study provides an overview of the emerging issues in contemporary business environment whereas services are filling with digital fabric more and more. In this context, the study problem is situated at the intersection of: the user experience as a part of overall customer experience bringing value to the customer, business model defining the value that should be co-created with the customer, and service design that provides methods to support design for experience. Following this introductory elaboration of the research topic, this chapter brings out the main research goal divided into six subgoals, three research questions and three research hypotheses. Afterwards the research methodology is presented in short describing the main steps and methods of the planned research process following the design science paradigm. The chapter ends with the definition of the main concepts of this research, limitations of the research and the tabular overview of the research structure. The second, third, fourth and fifth chapters are dealing with the theoretical grounding for the development of the resulting methodological framework as an interdisciplinary intersection of three distinct areas and underlying assumptions. In the second chapter a literature review of the area of business models is presented to identify a common ground for the interpretation of this blurring concept and to find a suitable model of the concept to be further developed for the implementation of the user experience concept as a value ingredient. As part of the literature review, the analysis of seven conceptual research frameworks in the area of business models spanning last twenty years of research shows the history of the heterogeneity of understandings V and the rarity of authors building on each other stemming mostly from different levels of conceptualization. As the main result of this chapter, explicit interpretation of the business model construct is defined for this study and the suitable model following this interpretation and the value creation perspective is found. The third chapter continues the theoretical grounding of the targeted methodological framework by investigating the customer value concept as the main link between the intersected areas of the study. The goal of this investigation is to find the appropriate way to conceptualize and model the experiential value as an element of the business model concept. The literature analysis focused on the customer value conceptualizations in the marketing discipline which best reflects the notion of the value in terms of customer desires and satisfaction that should be a part of the business model. The main contributions of the analysis include the identified characteristics, perspectives and propositions concerning the customer value concept that will be the basis for modelling and integrating the user experience, business model and service design in the following research steps. Since the focus of this research is the user experience as an ingredient of the customer value in the business model, in the fourth chapter an in-depth investigation of the concept of user experience (UX) is presented, in its areas of origin such as human-computer interaction and human-centered design. The investigation of the concept is made from the perspective of the previously identified customer value which brings a novel view in the literature that is needed for aligning design and business goals. The main finding of this chapter is the identification of general elements for the design of UX as a part of customer value and these are user, context, interaction, and IT artifact. The four elements of user experience are identified based on the analysis of eight most relevant conceptual frameworks of UX in the literature. Since these frameworks are extremely heterogenous and abstract, generating these four common elements is the most important contribution of this chapter to operationalization of the UX concept that will be used for structuring the design process in the final methodological framework. Apart from that, the UX concept, as the value for the customer, is demarcated as a holistic, phenomenological, inseparable whole which will constitute the basis for its representation in the form of the UX goal in the business model. The fifth chapter finishes theoretical grounding of this study by investigating the last respective area of research which is the service design. Since the main goal of this research is to propose a service design methodological framework enveloping a set of service design VI methods enriched with UX concept to enhance a value proposition in a business model, this chapter primarily deals with numerous service design methods. In that vein, around 200 methods have been reviewed by the title, and 29 have been analyzed in depth according to several criteria such as the purpose, design phase, concepts, format, type, and the main criteria of this analysis - elements of UX that the method is able to capture. This analysis resulted with the systematization of the service design methods according to UX elements which cannot be found in the existing literature. Following the investigation of the service design field, the rest of the chapter presents the elaboration for the integration of the service design and two other main areas of this research, business models and user experience, resulting with the final structure for developing the methodological framework. The sixth chapter extensively presents the overall methodology of this research with special attention to the empirical part of the research which is following afterwards and provides the rationale for the methodological choices. Therefore, it consists of a rationale for research design, research settings and sample, description of the procedures of the study including data collection and analysis methods, issues of trustworthiness and limitations. The basic characteristic of this research is qualitative approach which is suited to achieving a deep understanding of the social setting that is needed for the defined research problem. The overall methodological process follows the design science paradigm which is a suitable for creating novel artifacts in the form of a construct, a model, a method, or an instantiation. Since the aim of this research is to develop a new artifact in the form of a service design methodological framework, design science is recognized to be the best approach, as in many other similar works in the field of service design and information systems. The design science research was carried out following Design Science Research Methodology describing six steps: (1) Problem identification and motivation – includes references to previous chapters which thoroughly present literature reviews based on which the problem and motivation are explained, (2) Define the objectives for a solution – the basic structure of the methodological framework is presented with the specific requirements for developing its segments, (3) Design and development – based on the previously defined requirements and the investigation of underlying theoretical concepts, the development of the final artifact in the form of the methodological framework is presented, (4) Demonstration – procedures of the conducted multiple case study as the main method for the demonstration and evaluation of the developed artifact are presented across five phases including data collection methods such as participant observations and semi-structured interviews, (5) Evaluation – three strategies for evaluation of the artifact are presented, namely, VII development process evaluation, demonstration outcomes evaluation and new method evaluation based on the criteria from the relevant literature, (6) Communication – presents the intended and so far realized knowledge dissemination activities. The seventh chapter reports the main research findings including the presentation of the collected and analyzed data. The findings are organized according to the main design science phases presented in the previous chapter on the methodology – artifact design, demonstration, and evaluation. The first and main result of this study is the service design methodological framework for developing a business model enriched with the user experience concept which solves the research problem of modelling user experience as an improvement of the value proposition in the business model in practice. The methodological framework consists of three segments needed to accomplish its purpose: (1) the adapted business model canvas for business model representation, (2) the user experience model on two levels – the goal level and the design level, and (3) service design segment comprising four adapted design methods for every element of the user experience phenomenon. The second part of the findings comprises the results of the workshops that were held as a part of case studies in the demonstration and evaluation phase in which the developed artifact was used in real contexts. The results are presented in the form of individual narrative case study reports that provide thick descriptions, and, also, in the form of cross study analysis to search for patterns and generalities. The third part of the findings presents the results of the empirical evaluation which was conducted through semi-structured interviews with the workshop participants from the case studies. The results are presented in the form of conceptual matrices providing analytical framework for drawing conclusions on the feasibility, usability, and utility of the used framework. The eight chapter finalizes this research by presenting concluding statements in the light of their scientific and societal contributions. The main scientific contribution lies beneath the developed methodological framework in integrating at least three distinct fields through conceptualization of user experience as experiential, multidimensional, relativistic, and dynamic value for the customer, business model as the platform for implementing the user experience in the value proposition, and the service design process and methods as activities for capturing different perspectives of user experience. The societal and managerial contribution lies in providing organizations knowledge and tools to conduct service design and focus on innovative ideas based on the value in experience. This chapter also provides the discussion on the limitations of the study followed by the implications for future research.