Business Models

Delivering industrial Product-Service Systems (IPSS) is a trend for companies in the german mechanical and plant engineering industry. IPSS are holistic problem solutions including an integrative combination of a physical core product and related services. Furthermore, IPSS are offered in customised business models. Due to the fourth industrial revolution, IPSS are transformed towards smart IPSS. Here, digital business models are necessary to take advantage of all opportunities belonging to smart IPSS. Therefore, a systematic analysis of digital business models for smart IPSS is presented.

An investigation of Industry 4.0 project examples of selected companies with a focus on possible resulting business model innovations shows that these innovations can certainly be triggered by Industry 4.0 projects. How-ever, the results of our investigation also show that the share of business model innovations with 22% out of the 158 selected companies is, however, at a rather low range. Disruptive business model innovations are mainly found in companies of the manufacturing industry. Their focus is no longer only on the production or processing of products, but also on a clear added value for the customer. In this article, these aspects are further elaborated and selected study results are presented.

Technological changes related to Industry 4.0 generate new potentials. Hence, it is important to understand which dimensions of a business model to adapt. Industry 4.0 technologies enable a company to offer new products, new services or to achieve efficiency improvements. The Industry 4.0 business model decomposition allows visualising which goal the initiative has, what the value offering is and which processes, technologies and capabilities are needed. As connectivity is a key dimension of Industry 4.0, technologies and systems are needed to connect internal and external processes.

Digital transformation leaves only a few aspects of the relationship between customers and companies unaffected. This also applies to payment flows that stream between parties. Goods and services, which are fundamentally changing under the influence of the new technical possibilities, are also sold and bought differently. For the systematic search of new possibilities to monetarise own offers, the so-called Objects of Revenue are suitable. These are objects within the company, which are directly linked with or are able to be linked to payment flows.

The flexible licensing of machine features is a major enabler of new business models. New finance and leasing models can be generated by disruptive machine-as-a-service models with pay-per-use functionality. The more flexible the licensing becomes, the more essential is the business process automation of the licensing management system. To choose build or buy in such environments is not a question anymore. Vendors of professional license management platform are the right eco system partners for machine builders.

Intensified networking and digitalization of systems affect an increasing number of sectors. At the same time a great variety of different concepts, ideas, expectations as well as fears have emerged around Industry 4.0. A look into the newspapers is enough to understand that the profound connection of critical structures does also hold profound dangers. For the future it is crucial to consider a way of using the new mass of data and information to protect these structures. Evaluating big data and transforming it into smart data with support of Artificial Intelligence will be a significant security factor in the future.

The digital transformation of business models plays a special role, because business models contain different elements, which can be digitally transformed. The complexity of production and logistics systems generates the demand for robust and error-resistant control options in the pursuit of corporate objectives. The control of production and logistics systems, especially, is often inadequately managed with methods of exact mathematical specifications alone. The objective of the following contribution is to define introduce a roadmap, including some examples for some instruments.

The research project “eStep Mittelstand - modular solutions for SME to strengthen the independent integration of ebusiness standards in complex supply chain processes” has developed solutions to build up the usage of ebusiness standards in business processes of SME. The methods and models enable SME to run successful ebusiness projects despite high complexity. The transformation to standardized, electronic business processes will be facilitated by the self assessment tool (SAT), the decision tree (EB) and the eStep Mittelstand Middleware (eMiMi). A DIN SPEC, developed together with the Deutschen Institut für Normung (DIN) e. V., provides a guideline to enlarge the functionalities of SAT and EB.

The Industrial Data Space enables business based on networked data and data sovereignty at the same time. The technological solution and the certification scheme of the Industrial Data Space ensures secure access to data which companies usually do not dare to share today. This gives new opportunities and provides new data-driven business models. The Industrial Data Space® initiative consists of a research project owned by the Fraunhofer-Gesellschaft and the Industrial Date Space Association.

Digitization opens extensive opportunities to gather real time information, exchange them and use them for a variety of different purposes. In industry, the related developments are referred to as the transition to Industry 4.0. They relate to the workplace design as well as to the alignment of business strategies and the underlying business models.