hybrid value creation

An essential component of digital value creation is the innovation of digitally networked business models. By networking different actors and service bundles, new customer value can be created. However, this networking leads to increased complexity, which makes it difficult for tradition- al industrial companies in particular to exploit these opportunities in a meaningful way. For this reason, a system is presented that reduces com- plexity through modelling and makes it possible to compare the effort and benefits of business model ideas at an early stage.

Integrating products and services to customized hybrid products can help firms to differentiate from their competitors. The essential value proposition of such bundled offerings can comprise usage-based selling (e.g. of machines) combined with guaranteed availability or the operation of customers’ complex production factors such as a complete assembly line. Operational efficiency is no longer sufficient for achieving long term success with hybrid products. Rather it is the way of interaction with customers which provides new opportunities for value creation. In the context of hybrid products the way of creating value for customers changes from a purely transactional view to a relational process. Accordingly, this paper addresses this change from a process-oriented perspective.

Enterprises increasingly seek to differentiate from competitors by offering complete solutions in form of aligned goods and services. Effectively and efficiently offering such integrated solutions (also referred to as hybrid value bundles) requires an integration of production’s and service unit’s data and processes. Supporting the required data exchanges and providing novel functionality opens up new vistas for vendors of ERP systems.