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Method for a qualitative cost benefit evaluation of process standardisation for industrial services
(2018)
Industrial service providers deliver complex technical services (e.g. inspection, maintenance, repair, improvement, installation and turnarounds) for a wide range of technical assets in process industries such as the chemical industry. Due to the versatility of assets and industries, there is also a variety of the corresponding service offerings. The demand for a high service quality and the general cost pressure leads to the need of a more efficient and standardized design of the service processes. However, cost-benefit ratio related decisions regarding the questions where and how service processes should be standardized entail great challenges for small and medium-sized enterprises. This is because there is often a lack of understanding of cost savings through process standardization, which is caused by a lack of understanding of the correlations between process characteristics and process target values. Because of this, the goal of this paper is to develop a method for a quantitative evaluation of the cost-benefit ratio of process standardization measures. Within this method, the relevant service performance processes are selected first. Next, the process data will be recorded with the help of questionnaires. These are then analyzed by looking for correlations between the process characteristics and the process target values. Afterwards standardization measures are derived on the basis of these findings in order to improve deficit characteristics and thus target values. Finally, the method´s practical applicability is tested and validated by applying it to an industrial service in the chemical industry.
Smart-Farming-World
(2018)
In agriculture, data can already be generated from numerous machines and systems. Different manufacturers and value-added steps offer their own solutions for this. However, there is as yet no comprehensive platform in which data can be processed across all value-added steps. This is dealt with in the research project smart farming by presenting a value chain comprehensive use case for a digital potato.
Subscription business models provide an important component for monetizing the potential of Industrie 4.0. Subscription business is based on a long-term and participative business relationship between customer and provider. However, only digitalization offers the necessary framework conditions to realize the characteristic recurring and performance-based billing, and to ensure the necessary transparency about the usage phase of products as well as continuous performance improvements in the customer process. Against this background, companies must not only recognize the much-cited potential that lies in the total dedication to the success of individual subscription customers. Rather, the central obstacles must be addressed, examined, and subsequently overcome in a targeted manner in order to successfully establish subscription business models and place them on the market.
A subscription business model - that sounds like significant economic advantages. Therefore, the question arises: Why haven't all manufacturing companies established this type of participative business model yet?
The answer: The development and implementation of subscription business models go hand in hand with central challenges that companies have to overcome in the course of a business model transformation. This expert paper helps with this.
Development of a platform business model for co-creation ecosystems for sustainable furniture
(2023)
Existing design platforms with multi-dimensional value chains currently have deficits in terms of their business models, resulting in insufficient attention to sustainability goals and individual requirements for products of these platforms. Co-creation approaches, such as the Do-It-Together (DIT) approach for furniture, involve customers and manufacturers as equal partners in the design and production process. This allows customers to have more influence on the sustainability and individualization of products. The existing literature addresses sustainability-oriented design principles for platform business models, but concrete platform business models for multidimensional DIT cocreation of furniture are still missing. Therefore, the objective of this paper is to develop a business model for a DIT co-creation platform for the furniture industry based on a four-step business model innovation framework. This method will then be applied to a specific project scenario to derive a project-specific DIT co-creation business model. This generates knowledge about the collaborative manufacture of sustainable and customized furniture and contributes to the cross-sectoral transfer of platform business models for the development of sustainable products.
Pricing for Smart-Product-Service-Systems in Subscription Business Models for Production Industries
(2021)
In the production industry, subscription business models have the potential to create long-term relationships where a supplier provides a continuous value-oriented service to a customer based on digitalisation. Monetising this increase in value through pricing represents a central challenge for suppliers in subscription business. Unlike the current dominant transactional business, the focus of pricing is on the value-in-use of the customer (e.g. on the increase in output for the customer). In this regard, there is so far no pricing approach for practice that allows the linking of the performance data of the customer with the periodically charged price. However, in subscription businesses, such an approach is required to create win-win situations for the customer and supplier through continuous performance improvement. Therefore, this paper develops a novel process model for pricing of smart-product-service-systems in subscription business for production industries. This process can serve as basis for suppliers of subscriptions in the production industry to align pricing with the created value-in-use. In the long term, this allows companies to systematically develop their pricing to monetise the potential of digitalisation.
The do-it-yourself mentality is particularly widespread in the furniture sector. Homemade furniture is very popular. The individualisation of furniture can be observed in internet forums, such as the online platform Pinterest. These creative ideas of potential customers show a need for individualized sustainable pieces of furniture. The current production structures, however, do not allow individual production according to the end customer's specifications. In addition, information logistics faces a major challenge: making the creative ideas of end consumers available to producers in parametric form. Topics such as customer requirements in relation to sustainable production, material specifications, industrial property rights, fair production conditions and traceability are the focus of this data interchange. An open and innovative European furniture ecosystem must be created to connect all stakeholders in the production process. This is made possible by a platform that channels the creativity of consumers and makes it designable and producible through the professional skills of designers. This requires the involvement of manufacturing specialists who can produce personalised products through sustainable intelligent production technologies. An exchange of information must also take place securely and quickly in order to protect the personal rights of the sources of ideas. This is being developed in the EU research project INEDIT - Open Innovation Ecosystem for do-it-together process. By connecting many different stakeholders along the entire value creation process, a change towards efficient collaborative collaboration is achieved. This paper presents a project insight for the development of an international co-creation platform by presenting the problem and linking it to a potential solution.
This chapter addresses the market launch and sales of smart services. It opens with an introduction of the new challenges that the market launch of smart services creates for companies. Then follows the discussion of a four-phase approach to the market launch of smart services. Subsequently, successful practices are presented for this approach along eight design fields of the market launch. [https://link.springer.com/chapter/10.1007/978-3-030-58182-4_8]
This chapter presents key challenges of digital pricing: selling value propositions, data-driven quantification of value, the design of value-driven pricing models, and the definition of subscription-based price metrics. To structure the pricing for smart-product-service offerings promisingly, a framework with four specific elements has been developed. To address the value propositions properly, this chapter presents four archetypes for offering smart-product-service systems. The chapter concludes by presenting an approach to quantify customer value for digital products and services.