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To monetize the potential of digitalization in times of saturated markets, increased machinery and plant engineering companies are starting to transform the transaction-based business model into a customer- and service-oriented subscription business. Even though subscription offerings can create win-win situations for providers and customers, companies encounter significant difficulties in acquiring customers for this innovative business model. Historically linear acquisition processes focused on transactional product sales impede success. To identify key challenges and targeted coping strategies for customer acquisition we conducted in-depth interviews with 18 subscription managers and sales representatives from seven machinery and plant engineering case studies. In our research we uncovered four challenge dimensions: (1) lack of motivation, (2) missing skills and competences, (3) insufficient customer confidence and (4) transaction-oriented sales approach. Beyond that we derived four appropriate coping strategies (1) steering mechanisms, (2) human resource management, (3) trust building instruments and (4) systematic methodology to address them. These insights highlight the key challenges at the management level for customer acquisition that companies face when trying to initiate and sustain the transition from a purely transactional product and service business to subscription-oriented growth. Furthermore, they provide guidance how to cope with these challenges.
Industry 4.0 and Smart Maintenance represent a great opportunity to make manufacturing and maintenance more effective, safer, and reliable. However, they also represent massive change and corresponding challenges for industrial companies, as many different options and starting points have to be weighed and the individual right paths for achieving Smart Maintenance need to be identified. In our paper, we describe our approach to evaluating maintenance organizations in a case study for the oil and gas industry, developing a shared vision for the future, and deriving economical and effective measures. We will demonstrate our approach, by showcasing a specific example from the oil and gas industry, where a need for action on HSE-relevant critical flanges in the company's piping systems was identified. We describe the steps, that were taken to identify the need for action, the specifications of the project and the criticality analysis of the piping system. This resulted in the derivation of a digitalization measure for critical flanges, which was first commercially analyzed and then the flanges were equipped with a continuous monitoring solution. Finally, a conclusion is drawn on the performed procedure and the achieved improvements.
Monetizing Industry 4.0: Design Principles for Subscription Business in the Manufacturing Industry
(2019)
Subscription business models have a major role for monetizing products and services for manufacturing companies in the age of Industry 4.0. As the manufacturing industry has difficulties generating revenues through digitalization, the implementation of innovative business models are essential to remain successful. Physical assets are often capital-intensive and require a more complex manufacturing process than subscription business models. Moreover, subscription models can focus on the individual customer benefit and a consistent service transformation, constituting a unique selling proposition and a competitive advantage. Hence, the following paper provides a management model that enables manufacturing companies to successfully realize the transformation towards a subscription business model. The management model presents four major fields of action, each matched with one design principle that must be considered when dealing with subscription models in the manufacturing industry. These principles were determined by an in-depth case study analysis among various manufacturing companies. Opportunities, challenges and recommendations for action were then systematically derived and integrated into the management model.
[Der Sammelband] Widmet sich den in Wissenschaft und Praxis aktuell intensiv diskutierten Fragestellungen zu Smart Services. Befasst sich mit Geschäftsmodellen, Erlösmodellen und Kooperationsmodellen von Smart Services. Geht auf branchenspezifischen Besonderheiten von Smart Services ein. (link.springer.com)
Künstliche Intelligenz (KI) hat sich über die letzten Jahre stetig zu einem Thema mit strategischer Priorität für Unternehmen entwickelt. Das zeigt sich nicht zuletzt in der gesteigerten Investitionsbereitschaft deutscher Unternehmen in KI-Projekte. Wirtschaftliche Akteure haben erkannt, dass durch eine sinnvolle Nutzung von KI-Technologien Wettbewerbsvorteile erzielt werden können. Die vorliegende Studie legt das Augenmerk auf den industriellen Einsatz einer KI-Technologie, die bereits heute von vielen Unternehmen erfolgreich genutzt wird: Die natürliche Sprachverarbeitung (engl. Natural Language Processing, kurz NLP). Die wirtschaftlichen Potenziale der Technologie liegen dabei in ihrer Fähigkeit, betriebliche Abläufe zu automatisieren und die Schnittstelle zwischen Mensch und Maschine zu verbessern und zu vereinfachen. Ziel der Studie ist es, die Potenziale der NLP-Technologie für Unternehmen nutzbar zu machen, indem konkrete Anwendungsfälle und allgemeine Handlungsempfehlungen sowie Nutzen und Risiken aufgezeigt werden.
Through data-based insights into customer behavior, products and service offers can be improved. For manufacturing companies, smart product-service systems (SPSS) offer the possibility to collect customer data during the usage phase of the product. As the focus on customer analytics is too often on sales and marketing, SPSS are overlooked as a source of customer data. However, manufacturing companies need to integrate data from all interactions with their customers along the complete customer journey to achieve a holistic data-based view of the customers. To identify these interactions and the customer data derived from them, the concept of a digital shadow will be applied to the customer journey. The projected results for the presented work in progress are a reference process model for the customer journey in manufacturing and a data model of the customer data created along this process.
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.
Prinzipien zur erfolgreichen Umsetzung von KI-Geschäftsmodellinnovationen
In Zeiten des zunehmenden globalen Wettbewerbs und hoch vernetzter Wertschöpfungsketten entwickelt sich Künstliche Intelligenz zu einem immer wichtiger werdenden Wettbewerbsfaktor für Unternehmen am Wirtschaftsstandort Deutschland. Durch den Einsatz von KI-Verfahren können nicht nur interne Geschäftsprozesse kostensenkend optimiert, sondern auch neue, digitale Geschäftsfelder und -modelle erschlossen werden. Es lassen sich zum einen Trends identifizieren, denen der Einsatz von KI in deutschen Unternehmen folgt. Zum anderen zeigt sich, dass sich KI unterschiedlich stark auf verschiedene Dimensionen innovativer Geschäftsmodelle auswirkt. Insgesamt lassen sich so Prinzipien ableiten, die die erfolgreiche Umsetzung von KI-Geschäftsmodellinnovationen beschreiben.
Neue Technologie- und Anwendungstrends kennzeichnen KI-Nutzung
Die tatsächliche KI-Landschaft in den Wertschöpfungsketten von KI-nutzenden Unternehmen ist durch Trends gekennzeichnet. Diese lassen sich in Technologie- und Anwendungstrends unterteilen. Experteninterviews zeigen beispielsweise, dass KI-Anwendungen bevorzugt auf Cloud-Infrastrukturen entwickelt und bereitgestellt werden. Das wiederum rückt die Frage nach der Wahrung der Datensouveränität in den Vordergrund. Anwendung findet KI tendenziell zur Prognose und Überwachung.
Sechs Prinzipien beeinflussen die erfolgreiche Umsetzung von KI-Geschäftsmodellinnovationen
Fallstudien über ein breites Spektrum der deutschen Wirtschaft beleuchten, welche Aspekte eines KI-basierten Geschäftsmodells den größten Effekt auf das Unternehmen haben. Hier lässt sich ein besonders hoher Einfluss von KI auf das Nutzenversprechen neuartiger, digitaler Leistungen der Unternehmen an die Kundinnen und Kunden feststellen. So lassen sich sechs Erfolgsprinzipien zur erfolgreichen Implementierung von KI-Technologien identifizieren, um die wirtschaftliche Nutzung von KI für Unternehmen in Deutschland im globalen Wettbewerb weiter zu steigern. So empfiehlt es sich zum Beispiel – neben der Auswahl des richtigen KI-Anwendungsfalles – ebenfalls darauf zu achten, dass die KI-Anwendung sowohl den Anbietenden wie auch den Anwendenden nützt. Diese und weitere Erfolgsprinzipien werden detailliert in der Studie Künstliche Intelligenz – Geschäftsmodellinnovationen und Entwicklungstrends beschrieben.
Ongoing digitalization and Industry 4.0 enable the development of new business models due to the increase in available data and digital connected products. A promising business model type for the machinery and plant engineering industry are subscription models, consisting of products and services offered in return for continuous payments. However, subscription-based business models are associated with extensive changes in the traditional machinery and plant engineering industry, in particular, for small and medium-sized companies (SMEs). Established concepts for the development of value propositions and business models neglect important aspects, such as the integrated development and optimization of products and services across the entire life cycle or the data infrastructure. This paper presents a concept for a methodology to support SMEs developing value propositions within subscription models. Therefore, the systematic identification of customer benefits, the determination and prioritization of subscription relevant functionalities as well as the design of product and service elements addressing those functionalities are the main aspects on which the focus is placed on. The result is a subscription value proposition canvas for SMEs to address the impact of subscription models on products and services.