Abstract

https://ssrn.com/abstract=2571033
 


 



Business Model Innovation for Industrie 4.0: Why the 'Industrial Internet' Mandates a New Perspective on Innovation


Christian Burmeister


RWTH Aachen University - Technology and Innovation Management Group

Dirk Luettgens


RWTH Aachen University - Technology and Innovation Management Group

Frank T. Piller


RWTH Aachen University

August 28, 2015

Die Unternehmung, Vol 2/2016
RWTH-TIM Working Paper

Abstract:     
Industrie 4.0 (I40), i.e. the implementation of cyber-physical systems along the entire value chain and a far reaching digitalization of products and processes, is regarded as a significant agent of change in our current industrial system. While the previous discussion of I40 has been centered on technologies and standards, our focus is on business models (BM) for and enabled by I40. Having the right I40 BM will ultimately decide about companies’ market positions and profitability. This calls for a systematic process for business model innovation (BMI). The previous academic literature has offered mostly conceptual reviews to date. Empirical analyses of management approaches and processes applied for BMI are scarce. Based on an exploratory research design, we present the results of a comparative interview study with large companies and industry associations. We analyze I40 business model characteristics, provide an in-depth perspective of companies’ processes, structures and tools for BMI and derive upcoming practices as well as key competencies for BMI in the course of I40. Our results indicate a diverse picture. While some companies have dedicated BMI structures in place and lead I40 BMI, others could benefit from complementing existing product and service development with a systematic approach to BMI, building the fundamental capability to exploit the opportunities of I40.

Keywords: Business Model innovation, Industry 4.0, Industrial Internet of Things, Cyber-Physical Production Systems, qualitative research

JEL Classification: M10, M13, M31


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Date posted: February 28, 2015 ; Last revised: June 29, 2016

Suggested Citation

Burmeister, Christian and Luettgens, Dirk and Piller, Frank T., Business Model Innovation for Industrie 4.0: Why the 'Industrial Internet' Mandates a New Perspective on Innovation (August 28, 2015). Die Unternehmung, Vol 2/2016; RWTH-TIM Working Paper . Available at SSRN: https://ssrn.com/abstract=2571033 or http://dx.doi.org/10.2139/ssrn.2571033

Contact Information

Christian Burmeister
RWTH Aachen University - Technology and Innovation Management Group ( email )
Kackertstr. 15
Aachen, 52072
Germany
Dirk Luettgens
RWTH Aachen University - Technology and Innovation Management Group ( email )
Kackertstr. 15
Aachen, 52072
Germany
Frank T. Piller (Contact Author)
RWTH Aachen University ( email )
TEMPLERGRABEN 64
AACHEN, D-52056
Germany
HOME PAGE: http://www.tim.rwth-aachen.de/piller/
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