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

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  • Burmeister,
  • Lüttgens,
  • Piller,

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.

Suggested Citation

  • Burmeister, & Lüttgens, & Piller,, 2016. "Business Model Innovation for Industrie 4.0: Why the "Industrial Internet" Mandates a New Perspective on Innovation," Die Unternehmung - Swiss Journal of Business Research and Practice, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 70(2), pages 124-152.
    • Handle: RePEc:nms:untern:10.5771/0042-059x-2016-2-124
    DOI: 10.5771/0042-059X-2016-2-124
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    1. Weking, Jörg & Stöcker, Maria & Kowalkiewicz, Marek & Böhm, Markus & Krcmar, Helmut, 2020. "Leveraging industry 4.0 – A business model pattern framework," International Journal of Production Economics, Elsevier, vol. 225(C).
    2. Judit Nagy & Judit Oláh & Edina Erdei & Domicián Máté & József Popp, 2018. "The Role and Impact of Industry 4.0 and the Internet of Things on the Business Strategy of the Value Chain—The Case of Hungary," Sustainability, MDPI, vol. 10(10), pages 1-25, September.
    3. Verónica Sansabas-Villalpando & Iván Juan Carlos Pérez-Olguín & Luis Asunción Pérez-Domínguez & Luis Alberto Rodríguez-Picón & Luis Carlos Mendez-González, 2019. "CODAS HFLTS Method to Appraise Organizational Culture of Innovation and Complex Technological Changes Environments," Sustainability, MDPI, vol. 11(24), pages 1-28, December.
    4. Laima Gerlitz, 2016. "Design management as a domain of smart and sustainable enterprise: business modelling for innovation and smart growth in Industry 4.0," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 3(3), pages 244-268, March.
    5. Leonilde Varela & Adriana Araújo & Paulo Ávila & Hélio Castro & Goran Putnik, 2019. "Evaluation of the Relation between Lean Manufacturing, Industry 4.0, and Sustainability," Sustainability, MDPI, vol. 11(5), pages 1-19, March.
    6. Christian Arnold, 2017. "The Industrial Internet of Things from a Management Perspective: A Systematic Review of Current Literature," Journal of Emerging Trends in Marketing and Management, The Bucharest University of Economic Studies, vol. 1(1), pages 8-21, October.

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