IDEAS home Printed from https://ideas.repec.org/a/nms/untern/10.5771-0042-059x-2016-2-124.html
   My bibliography  Save this article

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: https://www.nomos-elibrary.de/10.5771/0042-059X-2016-2-124
    Download Restriction: no
    File URL: https://libkey.io/10.5771/0042-059X-2016-2-124?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Schiele, Holger & Krummaker, Stefan, 2011. "Consortium benchmarking: Collaborative academic-practitioner case study research," Journal of Business Research, Elsevier, vol. 64(10), pages 1137-1145, October.
    2. Adam J. Bock & Tore Opsahl & Gerard George & David M. Gann, 2012. "The Effects of Culture and Structure on Strategic Flexibility during Business Model Innovation," Journal of Management Studies, Wiley Blackwell, vol. 49(2), pages 279-305, March.
    3. Spiggle, Susan, 1994. "Analysis and Interpretation of Qualitative Data in Consumer Research," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 21(3), pages 491-503, December.
    4. Morris, Michael & Schindehutte, Minet & Allen, Jeffrey, 2005. "The entrepreneur's business model: toward a unified perspective," Journal of Business Research, Elsevier, vol. 58(6), pages 726-735, June.
    5. Gerard George & Adam J. Bock, 2011. "The Business Model in Practice and its Implications for Entrepreneurship Research," Entrepreneurship Theory and Practice, , vol. 35(1), pages 83-111, January.
    6. Shafer, Scott M. & Smith, H. Jeff & Linder, Jane C., 2005. "The power of business models," Business Horizons, Elsevier, vol. 48(3), pages 199-207.
    7. Christoph Zott, 2003. "Dynamic capabilities and the emergence of intraindustry differential firm performance: insights from a simulation study," Strategic Management Journal, Wiley Blackwell, vol. 24(2), pages 97-125, February.
    8. Christoph Zott & Raphael Amit, 2007. "Business Model Design and the Performance of Entrepreneurial Firms," Organization Science, INFORMS, vol. 18(2), pages 181-199, April.
    9. B. Demil & X. Lecocq, 2010. "Business model evolution : in search of dynamic consistency," Post-Print hal-00572915, HAL.
    10. Henry Chesbrough & Richard S. Rosenbloom, 2002. "The role of the business model in capturing value from innovation: evidence from Xerox Corporation's technology spin-off companies," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 11(3), pages 529-555, June.
    11. Sabrina Schneider & Patrick Spieth, 2013. "Business Model Innovation: Towards An Integrated Future Research Agenda," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 17(01), pages 1-34.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Belussi, Fiorenza & Orsi, Luigi & Savarese, Maria, 2019. "Mapping Business Model Research: A Document Bibliometric Analysis," Scandinavian Journal of Management, Elsevier, vol. 35(3).
    2. Matthias Filser & Sascha Kraus & Matthias Breier & Ioanna Nenova & Kaisu Puumalainen, 2021. "Business model innovation: Identifying foundations and trajectories," Business Strategy and the Environment, Wiley Blackwell, vol. 30(2), pages 891-907, February.
    3. Göran Roos, 2014. "Business Model Innovation to Create and Capture Resource Value in Future Circular Material Chains," Resources, MDPI, vol. 3(1), pages 1-27, March.
    4. Sascha Kraus & Alexander Brem & Miriam Schuessler & Felix Schuessler & Thomas Niemand, 2019. "Innovative Born Globals: Investigating the Influence of Their Business Models on International Performance," World Scientific Book Chapters, in: Alexander Brem & Joe Tidd & Tugrul Daim (ed.), Managing Innovation Internationalization of Innovation, chapter 11, pages 275-328, World Scientific Publishing Co. Pte. Ltd..
    5. Randhawa, Krithika & Wilden, Ralf & Gudergan, Siegfried, 2021. "How to innovate toward an ambidextrous business model? The role of dynamic capabilities and market orientation," Journal of Business Research, Elsevier, vol. 130(C), pages 618-634.
    6. Clinton, Eric & McAdam, Maura & Gamble, Jordan Robert, 2018. "Transgenerational entrepreneurial family firms: An examination of the business model construct," Journal of Business Research, Elsevier, vol. 90(C), pages 269-285.
    7. Arash Rezazadeh & Ana Carvalho, 2018. "A value-based approach to business model innovation: Defining the elements of the concept," NIPE Working Papers 12/2018, NIPE - Universidade do Minho.
    8. Anna-Greta Nyström & Miia Mustonen, 2017. "The dynamic approach to business models," AMS Review, Springer;Academy of Marketing Science, vol. 7(3), pages 123-137, December.
    9. Sarel Gronum & John Steen & Martie-Louise Verreynne, 2016. "Business model design and innovation: Unlocking the performance benefits of innovation," Australian Journal of Management, Australian School of Business, vol. 41(3), pages 585-605, August.
    10. Marko Peric & Jelena Durkin & Vanja Vitezic, 2017. "The Constructs of a Business Model Redefined: A Half-Century Journey," SAGE Open, , vol. 7(3), pages 21582440177, September.
    11. Arturo Orea Rocha & Carmelo García Pérez & Fernando Crecente Romero & Maria Teresa del Val Núñez, 2018. "The Business Model and its Core Elements. Proposal of Definition and Table of Core Elements," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 12(4), December.
    12. Ales Novak, 2014. "Business Model Literature Overview," FINANCIAL REPORTING, FrancoAngeli Editore, vol. 2014(1), pages 79-130.
    13. Raphaël Maucuer & Alexandre Renaud, 2019. "Business Model Research: A Bibliometric Analysis of Origins and Trends," Post-Print hal-01918188, HAL.
    14. Patrick Spieth & Sabrina Schneider, 2016. "Business model innovativeness: designing a formative measure for business model innovation," Journal of Business Economics, Springer, vol. 86(6), pages 671-696, August.
    15. Payam Hanafizadeh & Mohammad Mehrabioun & Kambiz Badie & Jahanyar Bamdad Soofi, 2018. "A Systemic Framework for Business Model Design and Development -Part A: Theorizing Perspective," Systemic Practice and Action Research, Springer, vol. 31(4), pages 437-461, August.
    16. Yuan Jing, 2022. "The Relationship Between Business Model Innovation and Operational Performance of Incubator Enterprise," International Journal of Science and Business, IJSAB International, vol. 16(1), pages 153-191.
    17. Balboni, Bernardo & Bortoluzzi, Guido & Pugliese, Roberto & Tracogna, Andrea, 2019. "Business model evolution, contextual ambidexterity and the growth performance of high-tech start-ups," Journal of Business Research, Elsevier, vol. 99(C), pages 115-124.
    18. Cinzia Battistella & Gianluca Murgia & Fabio Nonino, 2021. "Free-driven web-based business models," Electronic Commerce Research, Springer, vol. 21(2), pages 445-486, June.
    19. Amandine Maus & Sylvie Sammut, 2018. "Business model innovation in incubators: the role played by dynamic capabilities theory," Post-Print hal-02466175, HAL.
    20. Ancillai, Chiara & Sabatini, Andrea & Gatti, Marco & Perna, Andrea, 2023. "Digital technology and business model innovation: A systematic literature review and future research agenda," Technological Forecasting and Social Change, Elsevier, vol. 188(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nms:untern:10.5771/0042-059x-2016-2-124. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Nomos Verlagsgesellschaft mbH & Co. KG (email available below). General contact details of provider: http://www.nomos.de/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.