Digital Business Models for Industry 4.0: How Innovation and Technology Shape the Future of Companies (Future of Business and Finance)

Technological advancements are contributing to shape future business models and the industrial scenario. Companies face the challenge of having to adapt to the frequently shifting technology landscape. Therefore, organizations must exploit technological advances to thrive in the digital revolution. This book presents and discusses emerging digital business models in the Industry 4.0. These models are illustrated with real case studies and include data-driven, platform, smart factory and servitization among others. The book introduces a detailed classification to help organizations to redesign their current business models and discusses how to gain unique competitive advantages. The book includes not only theoretical concepts to understand the context of digital transformation but also an assessment framework to enable and support innovation in organizations and create new revenue streams. The book will be of interest to students and professionals alike who want to understand the core of the Industry 4.0. Foreword Introduction Contents 1: Strategic Innovation Driven by Digital Transformation 1.1 Strategic Innovation 1.1.1 Strategic Innovation: Features and Processes 1.1.2 Strategic Innovation: Sources 1.2 The Business Model Framework 1.2.1 The Business Model and its Building Blocks Value Proposition Suppliers, Procurement Channels, and Methods Resources Processes and Outsourcing Products, Communication, and Distribution Channels Customers and Customer Feedback Society and Corporate Social Responsibility Cost Structure and Revenue Model 1.2.2 The Business Model Canvas and the Strategic Fit Matrix 1.3 The Fourth Industrial Revolution 1.3.1 Industry 4.0 Technological Strategies 1.3.2 Industry 4.0 Strategic Innovations Smart Value Chain Resources Internal Processes External Processes Products Smart Value (Eco)System Suppliers Customers Society Value Proposition References 2: Industry 4.0 and Its Digital Paradigms 2.1 Digital Manufacturing 2.2 Autonomous and Collaborative Robots 2.3 Augmented and Virtual Reality 2.4 Industrial Internet of Things 2.5 Cloud Computing 2.6 Simulation 2.7 Big Data Analytics 2.7.1 Descriptive Analytics 2.7.2 Diagnostic Analytics 2.7.3 Predictive Analytics 2.7.4 Prescriptive Analytics 2.8 Cybersecurity 2.9 Structural Horizontal and Vertical System Integration 2.10 Analysis of the Impact of Operational Benefits References 3: Industry 4.0 and the Emergent Business Models 3.1 Digital Operating Model 3.1.1 Digital Operating Model: Product Dematerialization 3.1.2 Digital Operating Model: Software Bug Detection 3.1.3 Digital Operating Model: Software Testing 3.1.4 Digital Operating Model: Endless Users Anywhere and Anytime 3.1.5 Digital Operating Model: Non-Traditional Revenue Model 3.2 The Introduction of Artificial Intelligence within Digital-First Products 3.3 Data-Driven Business Models 3.3.1 Indirect Data Monetization: Product Endless Improvement 3.3.2 Indirect Data Monetization: Customization 3.3.3 Indirect Data Monetization: Product Upgrading/Up-Selling 3.3.4 Indirect Data Monetization: New Product Development/Cross-Selling 3.3.5 Indirect Data Monetization: New Market Space Creation 3.3.6 Direct Data Monetization 3.4 Platform Business Models 3.4.1 Data Confederation 3.4.2 Infrastructure Community 3.4.3 Social Network 3.4.4 Marketplace 3.5 Phygital Operating Model 3.5.1 Phygital Operating Model: Cyber Production 3.5.2 Phygital Operating Model: Cyber-Physical Production 3.5.3 Phygital Operating Model: Configuration and Optimization 3.5.4 Phygital Operating Model: Automation and Control 3.5.5 Phygital Operating Model: Forecast and Prediction 3.6 Smart Factory Business Models 3.6.1 Smart Factory Business Model 3.6.2 Smart Factory Business Model: Decentralized Production and Control 3.6.3 Smart Factory Business Model: Smart Supply Chain 3.6.4 Smart Factory Business Model: Agile Collaboration Network 3.6.5 Smart Factory Business Model: Hub and Spoke 3.6.6 Smart Factory Business Model: Production as a Service 3.7 Servitization Business Models 3.7.1 Servitization Business Model: Product Ownership 3.7.2 Servitization Business Model: Product + Service (Add-on Hardware) 3.7.3 Servitization Business Model: Product + Service (Add-on Software) 3.7.4 Servitization Business Model: Product Availability 3.7.5 Servitization Business Model: Product-as-a-Service 3.7.6 Servitization Business Model: Product Subscription References 4: The Integration of Digital Business Models: The Amazon Case Study 4.1 Amazon as an E-Commerce Business and Distributor (Smart Factory Business Model) 4.2 Amazon as a Marketplace Platform (Platform Business Model) 4.3 Amazon as a Service Provider (Data-Driven and Servitization Business Models) 4.4 Amazon as a Phygital Product/Store Platform (Data-Driven and Platform Business Models) 4.5 Identifying the Tools and Techniques of Assessment 4.5.1 The Operational Fit Within Industry 4.0: Digital Strategy 4.5.2 The Competitive Fit Within Industry 4.0: Competitive Strategy References 5: Conclusions 5.1 Appendix 5.1.1 Research Methodology 5.1.2 Definition of the Building Blocks of the Strategic Fit Matrix