Business Strategy and Innovation Framework
5 INDUSTRIAL IOT BUSINESS MODEL INNOVATION
Once an enterprise has established an IIoT strategy and corresponding goals, it should put robust systems in place to actively identify, assess and initiate IIoT opportunities.
The best approach to generating ideas and managing new opportunities includes optimization measures and business model innovation. We use here Alexander Osterwalder and Yves Pigneur’ s definition of a business model, in which“ a business model defines the rationale of how an organization creates, delivers, and captures value.” [ AO1 ]
With increased digitization, we observe a shift from linear value chains to value creation within a network of stakeholders, both internal and external. As a result, multiple interested parties will need to streamline their efforts to maximize value for the target customer and end user. It is therefore crucial to think in terms of‘ value networks’ when defining business models. The following diagram illustrates the specific nature of an IIoT business model:
Figure
5-1: The specific nature of IIoT business models( Source: Bosch Software Innovations, 2016)
Because of the prominent role of IT in the IIoT, it will be even more important to close any gaps or adjust any misalignments that exist between business and IT groups within an organization. In the following sections, we will present a number of common methodologies and techniques that will help enterprises to align these domains.
One approach that enterprises may find helpful when pursuing ideas and designing business models is the IoT Business Model Builder developed by the University of St. Gallen and Bosch Software Innovations [ BSI1 ]. Although this procedure model relates to the wider IoT in general,
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