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Digital business model tool

This idea is a part of The Future of Nordic Manufacturing

July 31, 2017

"Up until now, business has been all about ""maximizing own profit,"" meaning that companies have looked from a vendor-centric manner when conducting business. In this era of digitalization, for instance, industry 4.0 and the Internet of Things and other technologies it is required to collaborate with other participants in shared value ecosystems to enable services and acquire data. Hardware, connectivity, software and applications are needed for that, and a small company cannot comprehend all that in an efficient manner, creating incentive to start collaborating.

This requires a shift in the mentality of how to do business, which companies yet don't manifest. This hurdle makes it hard for companies to start doing digital business and if they don't they might risk disappearing in the future for not gathering data and servicing or lose market share. At the same time, it can be pointless to approach the digitalization with a ""we can do it all ourselves"" mentality, which most Danish manufacturing firms has that will lead to a dead-end.

The idea is to develop an educational handbook and business model tool, that explains how to collaborate in ecosystems to enable technological services. Like Osterwalder (proven concept) - (which is vendor-centric), however, a tool relevant for this time and place how to enable technological services via collaboration (network-centric).

According to the study (articles will be published soon), this can, for instance, be: Clarification of roles in ecosystems, shared financial structures, the disruptive transition from ""To-be"" ""As-is"" digital business models gives, understanding terms of data-ownership, how value flows in ecosystems and not only inside the vendor out on a network level, exemplifying possible digitization business model patterns, circular economy, from cradle to crave, getting product and then data ownership and so forth. The tool will support flexibility and agility which digital solutions requires and help identify new sources of revenue streams and how to capture them.

Non of the business model tools of today supports this network-centric view, and the specific needs to enable digitalization helping companies to accelerate in this domain (Westerlund er al., 2014), (Turber et al., 2014).

Various assumptions of important elements in a digital business model tool is validated talking to the leading european edge of IoT and technology. Manufacturing firms are yielding for visual tool comprehending the complex nature of digital business models. Next step is to to develop and commercialize a tool, which can enhance business consultants skills, knowledge and ability to consult in digital business modeling.

Some sources:
Westerlund, M., Leminen, S., & Rajahonka, M. 2014. Designing Business Models for the Internet of Things. Technology Innovation Management Review, 4(7): 5–14.

Turber, S., Brocke, J.V., Gassmann, O. and Flesich, E. (2014) Designing Business Models in the Era of Internet of Things. 9th International Conference, DESRIST 2014, Miami, 22-24 May 2014, 17-31.

Chan, H.C.Y. (2015) Internet of Things Business Models. Journal of Service Science and Management, 8, 552-568.

D’Souza, A., J.C. Wortmann, G. Huitema, H. Velthuijsen (2015) A business model design framework for viability; a business ecosystem approach, Journal of Business Models, Vol. 3, No. 2 pp. 1-29.

Högnelid, P. & Kalling, T (2015). Internet of Things and Business Models. 978-1-4673-9533-5/15 2015 IEEE

Jaehyeon Ju et al.(2016). Prototyping Business Models for IoT Service / Procedia Computer Science 91 (2016) 882 – 890"