Global manufacturing value networks: assessing the critical roles of platform ecosystems and Industry 4.0

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Arindam Das ◽  
Sourav Dey
Keyword(s):  
Industry 4.0 ◽  
Business Models ◽  
Critical Role ◽  
Content Type ◽  
Value Network ◽  
Industry Competition ◽  
Exploratory Approach ◽  
Platform Ecosystems ◽  
Packaged Food ◽  
Industry Sectors

PurposeThe purpose of this paper is to synthesize a manufacturing value network for digital multinationals that combines the global reach of multinationals, the power of platform business models and digitalization. Toward this, the authors assess the critical roles platform ecosystems, and Industry 4.0 play in resolving the key challenges associated with asset specificity, location specificity and information asymmetry, inherent in the conventional business models of manufacturing multinationals.Design/methodology/approachThe authors take an exploratory approach in reviewing industry literature and analyzing implementations of digital technologies in manufacturing and supply chain processes at four large manufacturing multinationals from diverse industry sectors, from electronics to packaged food production. The authors also identify how value-creation activities are relocated, and how players collaborate to create and capture value. Consequently, the authors abstract a framework for global value network of manufacturing multinationals.FindingsWith changing definitions of industry, competition and organizations, the authors’ framework for manufacturing value network establishes the ways digitalization can be integrated in the global businesses of manufacturing multinationals, realizing the combinatorial effect of Industry 4.0 and platform ecosystems. The transformation redefines the ways multinationals have been leveraging their ownership-location-internalization (OLI) advantages. The authors recognize that the multinational orchestrator plays a critical role in creating shared goals for platform participants and governing the dynamics. In addition, the participants' propensity to trust the platform and the perceived trustworthiness of the orchestrator shape the scope and boundaries of the platform.Originality/valueThe authors raise critical questions about the role of multinational orchestrator and trust dimensions. In addition, the OLI-platform paradigm that incorporates the combinatorial effect of platform ecosystem and Industry 4.0 explains how multinationals create and capture value in new ways.

Procurement 4.0: factors influencing the digitisation of procurement and supply chains

2018 ◽  
Vol 24 (4) ◽  
pp. 965-984 ◽  
Author(s):  
Florian Bienhaus ◽  
Abubaker Haddud
Keyword(s):  
Supply Chains ◽  
Industry 4.0 ◽  
Online Survey ◽  
Business Models ◽  
Industrial Revolution ◽  
Primary Data ◽  
Content Type ◽  
Procurement Process ◽  
Enabling Technologies ◽  
The Impact

Purpose While digitisation is a key driver of the fourth industrial revolution (Industry 4.0); organisations have different approaches to deal with this topic to get a clearer picture of the opportunities and challenges concerning the digital transformation. The purpose of this paper is to identify the impact of digitisation on procurement and its role within the area of supply chain management. The research will also explore potential barriers to digitising procurement and supply chains and ways to overcome them. Finally, the significance of potential enabling technologies to the digitisation will also be examined. Design/methodology/approach A quantitative approached utilising an online survey was used to collect the primary data for this study. Data were collected from 414 participants directly involved with procurement or related business functions and work for different organisations in different industries. The survey included eight items about the impact of digitisation on organisational performance in the area of procurement and supply chains; ten items related to key barriers to digitisation of organisations and ways to overcome them; and seven items about enabling technologies to leverage procurement procedures and processes digitisation. All of these items utilised the Likert five-point level of agreement scale. Findings The findings indicate that digitisation of procurement process can yield several benefits including: supporting daily business and administrative tasks, supporting complex decision-making processes, procurement will become more focussed on strategic decisions and activities, procurement will become a strategic interface to support organisational efficiency, effectiveness, and profitability, and supporting the creation of new business models, products, and services. The authors were also able to confirm that there are barriers to digitising procurement process and supply chains and such barriers found in existing procedures, processes, capacities, and capabilities. Finally, the significance of a number of enabling technologies to the digitisation process was revealed. Originality/value To the best of the authors’ knowledge, this is the first study of its kind with participants located world-wide. Industry 4.0 as a topic had been explored within different business areas and functions but very limited research specifically explored potential impact, barriers, and enabling technologies of procurement 4.0. The results can be beneficial for organisations already implemented Industry 4.0 or planning to do so. The study can also benefit academic scholars interested in the researched topic, business professionals, organisations within different sectors, and any other party interested in understanding more the concept of procurement 4.0.

Luxury fashion and sustainability: looking good together

2019 ◽  
Vol 41 (4) ◽  
pp. 55-61 ◽  
Author(s):  
Jacqueline Campos Franco ◽  
Dildar Hussain ◽  
Rod McColl
Keyword(s):  
Best Practice ◽  
Business Models ◽  
Research Approach ◽  
Bottom Line ◽  
Content Type ◽  
Case Examples ◽  
Multiple Case ◽  
Social Environmental ◽  
Sustainability Challenges ◽  
Industry Sectors

Purpose The purpose of this paper is to highlight critical sustainability challenges facing luxury fashion firms and to describe examples of best practice in responding to these challenges. Design/methodology/approach The research approach combines a detailed literature review with multiple-case examples. The paper adopts the triple bottom line framework for structuring the analysis and findings, which suggests reporting sustainability efforts in three categories of actions – social, environmental and economic. Findings Prior research suggests that luxury fashion marketing and principles of sustainability may represent contradictory philosophies. However, this paper of case examples suggests that this may no longer be the case. We identify six lessons in guiding future sustainability practices. Practical implications The findings have implications for managers operating in luxury fashion, but the findings are also pertinent to managers in other industries. Originality/value Prior research in luxury fashion has generally focused on the industry’s poor record in sustainability and how luxury and sustainability may be incompatible. In this paper, we conclude that most luxury fashion firms are aware of the need to integrate sustainability into their business models. By uncovering examples of best practice in sustainability, we demonstrate how luxury fashion firms have responded to these challenges with lessons for other industry sectors.

Industry 4.0 and digital supply chain capabilities

2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Maciel M. Queiroz ◽  
Susana Carla Farias Pereira ◽  
Renato Telles ◽  
Marcio C. Machado
Keyword(s):  
Supply Chain ◽  
Industry 4.0 ◽  
Business Models ◽  
Future Research ◽  
Content Type ◽  
Integrative Framework ◽  
Starting Point ◽  
Narrative Literature ◽  
Practical Implications ◽  
Shed Light

Purpose The Industry 4.0 phenomenon is bringing unprecedented disruptions for all traditional business models and hastening the need for a redesign and digitisation of activities. In this context, the literature concerning the digital supply chain (DSC) and its capabilities are in the early stages. To bridge this gap, the purpose of this paper is to propose a framework for digital supply chain capabilities (DSCCs). Design/methodology/approach This paper uses a narrative literature approach, based on the main Industry 4.0 elements, supply chain and the emerging literature concerning DSC disruptions, to build an integrative framework to shed light on DSCCs. Findings The study identifies seven basic capabilities that shape the DSCC framework and six main enabler technologies, derived from 13 propositions. Research limitations/implications The proposed framework can bring valuable insights for future research development, although it has not been tested yet. Practical implications Managers, practitioners and all involved in the digitalisation phenomenon can utilise the framework as a starting point for other business digitalisation projects. Originality/value This study contributes to advancing the DSC literature, providing a well-articulated discussion and a framework regarding the capabilities, as well as 13 propositions that can generate valuable insights for other studies.

Industry 4.0 will arrive unevenly

2016 ◽  
Keyword(s):  
Industry 4.0 ◽  
Business Models ◽  
Capital Expenditure ◽  
Intelligent Manufacturing ◽  
Content Type ◽  
Production Distribution ◽  
New Business ◽  
Production Flexibility ◽  
Smart Factories ◽  
New Business Models

Subject Outlook for industry 4.0. Significance Dubbed variously 'Industry 4.0', 'intelligent manufacturing' or the 'internet of everything', cyber-physical systems that control the flow of materials, products and information are starting to transform industrial production and supply chains. They will eventually disrupt business models and challenge policymakers. Impacts Improved production flexibility and vertical integration with customers should facilitate bespoke manufacturing ('mass customisation'). Entire value chains will vertically integrate, embracing product design, procurement, production, distribution, sales and maintenance. Horizontal integration around smart factories will create new business models based on manufacturing as a service (MaaS). Pay-by-use and subscription-based MaaS could upend traditional models for financing capital expenditure on plant and equipment.

Business model innovation in small- and medium-sized enterprises

2019 ◽  
Vol 30 (8) ◽  
pp. 1127-1142 ◽  
Author(s):  
Julian Marius Müller
Keyword(s):  
Business Model ◽  
Industry 4.0 ◽  
Business Models ◽  
Customer Relationships ◽  
General Level ◽  
German Industry ◽  
Exploratory Research ◽  
Content Type ◽  
Business Model Canvas ◽  
Key Resources

Purpose Industry 4.0 is expected to significantly transform industrial value creation. However, research on business models affected through Industry 4.0, and on small- and medium-sized enterprises (SMEs), remains scarce. In response, the purpose of this paper is to address both aspects, further elaborating on the role that SMEs can take toward Industry 4.0 as provider or user. Design/methodology/approach The paper used an exploratory research design based on 43 in-depth expert interviews within the three most important German industry sectors, mechanical and plant engineering, electrical engineering and automotive suppliers. Interviews were conducted with leading personnel of the respective enterprises, including 22 CEOs. They assign business model implications through Industry 4.0, referring to the Business Model Canvas, while the paper delineates between Industry 4.0 providers and users. Findings The paper finds that key resources and value proposition are among the most affected elements of the business model, whereas channels are the least affected. Furthermore, distinct characteristics between Industry 4.0 providers and users can be delineated. In general, Industry 4.0 providers’ business models are significantly more affected than users, except for key partners and customer relationships. Research limitations/implications Industry 4.0 remains at its early stages of implementation. As a result, many interviewees’ answers remain at a rather general level. Practical implications Strategies for the further alignment of the business models are provided for Industry 4.0 providers and users. Originality/value The paper is among the few that investigate Industry 4.0 in the context of SMEs and business models.

Do you have a naïve forecasting model of the future?

2020 ◽  
Vol 38 (4) ◽  
pp. 267-269
Author(s):  
Larry Wofford ◽  
David Wyman ◽  
Christopher W. Starr
Keyword(s):  
Systems Theory ◽  
Industry 4.0 ◽  
Business Models ◽  
Technology Innovation ◽  
Business Environment ◽  
Disruptive Innovation ◽  
Commercial Real Estate ◽  
Disruptive Technology ◽  
Content Type ◽  
The Impact

PurposeThis paper addresses the increasingly rapid and disruptive changes caused by technology innovations impacting commercial real estate (CRE) and how leaders in today's CRE business environment can better anticipate, and even experiment with, disruptive technologies while maintaining current business assets and practices.Design/methodology/approachThis qualitative research is based in systems theory, through which the impact of disruptive technology innovation cycles on business models is described for tactical and strategic utility.FindingsThe advent of the fourth industrial revolution (Industry 4.0) is characterized by a convergence of multiple technological innovations including artificial intelligence, the Internet of things, smart buildings, autonomous agents, and automated decision-making. Industry 4.0 promises a future of discontinuities and disruptive innovation superseding the deployment of digital technologies enabled by Industry 3.0. Ambidextrous leaders need to maintain two concurrent foci: one on the current CRE business environment for incremental improvements and one on new opportunities made possible by the next technology innovation cycle.Practical implicationsBy anticipating the inflection points of nonlinear technology adoption cycles, CRE leaders can reduce risks and increase innovative opportunities as participants in the next disruptive cycle rather than falling victim to it.Originality/valueThis work examines CRE market disruptions caused by technology innovation cycles through the lens of systems theory. A connection is made between the nonlinear nature of technology disruption cycles within the CRE business environment and how CRE leadership can better anticipate and prepare for change through ambidextrous thinking.

From precision agriculture to Industry 4.0

2019 ◽  
Vol 121 (8) ◽  
pp. 1730-1743 ◽  
Author(s):  
Leonello Trivelli ◽  
Andrea Apicella ◽  
Filippo Chiarello ◽  
Roberto Rana ◽  
Gualtiero Fantoni ◽  
...  
Keyword(s):  
Precision Agriculture ◽  
Environmental Sustainability ◽  
Industry 4.0 ◽  
Business Models ◽  
Business Processes ◽  
Agricultural Sector ◽  
Research Work ◽  
Digital Technologies ◽  
Market Demand ◽  
Content Type

Purpose Circumstances that are have a significant impact on it. In particular, environmental sustainability related to the increase of worldwide population, and market demand for agricultural products (with consumers more and more aware about cultivation and breeding techniques and interested in healthy and high-quality products) represent two of the key challenges that the agricultural sector is going to face in next years. In such a landscape, technological innovations that can support organizations and entrepreneurs to face these problems become increasingly important, and Industry 4.0 is the most striking example. Indeed, the Industry 4.0 paradigm aims to integrate digital technologies into business processes to raise productivity levels and to develop new business models. Accordingly, digital technologies play a similar role in the precision agriculture domain, and the purpose of this paper is to understand if the technologies at the basis of these two paradigms are the same or not. Design/methodology/approach The present work investigates how the two domains of Industry 4.0 and precision agriculture are connected to one another by analyzing the most used technologies in both the fields in order to highlight common patterns and technological overlaps. To reach such goal, an approach combining manual and automated analysis was developed. Findings The research work generated three main results: a dictionary of precision agriculture technologies including 324 terms; a graph, describing the connections between the technologies composing the dictionary; and a representation of the main technological clusters identified. Originality/value These show how the two domains under analysis are directly connected and describe the most important technologies to leverage when approaching digital transformation processes in the agricultural sector.

A multidimensional platform ecosystem framework

Kybernetes ◽  
2020 ◽  
Vol 49 (7) ◽  
pp. 2003-2035
Author(s):  
Sergey Yablonsky
Keyword(s):  
Business Models ◽  
Economic Value ◽  
Levels Of Analysis ◽  
Future Research ◽  
Content Type ◽  
Integrative Framework ◽  
Formal Taxonomy ◽  
Platform Ecosystems ◽  
Platforms And Ecosystems ◽  
Different Levels

Purpose Ecosystems that support digital businesses maximize the economic value of network connections. This forces a shift toward platforms and ecosystems that are collaborative by nature by applying business models with multiple actors playing multiple roles. The purpose of this study is to show how the main concepts emerging from research on digital platform ecosystems (DPEs) could be organized in a taxonomy-based framework with different levels or dimensions of analysis. This study discusses some of the contingencies at these different levels and argues that future research needs to study DPEs across multiple levels of analysis. While this integrative framework allows the comparison, contrast and integration of various perspectives at different levels of analysis, further theorizing will be needed to advance the DPE research. The multidimensional framework proposed here involves the use of a multimethodological approach that incorporates a synergy of businesses, technological innovations and management methods to provide support for research in interrelationships across platform ecosystems (PEs) on a regular basis. Design/methodology/approach This paper proposes a new PE framework by constructing a formal taxonomy model that explains a vast group of phenomena produced by the PEs. Findings In addition to illustrating the PE taxonomy framework, this study also proposes a clear and precise description and structuring of the information in the ecosystem domain. The PE framework assists in identification, creation, assessment and disclosure research of platform business ecosystems. Research limitations/implications Because of the large number of taxonomy concepts (over 200), only main taxonomy fragments are shown in the paper. Practical implications The outcomes of this research could be used for planning, oversight and control over ecosystem management and the use of ecosystem’s knowledge-related resources for research purposes. Originality/value The PE framework is original and represents an effective tool for observing PEs.

Managing career lengthening in France: why such inertia?

2019 ◽  
Vol 38 (9) ◽  
pp. 699-707
Author(s):  
Jean-Yves Hamiot
Keyword(s):  
Business Model ◽  
Business Models ◽  
Human Resources Management ◽  
Research Field ◽  
Organizational Dynamics ◽  
Critical Research ◽  
Content Type ◽  
Dead End ◽  
Exploratory Approach ◽  
The Media

Purpose The purpose of this paper is to understand to what extent the analysis of career scripts explains the inertia in implementing mandatory interviews designed to anticipate career lengthening in France. Design/methodology/approach This exploratory approach is based on 26 interviews of French cadres (a mix of managers and professionals) aged 45 and over in the media agency sector. Findings Two career scripts – one for the majority who perceive themselves in a dead end, and the other, more optimistic for those who experience job mobility – show several commonalities. Moreover, their combination suggests an entanglement with the previous business model of media agencies. Research limitations/implications The survey was conducted on a non-random sample in a radically changing sector. However, the entanglement may explain the inertia with regard to changes in career scripts and agencies’ business model. Practical implications As these cadres need to work longer and move from traditional media expertise to cross-functional consulting capacity, mandatory interviews should be integrated into a human resources management strategy that fosters intra-organizational dynamics. Social implications The lengthening of the professional life in France appears as a paradigm shift. The study of career sustainability in contexts becomes a critical research field for management development. Originality/value The institutional approach of managers’ careers is well developed, but there is a gap in understanding the entanglement of career scripts and business models. This may help address inertia in change processes.

A SAP-LAP linkages framework for integrating Industry 4.0 and circular economy

2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chetna Chauhan ◽  
Abhishek Sharma ◽  
Amol Singh
Keyword(s):  
Circular Economy ◽  
Industry 4.0 ◽  
Business Models ◽  
New Paradigm ◽  
Content Type ◽  
Physical Systems ◽  
Strategic Issues ◽  
Advanced Technologies ◽  
Top Managers ◽  
Process Learning

Purpose In the recent years, the two increasingly popular topics, namely, Industry 4.0 and circular economy (CE) have attracted the attention of many academicians and practitioners. However, the connection between CE and Industry 4.0 has not been much investigated in the literature. Motivated by this gap, the purpose of this paper is to integrate these two streams and attempt to understand the new paradigm of Industry 4.0 for resolving the issues pertaining to CE principles. Design/methodology/approach The study uses situation, actor, process, learning, action, performance (SAP-LAP) linkages framework to analyze the applications of Industry 4.0 mechanisms in realizing the issues of current CE business models. This is done through the interpretation of the cross-interaction and self-interaction relationships among the different interfaces/elements of SAP-LAP. Findings The results suggest that top managers are the most essential actors for integrating the use of Industry 4.0 to achieve sustainability, in the light of CE. In addition, advanced technologies such as Internet of Things and cyber-physical systems are the most important Industry 4.0 actions that help in improving the CE performance parameters. Research limitations/implications This qualitative study is an attempt to analyze and assess the strategic issues pertaining to Industry 4.0 standards in CE. The study identifies learnings (challenges/opportunities) and the corrective actions which are imperative toward achieving CE principles. This study will guide managers and policymakers to understand the importance of implementing Industry 4.0 for accomplishing CE principles. Originality/value This study integrates two important streams of literature – Industry 4.0 and CE. Thus, this paper offers insights about the importance of Industry 4.0 standards in achieving CE principles.

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