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.

Industry 4.0 and Sustainability

2020 ◽  
pp. 67-84
Author(s):  
Sibel Yildiz Çankaya ◽  
Bülent Sezen
Keyword(s):  
Sustainable Development ◽  
Global Warming ◽  
Natural Resources ◽  
Industry 4.0 ◽  
Business Models ◽  
Industrial Revolution ◽  
New Business ◽  
The Impact ◽  
Industrial Revolutions ◽  
New Business Models

Modern industry developed over several centuries and three industrial revolutions. Today, we experience the fourth era of the industrial revolution, Industry 4.0. The advance of industrialization brought along many problems, including environmental pollution, global warming, and depletion of natural resources. As a result, the concept of sustainability began to gain importance. Sustainability can be achieved through a balance between economic, social, and environmental processes. In order to establish such balance, businesses need new business models or insights. At this point, Industry 4.0 can be regarded as a new business mindset that will help businesses and communities move towards sustainable development. The technologies used by Industry 4.0 bear a strong promise to solve these problems, after all. Even though Industry 4.0 attracts a lot of attention lately, few works are available on its impact on sustainability. This chapter examines the impact of Industry 4.0 on sustainability.

scholarly journals Digital transformation: harnessing digital technologies for the next generation of services

2019 ◽  
Vol 33 (4) ◽  
pp. 429-435 ◽  
Author(s):  
Mohamed Zaki
Keyword(s):  
Business Models ◽  
Digital Technologies ◽  
Customer Experience ◽  
Digital Transformation ◽  
Data Driven ◽  
Next Generation ◽  
Content Type ◽  
New Business ◽  
Market Opportunities ◽  
New Business Models

Purpose The purpose of this paper is to discuss digital transformation and its four trajectories – digital technology, digital strategy, customer experience and data-driven business models – that could shape the next generation of services. This includes a discussion on whether both the market and organizations are all ready for the digital change and what are the opportunities that will enable firms to create and capture value though new business models. Design/methodology/approach Providing services is a proven and effective way to secure a competitive position, deliver long-term stable revenues and open up new market opportunities. However, it is also clear that some organisations are struggling to digitally transform. Therefore, the commentary provides a brief insight into how firms explore the possibilities of digital transformation and navigate these uncharted waters. Findings Today’s digital technologies affect the organisation outside and in, enabling the creation of new business models and transforming the customer experience. The incumbents are acutely aware that they need to transform strategically – to build new networks and value chains. Originality/value This commentary extends earlier work exploring the digital disruption within services to highlight a number of connected areas: the challenges and opportunities of digital transformation at a strategic level, as well as understanding and enhancing the customer experience and seeing how new data-driven business models can underpin service transformation.

scholarly journals Backcasting for desirable futures in Finnish forest-based firms

foresight ◽  
2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Annukka Näyhä
Keyword(s):  
Business Models ◽  
The Novel ◽  
Sustainable Business ◽  
Strong Basis ◽  
Content Type ◽  
Theoretical Contribution ◽  
New Business ◽  
Participative Approach ◽  
Sustainable Business Models ◽  
New Business Models

Purpose In Finland, new forest-based sector (FBS) businesses are seen as important for the transition to the circular bioeconomy. The purpose of this study is to explore the transition of Finnish FBS companies to new business models. The aim is to understand how FBS companies define their ideal future states and related business models for the year 2030. Design/methodology/approach This study uses thematic interviews with managers from various FBS firms and companies from interfacing sectors. In the interviews, the key idea of backcasting was pursued when respondents discussed the desirable future states of their business. Findings The effort to achieve growth of the business and the appearance of new products characterize the company-specific desirable future states. In these desirable futures, expanded businesses will be based on strong knowledge. Resource efficiency and collaboration create a strong basis for the desirable future state of the whole FBS to create a sustainable and innovative “Wood Valley.” Research limitations/implications The key limitations are that the backcasting process has been conducted only through interviews and a participative approach with stakeholder dialogue is lacking in the process. This means that the desirable futures are created by the FBS companies only. Originality/value As a practical contribution, the study shows the future-oriented thinking and goals of FBS firms. As a theoretical contribution, it extends research on sustainable business models and discussions on the novel field of corporate foresight.

scholarly journals Clarifying the disruptive innovation puzzle: a critical review

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sucet Jimena Martínez-Vergara ◽  
Jaume Valls-Pasola
Keyword(s):  
Critical Review ◽  
Business Models ◽  
Disruptive Innovation ◽  
Complex Nature ◽  
Content Type ◽  
Disruptive Innovation Theory ◽  
Depth Analysis ◽  
New Business ◽  
Key Issues ◽  
New Business Models

PurposeDisruptive innovation theory has attracted the interest of researchers and practitioners across many areas, resulting in the development of new business models and strategies. Despite the increasing scholarly attention, its definition has not yet been understood, the understanding of the term “disruptive” and the complex nature of this innovation has provoked some misinterpretations, and the meaning remains ambiguous. To address this confusion, this article undertakes a critical review of disruptive innovation in an attempt at providing a solid theoretical grounding.Design/methodology/approachThe review examines the key issues of published articles, identified after conducting a search in the Web of Science scholarly database. The analysis highlights the basic definitions of disruptive innovation, showing its evolution, types and its characteristics. This article also examines the behaviours adopted by the actors associated with disruptive innovation (i.e. incumbents, entrants and customers).FindingsOverall, this article finds that disruptive innovation has its own elements to be identified, requiring an in-depth analysis to avoid confusing with other innovation approaches. The findings suggest that disruptive innovation affects businesses and sectors in varied and complex ways because customers from low-end market and mainstream market appreciate this innovation. Further, its impact on practice is huge and incites further efforts in establishing a stronger theoretical grounding.Originality/valueOur research contributes on the evolution of this theory, helping to better understand the phenomenon of disruption and can be used for different types of research settings.

New business models in supply chains: a bibliometric study

2019 ◽  
Vol 47 (12) ◽  
pp. 1283-1299 ◽  
Author(s):  
Régis Delafenestre
Keyword(s):  
Supply Chains ◽  
Business Models ◽  
New Technologies ◽  
Content Type ◽  
New Business ◽  
Paper Form ◽  
Scientific Results ◽  
Database Clustering ◽  
New Research ◽  
New Business Models

Purpose The purpose of this paper is to find and classify the most relevant works in the literature on the latest technologies applied in global supply chains. To help future researchers find the most relevant the authors according to the authors’ research interest quickly and to provide insights into the most promising areas. Design/methodology/approach The authors provide a bibliometric analysis of 292 documents referenced in the Scopus® database clustering by relatedness of works and keywords. Findings The authors present insights and deduce new perspectives in the potential search for new business models. The authors show that in specific fields, some works and authors have a much greater influence than others. Research limitations/implications Some documents published on the web or in paper form may be missing. The analyses largely depend on the choice of keywords. Another selection might have shown different results. Practical implications This paper provides the basis for new research in applications of the latest technologies in supply chains and corresponding new business models. Originality/value This work is a first effort to help researchers make sense of the mass of published scientific results on new technologies and their impact on new supply chain business models.

Convergence and digital fusion lead to competitive differentiation

2019 ◽  
Vol 26 (3) ◽  
pp. 707-720
Author(s):  
Ashish Thomas
Keyword(s):  
Business Models ◽  
Business Processes ◽  
Growth Strategies ◽  
Content Type ◽  
Business Operations ◽  
Digital Convergence ◽  
Global Banking ◽  
New Business ◽  
New Business Models

Purpose Organizations are consistently seeking innovative strategies and novel pathways to enhance business processes and create differentiation. The global business ecosystem is changing and there is growing demand for multi-modal digital technologies, big data consolidation and data analytics to harness a cost-competitive agile system. Technological convergence and integration of digital systems is one of the preferred methodologies that facilitates new and effective workflows and revives business processes. The progressive interlinking of digital technologies with business operations leads to the convergence and blending of management disciplines, devices and applications. The growing inconsistencies in managerial understanding regarding the benefits of convergence prompts a comprehensive examination of digital convergence pathways, identifying the impacts on converging entities and business objectives. The State bank of India (SBI) mega-merger case study was selected to investigate the pragmatic framework of digital convergence and to understand the impacts on interlinked entities such as: business operations, strategic management, project team that support value creation and competitive differentiation. The purpose of this paper is to focus on the phenomena of techno-fusion of emerging technologies creating new opportunities, business models and unique strategies for global banking and financial service organizations. Design/methodology/approach This study applies the qualitative, inductive research method using critical reflection of before and after the implementation of convergence and digital integration strategies. The SBI case study employs this research strategy based on the premise that banks must stay agile and highly responsive to the changing environment to enhance its value proposition and competitive differentiation objectives. The study methodology incorporates cooperative inquiry and multiple levels of analysis using data collection techniques of exhaustive review of archives, informal interviews, questionnaires and observations to identify the synergistic process improvement pathway. The study is grounded on the concept that the convergence of diverse business pathways involves innovative and interlinked project, strategic and information technology (IT) workflows that results in open innovative systems. Findings The studies identify that organizational innovation and creative solutions are a result of ecosystem turbulence, environmental force diversity, competitive pressure and the need for differentiation. Organizations that harness the power of digital fusion and convergence of management, systems and data generate a competitive advantage. The technological convergence strategy pulls multiple business and technology processes (project, strategic, IT, Cloud, AI and business process management) at the organizational, divisional or functional level generating new opportunities and threats, new business models and unique growth strategies for global banking and financial services organizations. Organizations that fully integrate techno-fusion of business and digital strategies produce synergistic effects and enhance adaptability, innovation and resiliency in the face of competitive challenges. Research limitations/implications Additional areas that can be explored further as an extension of this study are listed below: identifying factors to improve the speed of convergence; the current results are limited to large size organizations where formal management and technology functions are distinctive. Similar studies on smaller organizations are warranted. Originality/value This study focuses on the evolving field of technology innovation, which is increasingly being intertwined with business operations. Innovative digital technology is enabling the convergence of the disciplines of management, digital devices and applications. This facilitates the creation of a pragmatic framework that supports convergence of business operations, strategic management and digital fusion which leads to value creation and competitive differentiation. The techno-fusion of emerging technologies and digital strategies generates new opportunities and threats, new business models and unique growth strategies for organizations.

scholarly journals Digital transformation and new business models as determinants of formation of the economy of nontypical employment

2020 ◽  
Vol 10 (1) ◽  
pp. 33-54
Author(s):  
Anatoliy Kolot ◽  
Oksana Herasymenko
Keyword(s):  
Industry 4.0 ◽  
Business Models ◽  
Digital Transformation ◽  
Systematic Research ◽  
Gig Economy ◽  
The World ◽  
New Business ◽  
A Chain ◽  
Work And Employment ◽  
New Business Models

With the development of the Fourth Industrial Revolution and the formation of a new technological basis – “Industry 4.0” - a dynamic multi-vector transformation of the leading institutes of economy and society takes place, social and labor relations in general and employment in particular acquire new format and content. The quintessence of the article is a scientific-applied substantiation of the construct of nontypical employment economy, scientific argumentation and further development of previous researches of authors regarding determinants of gig-economy formation under the influence of economic and social development “digitalization” and emergence of new business models. that radically change all components of the world of work. New facets of the complex world of work and employment have been revealed and the increase of the newest knowledge in this field has been received under systematic research of a chain of changes: introduction of “Industry 4.0” breakthrough technologies → “digitalization” as a dominant vector of technological innovations → formation of new business models → changes in social division of labor and the content of labor processes → the emergence and intensive development of employment forms immanent to the new (digital) economy. It is substantiated that the main root cause, a kind of “trig- ger” for the emergence and reproduction of the chain of researched changes is digital transformation of the economy and society. The essence of today’s phenomena, which determine the development of the “gig economy”, is revealed. The argumentation of the spread of platform business models and their impact on the world of work and employment is given. A new theoretical construction of a chain of changes, the “output” of which is new forms and, a new platform for social and labor developmen t in general, has been suggested. The research focuses on finding answers to a number of questions posed to every conscious person. Among them are the following ones: Why can’t the modern economy “get along” with traditional (standard) forms of employment? Why does atypicality become not the exception but the norm? How do specific mechanisms and tools for transforming standard forms of employment into new ones, which are immanent to modern conditions of economic and social progress, behave in practice?

Going in circles: new business models for efficiency and value

2019 ◽  
Vol 40 (4) ◽  
pp. 36-43 ◽  
Author(s):  
Ana Beatriz Lopes de Sousa Jabbour
Keyword(s):  
Circular Economy ◽  
Design Methodology ◽  
Business Models ◽  
Business Case ◽  
Content Type ◽  
New Business ◽  
Key Issues ◽  
Conceptual Paper ◽  
Multiple Levels ◽  
New Business Models

Purpose This paper aims to explain what managers will want to know about the circular economy by covering some of the key issues and discussing an approach which may help organisations to move towards the circular economy. Design/methodology/approach This is a conceptual paper, which blends theory and hard facts to achieve its aims. Findings This paper presents a framework which uses multiple levels of analysis to explain how organisations can prepare for and implement circular economy practices. Originality/value This paper makes relevant contributions for both academics and practitioners by providing essential practical guidance on the “what”, “how” and “why” of the circular economy, which can help managers to plan and implement a convincing business case for this sustainable approach.

The Future of Modern Jobs

2020 ◽  
pp. 124-149
Keyword(s):  
Artificial Intelligence ◽  
Internet Of Things ◽  
Industry 4.0 ◽  
Business Models ◽  
The Internet ◽  
Learning Journey ◽  
New Business ◽  
To Come ◽  
The Internet Of Things ◽  
New Business Models

Throughout this book, the authors have discussed the implications of the rise of artificial intelligence, Industry 4.0, the internet of things, and new business models that do not have any known precedents. While discussing the skills needed to survive in the modern economy, they have yet to address the issue of what will become of our jobs. Will our children dream of the same jobs we dreamed once before? Will they require the same studies we had to follow to reach our actual positions? Will our jobs still exist by the time we reach the pension, or will we need to reinvent everything that we know of? The authors do not have an answer to these questions; what they can do is only make educated guesses about what is about to come and be ready for it. In this last chapter, the authors see what experts think our future will look like and give their educated opinion in what to invest in our lifelong learning journey to be on top of this unprecedented disruption of the economy.

It is so! (if you think so!) – IT professionals’ social representation of cloud computing

2020 ◽  
Vol 30 (3) ◽  
pp. 889-923 ◽  
Author(s):  
Luiz Antonio Joia ◽  
Gustavo Marchisotti
Keyword(s):  
Cloud Computing ◽  
Business Models ◽  
Emerging Countries ◽  
Social Representation ◽  
Theory And Practice ◽  
It Professionals ◽  
Content Type ◽  
New Business ◽  
The Impact ◽  
New Business Models

PurposeThis study aims to identify the social representation of cloud computing from the perspective of Information Technology (IT) professionals in emerging countries, comparing it with the extant literature on this subject.Design/methodology/approachData were collected from IT professionals in Brazil, which was used as a proxy for the emerging countries’ context related to cloud computing. Social Representation Theory was then applied to analyze the data.FindingsMismatches between theory and practice on cloud computing make it clear that most of the current scientific literature on cloud computing is, to a great extent, based on the context of developed countries rather than on the context of emerging ones.Research limitations/implicationsErrors of inference may have been made during the categorization of the words evoked. Furthermore, Brazil was used as a proxy for the emerging countries’ context related to cloud computing.Practical implicationsIT professionals in emerging countries have quite an operational view of cloud computing. Thus, companies in these countries have to align cloud computing better with new business models and corporate strategies in order to take advantage of the transformational impacts of cloud computing.Originality/valueIT professionals in emerging countries have failed to notice the strategic value of cloud computing, the new business models enabled by same, the privacy issues related to it and the impact cloud computing adoption can have on the IT costs of an organization. Moreover, mobility can be a paramount issue related to cloud computing in emerging countries – a fact thus far overlooked by academia.

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