Siemens' Customer Value Proposition for the Migration of Legacy Devices to Cyber-Physical Systems in Industrie 4.0
Industry is transforming from Industrie 3.0, automation, to Industrie 4.0, digitalization. Siemens intends to be a key player in Industrie 4.0, whose customer value proposition will shape manufacturing industries at customers. This chapter analyzes Siemens' customer value proposition for cyber-physical systems as manufacturing equipment and products in terms of this technology's impact on value. The goal is to identify concrete value drivers which cyber-physical systems technology in Industrie 4.0 brings. The statements about these value drivers belong to Siemens and are compared to operations' management literature. Cyber-physical systems negotiating as peer-to-peer in Industrie 4.0 will bring a new level of complexity. Manufacturing complexity builds complex products. Cyber-physical systems peer-to-peer negotiation decides manufacturing scheduling and brings unprecedented levels of complexity and flexibility. Manufacturing complexity enables new business models, one of which is mass customization.