Abstract
The business activities of traditional industrial companies have commonly focused on products and product-related services. Digital pioneers have evolved their offerings into product-service systems that are networked, intelligent, personalized, and adaptable. The speed at which business models must change continues to be underestimated by many market participants, especially when order books are well filled and the pressure to change appears to be low. Industrial and service companies need to adapt to the changes induced by new market players better today than tomorrow to secure future business success and remain competitive in the digital age. The aim of this article is to intensify the debate on digital business model innovation in industry and the service sector and to enrich it with practical examples of the successful implementation of artificial intelligence in products and services.
Highlights
TO DIGITAL BUSINESS MODEL INNOVATIONSuccessful business models have long been stressed by increasing competitive and cost pressures, breaking down silos, and commoditization of products and services
The more market participants of a certain group are on the platform, the more attractive a platform is for another group of market participants
The article is based on results from two research and accompanying projects conducted at acatech - German Academy of Science and Engineering and funded by the German Federal Ministry for Economic Affairs and Energy [01] and the German Federal Ministry of Education and Research [02], respectively
Summary
TO DIGITAL BUSINESS MODEL INNOVATIONSuccessful business models have long been stressed by increasing competitive and cost pressures, breaking down silos, and commoditization of products and services. This is compounded by new entrants offering entirely new value propositions that will be data-driven and disruptive [4]. This is because once developed, software platforms have process costs that tend toward zero. This makes it easy to aggregate massive amounts of data, learn from data with artificial intelligence, and develop digital business models from it that can scale exponentially across domains and countries. Companies process goods in several stages to create higher-value end products and sell them to consumers. Once a critical mass is reached, a highly interconnected value creation system is formed, which significantly increases the opportunities for market transactions and significantly reduces transaction costs [3]
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
