Industry 4.0 and the Emergent Business Models

Abstract

The current technological disruptions characterizing the present business environment require organizations to embrace change in order to drive innovation. Companies must disrupt their existing business models for the purpose of surviving the digital revolution. Changing customer needs and technological innovations solicit businesses to shift from traditional organizational structures towards advanced and sustainable frameworks. The introduction of determined digital technologies and the implementation of innovative business models enable companies to meet market demand and enhance customer satisfaction through the provision of customized products and services designed to suit the needs of consumers.The distinct categorizations explained throughout Chap. 3 have been developed in order to fulfil specific organizational objectives. Companies must develop proper capabilities for the purpose of leveraging the full potential of strategic and business model innovation. Firms have converted their existing business models in order to deliver value to customers while offering advanced solutions to consumers. Digital technologies serve to achieve business model transformation in order to help companies thrive in the digital era.This chapter delves into six unique frameworks pertaining to a specific classification scheme illustrated throughout. The data-driven business model is described first as it represents the model based on which the remaining are developed. The platform business model follows and then the smart factory business model is presented. The servitization business model is described towards the end of the chapter.