Business Strategy and Innovation Framework
5 INDUSTRIAL IOT BUSINESS MODEL INNOVATION
Once an enterprise has established an IIoT strategy and corresponding goals , it should put robust systems in place to actively identify , assess and initiate IIoT opportunities .
The best approach to generating ideas and managing new opportunities includes optimization measures and business model innovation . We use here Alexander Osterwalder and Yves Pigneur ’ s definition of a business model , in which “ a business model defines the rationale of how an organization creates , delivers , and captures value .” [ AO1 ]
With increased digitization , we observe a shift from linear value chains to value creation within a network of stakeholders , both internal and external . As a result , multiple interested parties will need to streamline their efforts to maximize value for the target customer and end user . It is therefore crucial to think in terms of ‘ value networks ’ when defining business models . The following diagram illustrates the specific nature of an IIoT business model :
Figure
5-1 : The specific nature of IIoT business models ( Source : Bosch Software Innovations , 2016 )
Because of the prominent role of IT in the IIoT , it will be even more important to close any gaps or adjust any misalignments that exist between business and IT groups within an organization . In the following sections , we will present a number of common methodologies and techniques that will help enterprises to align these domains .
One approach that enterprises may find helpful when pursuing ideas and designing business models is the IoT Business Model Builder developed by the University of St . Gallen and Bosch Software Innovations [ BSI1 ]. Although this procedure model relates to the wider IoT in general ,
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