Image Source: VDI Wissensforum GmbH
Business Models for the Internet of Things
The (industrial) Internet of Things is one of the major topics for industry and academia alike. Smart use of so-called Cyber-Physical Systems (CPS) has the potential to heavily impact industrial productivity, lower production cost, allow to bring back formerly outsourced production to high-wage countries and enable new forms of collaborative value-creation. In the consumer-goods sector, connected devices can change the way we live and interact.
However, there are also a number of challenges to be overcome in order to take full advantage of the potential benefits. Besides the need for technical standards and norms as well as security considerations and the lack of qualification, established business models have to be reviewed and new ones will emerge. While business model innovation is anything but trivial for traditional business concepts, these new paradigms of „everything interconnected“ and „everything as a service“ need their own approach to invest into future business models that are not only technically possible now (pride of the engineer) but also economically promissing.
Within our research we analyze which special factors of Internet of Things will impact – and potentially disrupt – established business models and which elements are the foundation of a solid new business model. In this very practice-oriented research we utilize many of our insights from our more general research on business model innovation.
To gain a better undestanding of the needs of industry, Prof. Frank T. Piller is Chairman of an expert committee at German Association of Engineers (VDI). Together with representatives from a wide variety of companies and academic institutions, this committee works on the identification of critical parameters of business models for the (industrial) Internet of Things. More information about the activities of VDI can be found at vdi.de/industrie40.
For more information about our industry offers regarding the Internet of Things (speaking, dedicated research, consulting…) please contact Christian Gülpen, Head of Digitalization / Industrie 4.0 at RWTH TIM Group!