Analysis of business and finance models in the context of industry 4.0

Abstract

The topic of this thesis addresses the mega trend known as Industry 4.0 form a business model perspective. It is shown that in the case of Industry 4.0 there are multiple dimensions which are relevant in describing the digitalization phenomenon. Some of these dimensions are technological, organizational and also cultural. However, business models represent an important dimension since though a solid strategy defined in the model, the success of delivering digital solutions sustainably to customers and further pushing the digital transformation can be assured. The thesis approaches the topic of business models in the context of industry 4.0firstly from a literature research perspective. Through, this step insights from research papers with respect to different business model architectures are gathered and grouped. In order to provide a further analysis framework, financial aspects of business models are discussed. These imply the selection and definition of financial KPIs which can be used to analyze the performance of a business model. In addition, considerations to investing in digital technologies are also presented .Furthermore, concepts such as a digitalization paradox and the relation between digitalization servitization and firm performance are discussed. In the further part of the thesis, specific use cases are analyzed and described based on the insights gathered in the literature research. Moreover, insights from conducted expert interviews are also analyzed and presented in order to provide a practical view on how business models are implemented in the industry, what challenges were faced and how the models were analyzed from a financial standpoint by industry experts. The insights highlighted in this thesis provide a solid basis with respect to the current business model trend in the industry and can also serve as a source for best practices.