| 1. |
- Gebauer, Heiko, et al.
(author)
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Growth paths for overcoming the digitalization paradox
- 2020
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In: Business Horizons. - : ELSEVIER. - 0007-6813 .- 1873-6068. ; 63:3, s. 313-323
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Journal article (peer-reviewed)abstract
- Despite the demonstrated opportunities for revenue enhancement through digitalization, companies often experience a digitalization paradox. This paradox suggests that although companies may invest in digitalization, they often fail to achieve the expected revenue enhancement. In reporting research on 52 companies, we make the following fou r contributions: First, we focus on industrial companies in the business-to-business context, which largely have been neglected in previous research on digitalization. Second, we introduce the digitalization paradox as an important phenomenon in the discussion of revenue enhancement through digitalization. Third, we describe three growth paths: (1) commercializing digital solutions, (2) utilizing product connectivity, and (3) establishing an IoT-platform-based application business. For each growth path, the article takes a dynamic perspective on business models, highlighting triggers and modifications in business-model components (including value proposition, value-creation activities, and profit equation). Fourth, while the described modifications require initial investments to let these growth paths develop, we highlight how growth traps can prevent investments in business-model modifications from leading to revenue enhancement and how they can ultimately lead to the digitalization paradox. (C) 2020 Kelley School of Business, Indiana University. Published by Elsevier Inc. All rights reserved.
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| 2. |
- Gebauer, Heiko, et al.
(author)
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How to convert digital offerings into revenue enhancement : Conceptualizing business model dynamics through explorative case studies
- 2020
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In: Industrial Marketing Management. - : Elsevier. - 0019-8501 .- 1873-2062. ; 91, s. 429-441
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Journal article (peer-reviewed)abstract
- Equipment manufacturers are currently utilizing new digital technologies such as the Internet of Things (IoT), Artificial Intelligence, or Big Data, for new digital offerings. However, these offerings seldom enhance revenue, because companies struggle with business model (BM) dynamics. By analyzing 27 companies through an explorative case-study approach, the authors consider how companies can successfully achieve revenue enhancement through digital offerings. The result is a threefold framework for revenue enhancement through digital offerings. First, this framework distinguishes between three phases of BM dynamics: 1) augmenting products through a “hardware plus†logic, 2) developing a portfolio of multiple logics for creating customer value, 3) integrating this portfolio through platform logic. Second, the framework emphasizes that three barriers, which we refer to as confidence, mixing, and collaboration barrier, limit the progress from Phases 1 to 3. Third, the framework reveals that each phase contains certain modifications of BM components. In the first phase, companies adapt their BM components slightly, so as to advance toward a “hardware plus†logic. In the second phase, companies embrace more radical BM innovations in order to convert services into an outcome-based BM and develop a new software subscription BM. In the third phase, companies modify BM components in order to integrate the BMs internally and to open them up for external collaboration partners.
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| 3. |
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| 4. |
- Markfort, Lino, et al.
(author)
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Patterns of business model innovation for advancing IoT platforms
- 2022
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In: Journal of Service Management. - : EMERALD GROUP PUBLISHING LTD. - 1757-5818 .- 1757-5826. ; 33:1, s. 70-96
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Journal article (peer-reviewed)abstract
- Purpose The emergence of Internet of Things (IoT) platforms in product companies opens up new data-driven business opportunities. This paper looks at the emergence of these IoT platforms from a business-model perspective. Design/methodology/approach The study applies a mixed method with two research studies: Study I-a cluster analysis based on a quantitative survey, and Study II-case studies based on qualitative interviews. Findings The findings reveal that there is no gradual shift in a companys business model, but in fact three distinct and sequential patterns of business model innovations: (1) platform skimming, (2) platform revenue generation and (3) platform orchestration. Research limitations/implications The results are subject to the typical limitations of both quantitative and qualitative studies. Practical implications The results provide guidance to managers on how to modify the components of the business model (value proposition, value creation and/or delivery and profit equation) in order to enable platforms to advance. Social implications As IoT platforms continue to advance, product companies achieve better performance in terms of productivity and profitability, and more easily secure competitive advantages and jobs. Originality/value The paper makes three original contributions: (1) it is the first quantitative study on IoT platforms in product companies, (2) identifies three patterns of business model innovations and (3) offers a first process perspective for understanding the sequence of these patterns as IoT platforms advance.
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| 5. |
- Schafer, Fabian, et al.
(author)
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Data-driven business and data privacy: Challenges and measures for product- based companies
- 2023
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In: Business Horizons. - : ELSEVIER. - 0007-6813 .- 1873-6068. ; 66:4, s. 493-504
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Journal article (peer-reviewed)abstract
- To leverage the opportunities provided by the Internet of Things (IoT), product-based companies are exploring new data-driven business opportunities. They may miss these same opportunities, however, owing to data-privacy chal-lenges. These challenges start with the customers of product-based companies, extend to the wider business ecosystem, and continue with the companies them-selves. This article identifies 12 data-privacy challenges and introduces 12 mea-sures to address them. These include intuitive recommendations, such as enabling cross-product consent collection, as well as less intuitive measures, such as fostering a can-do attitude in legal units, closing the gap between legal and busi-ness initiatives, or implementing a clear process for well-reasoned risk-taking. The following four principles were found to support companies in implementing these measures: (1) letting privacy and data-driven business go hand in hand, (2) putting customers first and turning their privacy preferences into opportunities, (3) aligning risk-management activities with the process of digital service development, and (4) using technology to professionalize legal processes.& COPY; 2022 Kelley School of Business, Indiana University. Published by Elsevier Inc. This is an open access article under the CC BY license (http://creativecommons.org/ licenses/by/4.0/).
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