Business Model Concept In Industry 4.0

Abstract :

Industry 4.0 with its rapid development challenges academic circles to obtain scientific evidence for empirically observed phenomena. Primarily, it relates to traditional business models (BM) conversion processes.

The article reveals an attempt to sort out the BM definition problem, mark out the pillars of BM and its typologies as well as BM requirements, caused by Industry 4.0 development. To this end, we analysed recently introduced BM definitions and found out that mainly they are based on either process or descriptive approach. We prove that both approaches are significant for business-model description.

The review of literature devoted to business model elements revealed the divergent view of scientists on this issue. We suggest three key elements that are universal pillars for all existing business models: value creation, value capture and value offer.

The following issue states the problem of business models typologies. Currently, there are just a few articles dealing with BM types in digital economy. Studied them, we identified four general types of BM: digital communities, service providers, ITCs-based production and digital brokerage.

In the end, we claim three key requirements to Business Model in Industry 4.0. To our point of view, the successful business model ought to be flexible, knowledge-based and smart.