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Smart Sensors as Technical Enabler of Pay-per-X Business Models for Original Equipment Manufacturers: A Case Study with a German Sensor-Technology Start-up
KTH, School of Industrial Engineering and Management (ITM).
2022 (English)Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

This thesis aims to investigate a digital, emerging business model, which just enjoys the highest attention in many industrial sectors. The industry 4.0 changes how original equipment manufacturers (OEMs) retain their competitiveness and offer innovative solutions to their customers. Therefore, this master thesis investigates the diverse opportunities of usage-based business models – namely Pay-per-X / Equipment-as-a-Service – from the perspective of a sensor-tech start-up. The company, which can act as a technical enabler for Pay-per-X, is located in Germany and has various markets leading machine and component manufacturers as customers. This projects’ goal is to get an in-depth understanding of the business model and how the company (with their technology) can participate in the market, which is estimated to have a size of 131.2m USD in 2025. Therefore, mainly qualitative research methods have been applied – however, quantitative sections enrich the analysis part of the thesis. Nine expert interviews were conducted, and a calculation tool was developed, which aims to easily convince OEMs of the new business models through modeling a business case, by incorporation of the most relevant parameters. Two use cases were analyzed in the fields of production machines and commercial vehicles. This is followed by a short excursus to a required Pay-per-X cloud software, where requirements were defined based on machine users’ needs. Based on these insights, a positioning strategy for the case company within this field is proposed later-on, which puts emphasis on how the firm can act as a technical enabler for Pay-per-X business models.

Abstract [sv]

Syftet med denna avhandling är att undersöka en ny digital affärsmodell som just nu får stor uppmärksamhet inom många industrisektorer. Industri 4.0 förändrar hur tillverkare av originalutrustning behåller sin konkurrenskraft och erbjuder innovativa lösningar till sina kunder. Därför undersöker denna masteruppsats de olika möjligheterna med användningsbaserade affärsmodeller - nämligen Pay-per-X / Equipment-as-a-Service - ur ett startupföretag inom sensorteknik. Företaget, som kan fungera som en teknisk möjliggörare för Pay-per-X, är beläget i Tyskland och har olika marknadsledande maskin- och komponenttillverkare som kunder. Projektets mål är att få en djupgående förståelse för affärsmodellen och hur företaget (med sin teknik) kan delta på marknaden, som beräknas ha en storlek på 131,2 miljoner US-dollar år 2025. Därför har huvudsakligen kvalitativa forskningsmetoder tillämpats - men kvantitativa avsnitt berikar analysdelen av avhandlingen. Nio expertintervjuer genomfördes och ett beräkningsverktyg utvecklades, som syftar till att enkelt övertyga OEMs om de nya affärsmodellerna genom att modellera ett affärscase, genom att införliva de mest relevanta parametrarna. Två användningsfall analyserades inom områdena produktionsmaskiner och kommersiella fordon. Detta följs av en kort utflykt till en nödvändig Pay-per-X-molnmjukvara, där kraven definierades utifrån maskinanvändarnas behov. På grundval av dessa insikter föreslås senare en positioneringsstrategi för fallföretaget inom detta område, som lägger tonvikten på hur företaget kan fungera som en teknisk möjliggörare för Pay-per-X-affärsmodeller.

Place, publisher, year, edition, pages
2022. , p. 80
Series
TRITA-ITM-EX ; 2022:492
Keywords [en]
Pay-per-x, Pay-per-use, Equipment as a Service, Digitalization, Industry 4.0, (Industrial) Internet of Things, Usage-based, Smart Sensors, Sensor technology, Start-up, Case Study, data-driven payment models
National Category
Engineering and Technology
Identifiers
URN: urn:nbn:se:kth:diva-333633OAI: oai:DiVA.org:kth-333633DiVA, id: diva2:1798103
Supervisors
Examiners
Available from: 2023-09-18 Created: 2023-09-18 Last updated: 2023-09-18Bibliographically approved

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