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Investigating the impact of digital transformation on manufacturers’ Business model: Insights from Swedish industry
KTH, School of Industrial Engineering and Management (ITM), Production engineering, Industrial Production Systems.ORCID iD: 0000-0003-4847-3723
KTH, School of Industrial Engineering and Management (ITM), Production engineering, Industrial Production Systems.ORCID iD: 0000-0002-0723-1712
2024 (English)In: Journal of Open Innovation: Technology, Market, and Complexity, E-ISSN 2199-8531, Vol. 10, no 2, article id 100312Article in journal (Refereed) Published
Abstract [en]

Digital transformation (DT) triggers a fundamental technological shift in industry enabling the creation of smart and connected factories. DT is not only a technology-driven innovation approach: it also requires changes of the Business Model (BM). Despite this, there is a lack of comprehensive studies that examine how aspects of manufacturing digitalisation align with the Business Model Innovation (BMI) process. To address this gap, this paper analyses the DT journey of several Swedish medium and large firms through semi-structured interviews with staff involved in such process. The empirical findings reveal that the BM elements addressing value creation and strategy aspects are the most affected by DT. Additionally, this study identifies the links among such elements. The findings are compiled in a holistic framework that can serve as a blueprint for practitioners seeking to adopt digital technologies in their production environments. This holistic approach aims at supporting practitioners to understand the BMI process triggered by DT and consequently aligning their manufacturing strategy with the BM's components.

Place, publisher, year, edition, pages
Elsevier B.V. , 2024. Vol. 10, no 2, article id 100312
Keywords [en]
Business model, Business model innovation, Digital transformation, Digitalization level, Manufacturing, Semi-structured interviews
National Category
Information Systems
Identifiers
URN: urn:nbn:se:kth:diva-347683DOI: 10.1016/j.joitmc.2024.100312Scopus ID: 2-s2.0-85195078932OAI: oai:DiVA.org:kth-347683DiVA, id: diva2:1869400
Note

QC 20240613

Available from: 2024-06-13 Created: 2024-06-13 Last updated: 2024-10-14Bibliographically approved
In thesis
1. Characterisation of the digital transformation in manufacturing: A holistic Business model framework
Open this publication in new window or tab >>Characterisation of the digital transformation in manufacturing: A holistic Business model framework
2024 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

Digital transformation (DT) is ushering in significant technological advancements that are set torevolutionize the manufacturing industry. As the impact of DT extends beyond enhancing operationalperformance, its correct application necessitates a comprehensive re-evaluation of long-termstrategic business models (BMs). In detail, DT prompts a profound overhaul of how value is created,delivered, and captured within firms, necessitating a process known as business model innovation(BMI). This shift moves beyond incremental improvements traditionally favored in manufacturing,where existing technologies are simply improved or optimized. Instead, today's industry demandsmore radical and structural changes driven by rapid technological progress, shorter product lifecycles,and increasing environmental concerns. These changes require manufacturing innovations that notonly adapt but also transform production systems to ensure competitiveness and sustainability: i.e.,production research must focus not only on technology, but also, and especially on its application.Traditionally, technical literature and innovation-related literature have developed in separate silos,focusing on technical solutions and their market strategies independently. This division is furtherworsened by a lack of proper utilization of the business model (BM) concept, which impedes effectiveintegration between these two critical areas. Recent academic efforts have begun to integrate BMconsiderations into descriptions of the Manufacturing DT process (MDT). However, these discussionsoften focus narrowly on value-capturing mechanisms, such as pay-per-use, subscription, andownership models. A more holistic understanding of the BM, which encompasses all elements of afirm’s strategy and operations, remains relatively underexplored. Addressing this challenge,manufacturing researchers need a framework that allows them to understand and incorporate aholistic business model (BM) approach into their analyses. This is crucial for capturing the fullspectrum of strategic and operational elements of innovation.This dissertation aims to bridge this gap by adopting a broader BM perspective in line with innovationand operational management studies. Through a descriptive analysis of BM components and theirinteractions within the context of DT, this research develops a blueprint that encapsulates how MDTaspects are integrated into the holistic BM and BMI processes. By examining the existing literatureand real-life DT projects in manufacturing companies, this study provides a comprehensiveframework that assists scholars and practitioners in aligning manufacturing strategies with theoverarching components of the BM, facilitating effective navigation through the complexities of BMItriggered by DT.

Abstract [sv]

Digital transformation (DT) inleder betydande tekniska framsteg som kommer att revolutioneratillverkningsindustrin. Eftersom effekten av DT sträcker sig utöver att förbättra operativ prestanda,kräver dess korrekta tillämpning en omfattande omvärdering av långsiktiga strategiskaaffärsmodeller (BM). I detalj ger DT en grundlig översyn av hur värde skapas, levereras och fångasinom företag, vilket kräver en process som kallas affärsmodellinnovation (BMI). Denna förändringgår bortom inkrementella förbättringar som traditionellt gynnas inom tillverkning, där befintligteknik helt enkelt förbättras eller optimeras. Istället kräver dagens industri mer radikala ochstrukturella förändringar drivna av snabba tekniska framsteg, kortare produktlivscykler och ökandemiljöhänsyn. Dessa förändringar tvingar fram tillverkningsinnovationer som inte bara anpassar utanockså omvandlar produktionssystem för att säkerställa konkurrenskraft och hållbarhet: d.v.s.produktionsforskning måste fokusera inte bara på teknik, utan också, och särskilt på desstillämpning.Traditionellt har teknisk litteratur och innovationsrelaterad litteratur utvecklats i separata silos, medfokus på tekniska lösningar och deras marknadsstrategier oberoende av varandra. Denna uppdelningförvärras ytterligare av en brist på korrekt utnyttjande av affärsmodellkonceptet (BM), vilket hindrareffektiv integration mellan dessa två kritiska områden. Den senaste tidens akademiskaansträngningar har börjat integrera BM-överväganden i beskrivningar av Manufacturing DTprocessen(MDT). Dessa diskussioner fokuserar dock ofta snävt på värdefångande mekanismer,såsom modeller för betalning per användning, prenumeration och ägande. En mer holistisk förståelseav BM, som omfattar alla delar av ett företags strategi och verksamhet, är fortfarande relativtunderutforskad. För att möta denna utmaning behöver tillverkande forskare ett ramverk som gör attde kan förstå och införliva en holistisk affärsmodell (BM) i sina analyser. Detta är avgörande för attfånga hela spektrumet av strategiska och operativa inslag av innovation.Denna avhandling syftar till att överbrygga denna klyfta genom att anta ett bredare BM-perspektiv ilinje med innovations- och verksamhetsledningsstudier. Genom en beskrivande analys av BMkomponenteroch deras interaktioner inom ramen för DT, utvecklar denna forskning en ritning somkapslar in hur MDT-aspekter integreras i de holistiska BM- och BMI-processerna. Genom attundersöka befintlig litteratur och verkliga DT-projekt i tillverkningsföretag ger denna studie ettomfattande ramverk som hjälper forskare och praktiker att anpassa tillverkningsstrategier med deövergripande komponenterna i BM, vilket underlättar effektiv navigering genom komplexiteten i BMIsom utlöses av DT.

Place, publisher, year, edition, pages
Stockholm: KTH Royal Institute of Technology, 2024. p. 173
Series
TRITA-ITM-AVL ; 2024:22
Keywords
manufacturing, innovation, digital transformation, business model, business model innovation.
National Category
Engineering and Technology
Research subject
Production Engineering
Identifiers
urn:nbn:se:kth:diva-354762 (URN)978-91-8106-072-0 (ISBN)
Public defence
2024-11-07, F3 / https://kth-se.zoom.us/j/63037170109, Lindstedtsvägen 26-28, Stockholm, 13:00 (English)
Opponent
Supervisors
Available from: 2024-10-15 Created: 2024-10-14 Last updated: 2024-11-01Bibliographically approved

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Boffa, EleonoraMaffei, Antonio

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