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Characterisation of the digital transformation in manufacturing: A holistic Business model framework
KTH, School of Industrial Engineering and Management (ITM), Production engineering, Industrial Production Systems.ORCID iD: 0000-0003-4847-3723
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 [en]
manufacturing, innovation, digital transformation, business model, business model innovation.
National Category
Engineering and Technology
Research subject
Production Engineering
Identifiers
URN: urn:nbn:se:kth:diva-354762ISBN: 978-91-8106-072-0 (print)OAI: oai:DiVA.org:kth-354762DiVA, id: diva2:1905458
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
List of papers
1. A descriptive framework to characterize the manufacturing domain in the context of business models
Open this publication in new window or tab >>A descriptive framework to characterize the manufacturing domain in the context of business models
2019 (English)In: Procedia CIRP, Elsevier BV , 2019, p. 1360-1365Conference paper, Published paper (Refereed)
Abstract [en]

Technological advancements require sound application to deliver their innovation potential. Bringing a new technology to the market involves accounting for infrastructures, network and competences of a firm across a timeframe spanning from short to long term. A growing part of the scientific community addresses this heterogeneous task through the definition of the Business Model (BM). BM is emerging as a separate field of study including all the aspects related with technological application: their definition, use, interconnection and evolution. Nevertheless, BM is a relatively poorly explored area of contribution in the manufacturing domain. This paper delves into specific literature to provide a more extensive characterization of the aspects discussed within manufacturing research through the lens of the BM perspective. Specifically, it contributes to describe the impact of trends such as Servitization and Sustainability which affect the BM´s components and could possibly trigger a Business Model Innovation in manufacturing firms.

Place, publisher, year, edition, pages
Elsevier BV, 2019
Keywords
Business model, Manufacturing, Servitization, Sustainability, Industrial research, Sustainable development, Business model innovation, Business modeling, Manufacturing domains, Manufacturing research, Scientific community, Technological advancement, Technological applications, Manufacture
National Category
Business Administration
Identifiers
urn:nbn:se:kth:diva-280885 (URN)10.1016/j.procir.2019.04.027 (DOI)000566264700232 ()2-s2.0-85068483210 (Scopus ID)
Conference
52nd CIRP Conference on Manufacturing Systems, CMS 2019, 12-14 June 2019, Ljubljana, Slovenia
Note

QC 20200915

Available from: 2020-09-15 Created: 2020-09-15 Last updated: 2024-10-14Bibliographically approved
2. How does Manufacturing Strategy Impact the Goals of a Firm?: A Relational Framework Characterizing the Related Business Models' Components
Open this publication in new window or tab >>How does Manufacturing Strategy Impact the Goals of a Firm?: A Relational Framework Characterizing the Related Business Models' Components
2023 (English)In: Management and Production Engineering Review, ISSN 2080-8208, E-ISSN 2082-1344, Vol. 14, no 2, p. 18-36Article in journal (Refereed) Published
Abstract [en]

The fourth industrial revolution has resulted in technology advancements in the manufacturing industry. However, the innovation potential embedded in these technologies should be unlocked by a viable application, i.e., the business model (BM). The BM as a holistic concept featuring different interacting elements is thus emerging as a promising vehicle for innovation. Current BM research describes the entire domain but lacks depth in the characterization of its individual components. This paper investigates the available manufacturing literature through the lens of the BM concept performing a scientometric analysis. The results are presented in a relational framework that provides an in-depth characterization of the manufacturing element of the BM and highlights identified connections that link the BM components. This is the basis for tools that will support firms in developing manufacturing portfolios aligned with their strategic goals.

Place, publisher, year, edition, pages
Polish Academy of Sciences Chancellery, 2023
Keywords
Business models, Manufacturing model, Scientometric analysis, Topic modelling, Latent Dirichlet Allocation
National Category
Production Engineering, Human Work Science and Ergonomics
Identifiers
urn:nbn:se:kth:diva-334683 (URN)10.24425/mper.2023.146020 (DOI)001044966600002 ()2-s2.0-85167403886 (Scopus ID)
Note

QC 20230824

Available from: 2023-08-24 Created: 2023-08-24 Last updated: 2024-10-14Bibliographically approved
3. Development and application of an Integrated Business Model framework to describe the digital transformation of manufacturing - a bibliometric analysis
Open this publication in new window or tab >>Development and application of an Integrated Business Model framework to describe the digital transformation of manufacturing - a bibliometric analysis
2023 (English)In: Production & Manufacturing Research, E-ISSN 2169-3277, Vol. 11, no 1, article id 2164952Article in journal (Refereed) Published
Abstract [en]

The digitalisation trend is affecting the manufacturing industry byadopting several emerging technologies that can increase the efficiencyand output of production processes and operations. A growingbody of literature shows that this trend demands a structuralrethink of how companies do business. However, there is a lack ofholistic contributions describing how aspects of manufacturing digitalisationalign with the Business Model Innovation process. Thisstudy uses a bibliometric mapping approach to analyse the literatureon manufacturing digital transformation through the IntegratedBusiness Model (IBM) lens. The results identify the major researchtopics discussed in the analysed domain and propose an enrichedIBM framework with specific descriptions and connections amongthe components and their relative strengths. Holistically, the resultingenhanced model may ultimately assist practitioners in understandingthe innovation process of the BM triggered bytechnological shifts in their manufacturing, enabling an alignmentof the manufacturing strategy with IBM’s components.

Place, publisher, year, edition, pages
Informa UK Limited, 2023
Keywords
Business models; digital transformation; manufacturing; bibliometric analysis; Components description and relations
National Category
Production Engineering, Human Work Science and Ergonomics
Research subject
Production Engineering
Identifiers
urn:nbn:se:kth:diva-344520 (URN)10.1080/21693277.2023.2164952 (DOI)000920151300001 ()2-s2.0-85146565059 (Scopus ID)
Note

QC 20240318

Available from: 2024-03-18 Created: 2024-03-18 Last updated: 2024-10-14Bibliographically approved
4. Investigating the impact of digital transformation on manufacturers’ Business model: Insights from Swedish industry
Open this publication in new window or tab >>Investigating the impact of digital transformation on manufacturers’ Business model: Insights from Swedish industry
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
Keywords
Business model, Business model innovation, Digital transformation, Digitalization level, Manufacturing, Semi-structured interviews
National Category
Information Systems
Identifiers
urn:nbn:se:kth:diva-347683 (URN)10.1016/j.joitmc.2024.100312 (DOI)2-s2.0-85195078932 (Scopus ID)
Note

QC 20240613

Available from: 2024-06-13 Created: 2024-06-13 Last updated: 2024-10-14Bibliographically approved

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12345671 of 18
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