Effects of Industry 4.0 on Business Models

Case of the Finnish Industry

Abstract

This research investigates the effects of Industry 4.0 (I4.0) on business models arising from the deployment of I4.0 technologies in the Finnish industry landscape. The study attempts to answer a key question that how the implementation of I4.0 technologies influence the business models of companies. The research avails qualitative and explorative research method using semi-structures interviews as empirical evidence from the Finnish industries. The results suggest that organizations are eliminating old ways of conducting businesses. New ways and manners are being tested and used to gain sustainable desired economic advantages over competitors. Within the scope of business model canvas, value proposition takes the lead. This factor means enhancing performance of business operations to offer customized solutions often within autonomous operations and closed-loop manufacturing. This factor is followed by customer relationships and partnerships. The other two factors which are considered important include revenue and resources. Nowadays, organizations use advanced machines which collect data from their day-to-day operations. Data analysis provides avenues for developing new solutions and services for customers belonging to various industrial sectors including health sciences, telecommunication, maintenance facilitation and consultation. With I4.0 in place, solution providers can offer customized solutions to their customers based on their specific business needs. In order to avoid competition, the Finnish service and solution providers tend to develop strong relationships with their customers. At the same time, organizations are trying to reduce heavy investments for the implementation of I4.0.