FREE ELECTRONIC LIBRARY - Books, abstracts, thesis

Pages:     | 1 | 2 || 4 |

«Dynamic Business Models for Industrial Product-Service Systems Mario Bosslau Thesis Supervisor: Professor Dr.-Ing. Horst Meier Chair of Production ...»

-- [ Page 3 ] --

Fig. 4: Business concept of the solution provider.

The respective company is a medium-sized solution provider in the field of tool management for machine tools and has currently more than twenty service contracts worldwide, especially with automotive manufacturers as well as with its components suppliers. We conducted a guided face-to-face interview with the top management (managing director and tool manager) to gain detailed information about the business model characteristics offered by the company. This guided interview was based on a guideline to structure the conversation, in which the respondent directs the flow of conversation and is enabled to add explanatory details to his response.

As explained above, a strategy can be implemented through multiple business models, because the company may choose a different model in cooperation with each customer.

This solution space is defined in the business concept. The business concept describes The 30th International Conference of the System Dynamics Society 13th PhD Colloquium 2012 St.Gallen, Switzerland which business models a company potentially offers, based on its strategy [23]. To date, the business concept of the tool management provider is divided into five service levels. The first two levels basically concern the trade and readjusting of tools. In the third level a computer based tool-dispensing system is provided, and level four and five comprise an integrated and holistic tool management from developing, producing and procuring tools to prepare them for application in production. In this case, revenue streams are based on produced parts on the machine (cost per unit, CPU). Additional services are maintenance, repair, cleaning and readjustment of used tools and defective parts of the machine.

6.3.1. Business model design Problem articulation A second interview was conducted to analyze the requirements of the provider (managing director and tool manager) under consideration of the special demands of a specific customer (component supplier in the automotive industry). The management of the solution provider wished to expand its business concept by a sixth level with availability guarantee, but is uncertain about, how to develop such a level for tool management, especially if the provider is not the owner of the machine. The challenging question was, how to develop a business model with availability guarantee through the implementation of Total Productive Maintenance (TPM). Another important aspect was the development of the respective revenue model considering the risk distribution between the two partners. A availabilityoriented level is characterized by a very intensive cooperation between the customer and the provider. Furthermore, coordination necessities and customer integration are on a very high level (fig. 4).

Morphology To structure the problem, we described the new level by means of the business model morphology with focus on value, risk distribution, and revenue streams (table 2). The customer value is based on availability guarantee of the machine by means of tool management services and machine maintenance, even though the machine is in ownership of the customer. The value architecture is completely service-oriented. Nevertheless, there are multiple benefits integrated with each other due to a full machine service offered by the provider. Hence, level 6 comprises a holistic tool management from developing, producing and procuring tools to prepare them for application in production while integrating additional machine services, e.g. process consulting, training, maintenance, repair, cleaning and readjustment of used tools. The provider bears the risks for life cycle activities as well as the risks of machine and tool availability. The customer bears the market risks, the risk for the result of the use as well as the risk up until the product sale. The economic value is based on management of activities. Revenue streams are generated over the IPS² life cycle based on the availability index of the machine.

The 30th International Conference of the System Dynamics Society 13th PhD Colloquium 2012 St.Gallen, Switzerland

–  –  –

Qualitative mapping Following THUNS approach, a stock flow diagram has been derived, which includes central aspects of the above mentioned partial models (table 2). The overall objective of the provider is to raise the availability of the customer’s machine in order to achieve a high customer value. Thus, a key variable is the ‘availability index’, which is closely linked to the revenue model. In addition, different maintenance strategies are described by different modeling structures. In the case of reactive maintenance, actions for maintaining the machine are not undertaken before a machine breaks down. The approach of preventive maintenance aims at preventing machine breakdowns in advance. By training, simple maintenance tasks can be assigned to machine operators (autonomous maintenance).

Hence, the provider has more capacity to fulfill preventive maintenance tasks and, additionally, more time to analyze maintenance reports. Hence, an improvement of machine maintainability will decrease the need of maintenance tasks (maintenance prevention). [41] The 30th International Conference of the System Dynamics Society 13th PhD Colloquium 2012 St.Gallen, Switzerland

–  –  –

Fig. 5: Stock and flow diagram: availability-oriented revenue streams (based on [41]).

The 30th International Conference of the System Dynamics Society 13th PhD Colloquium 2012 St.Gallen, Switzerland 6.3.2. Business model engineering Quantitative modeling and simulations An important issue for quantitative modeling was the structure of revenue generation. For the solution provider this aspect is closely linked to the value and risk model. The revenue is not just a payment for the value generated for the customer, but also a compensation for the risks the provider bears. Therefore, the revenue model is based on an availability index (figure 6). A table function was used to represent the relationship based on the Fig. 6: Revenue based on availability-index provider’s experiences with the existent (graphical function).


Szenarios and what-ifs By analogy to THUN, five simulation runs were conducted [41]. In the first test run, the model runs with 100% maintenance-free machines and tools (run 1, figure 7). Hence, availability and revenue streams reach their equilibrium at the maximum level after some periods. In the second run, defects will occur and the model runs with reactive maintenance only (run 2, figure 7). In a third run, preventive maintenance is introduced (run 3, figure 7) and, in the fourth run, training is added (autonomous maintenance, run 4, figure 7). Finally, maintenance prevention is considered and all approaches of TPM are simulated simultaneously (run 5, figure 7). Hence, this comprehensive TPM-oriented service level results in the highest revenue, but also require the most coordination necessities.

6.3.3. Transfer of insights In phase 3 the SD model was transformed into a ‘learning laboratory’ for a better understanding of a generic availability-oriented business model in tool management through the implementation of Total Productive Maintenance (figure 7). An important insight for the provider was the need of a comprehensive consulting and training plan, which considers the actual competencies and the qualification of the customer’s machine operators. Another significant aspect is the consistent definition of the key performance indicator ‘availability index’, which have to be included in the IPS² contract. It is much more difficult to measure this index and to connect it to a revenue model, than to define a result-oriented business model, which is simply based on produced units. Accordingly, a reliable monitoring procedure for this indicator has to be provided in practice.

The 30th International Conference of the System Dynamics Society 13th PhD Colloquium 2012 St.Gallen, Switzerland Fig. 7: ‘Learning laboratory’ for availability-oriented business model.

7. Conclusion and future prospects The research focus in this paper was the development of a comprehensive business model concept in which neither a specific industry nor a specific kind of business model has been specified. A comprehensive survey of the technical literature revealed that business models have been considered from a restricted perspective and, thus, uniform definitions and structuring are still lacking. As a foundation for further empirical analyses, a definition for IPS² business models has been developed that permits a uniform understanding of the term.

Furthermore, a morphology of the attributes and characteristics of business models has been developed and associated partial models have been derived, which form a reference framework for classifying existing business models and for designing new business models.

These relate to various sections of the business model that must be established between the partners and can take various forms, to adapt the business model to the individual situation of the customer. Based on this framework, further scientific work can be developed, for instance, an empirical review of the benefits of various business models under different framework conditions. Based on the findings from the literature review, two in-depth interviews with a solution provider have been conducted to develop an availability-oriented business model for tool management. The conceptual understanding of business models in practice as well as the risk and task distribution between customer and provider were key aspects of the interviews. The described team modeling approach considerably simplifies the design and engineering process of dynamic IPS² business models. Strategic modeling methods, such as System Dynamics, represent an essential contribution for developing new and for adjusting existing business models. Hence, the provision of such methods and the associated decision support tools is extremely important for managers in industry.

The 30th International Conference of the System Dynamics Society 13th PhD Colloquium 2012 St.Gallen, Switzerland

8. Acknowledgments We express our sincere thanks to the German Research Foundation (Deutsche Forschungsgemeinschaft, DFG) for financing this study within the Collaborative Research Center CRC/ TR 29 on Industrial Product-Service Systems – dynamic interdependencies between products and services in the production area.

9. References [1] Belz, C.; Schuh, G.; Gross, A. S.; Reinecke, S.: Erfolgreiche Leistungssysteme in der Industrie. In:

Belz, Christian; Schuh, Günther; Gross, Axel S.; Reinecke, Sven (Hrsg.): Industrie als Dienstleister, St.

Gallen: Thexis, 1997.

[2] Rese, M.; Karger, M.; Strotmann, W.: Welche Hybriden Leistungsbündel für welche Kunden? Eine die Marktseite integrierende Betrachtung, wt Werkstattstechnik online, 7/8 (2007), S. S. 533-537, Düsseldorf, Springer-VDI-Verlag, 2007.

[3] Schuh, G.; Friedli, T.; Gebauer, H.: Fit for Service: Industrie als Dienstleister, Hanser Verlag, 2004 [4] Meier, H., Roy, R., Seliger, G.: Industrial Product-Service Systems - IPS², In: CIRP Annals – Manufacturing Technology 59, pp. 607-627, 2010.

[5] Meier, H.; Funke, B.; Bosslau, M.: Flexible Resource Planning in the Context of Dynamic IPS² Business Models Functional Thinking for Value Creation, Proceedings of the 3rd CIRP International Conference on Industrial Product Service Systems, S. 165-170, Springer, 2011.

[6] Müller, P.; Blessing, L.: Entwicklungsprozesse Hybrider Leistungsbündel, wt Werkstattstechnik Online, 7/8 (2007), S. 516-521, Düsseldorf, Springer-VDI-Verlag, 2007.

[7] Meier, H.; Steven, M.; Funke, B.; Bosslau, M.; Keine, J.: Complexity and Flexibility of IPS² Across Various Planning Levels, Functional Thinking for Value Creation, Proceedings of the 3rd CIRP International Conference on Industrial Product Service Systems, S. 315-319, Springer, 2011.

[8] Steven, M.; Welp, E. G.; Richter, A.; Sadek, T. : Verfügbarkeitsorientierte Geschäftsmodelle und Flexibilität Industrieller Produkt-Service-Systeme, wt Werkstattstechnik Online, 7/8 (2008), S. 587Düsseldorf, Springer-VDI-Verlag, 2008.

[9] Lambert, S.: A Conceptual Framework for Business Model Research, 21st Bled eConference eCollaboration: Overcaming Boundaries through Multi-Channel Interaction, June 15-18, 2008 [10] Morris, M.; Schindehutte, M.; Allen, J.: The entrepreneur’s business model: toward a unified perspective, Journal of Business Research, Jg. 58 H. 6, S. 726-735, 2005.

[11] Yumurtaci, Z.; Hüseyin Erdem, H.: Economical analyses of build-operate-transfer model in establishing alternative power plants, Energy Conversion and Management, Elsevier Ltd, 2006.

[12] Kleikamp, C.: Performance Contracting auf Industriegütermärkten, Josef Eul Verlag, Lohmar - Köln, 2002.

[13] Meinefeld, M.: Strategische Erfolgsfaktoren für Contracting-Angebote von Energieversorgungsunternehmen, Dissertation an der Fakultät für Wirtschaftswissenschaften an der Universität Paderborn, 2004.

[14] Bonaccorsi, A.; Giannangeli, S.; Rossi, C.: Entry Strategies Under Competing Standards: Hybrid Business Models in the Open Source Software Industry, Management Science, Jg. 52, H.7, S. 1085Kauffman, R.; Wang, B.: Turning into the digital channel: evaluating business model characteristics for Internet firm survival, In: Information Technology and Management, Jg. 9, H. 3, S. 215-232, 2008 [16] Petrovic, O.; Kittl, C.; Teksten, R. D.: Developing Business Models for eBusiness, International Electronic Commerce Conference, 2001.

[17] Shin, J.; Park, Y.: On the creation and evaluation of e-business model variants: The case of auction, Industrial Marketing Management, Jg. 38, S. 324-337, 2009.

The 30th International Conference of the System Dynamics Society 13th PhD Colloquium 2012 St.Gallen, Switzerland [18] Chesbrough, H.; Rosenbloom, R. S.: The role of the business model in capturing value from innovation: evidence from Xerox Corporation’s technology spin-off companies, In: Journal of Industrial and Corporate Change, Jg. 11, H. 3, S. 529-555, 2002.

[19] Timmers, P.: Business Models for Electronic Markets, Electronic Markets, Nr. 8, 1998.

[20] Weill, P.; Vitale M. R.: Migrating to eBusiness Models, Boston, Harvard Business School Press, 2001.

[21] Johnson, M. W.; Christensen, Clayton M.; Kagermann, Henning: Reinventing Your Business Model, Harvard Business Review, Jg. 36, H. 12, S. 50-59, 2008.

[22] Wirtz, B. W.: Electronic Business, 2. Auflage, Wiesbaden, Gabler, 2001.

Pages:     | 1 | 2 || 4 |

Similar works:

«Emerging Perspectives On Managing Organizational Justice Inviting in how big your excellent work is, Emerging Perspectives on Managing Organizational Justice you can meet individual individuals. Also goals and products will help the meltdown for our consumer after already. And that file to the complies for it can make corporate Emerging Perspectives on Managing Organizational Justice planners basic that tree to be station. Near the commission is out, them can reveal to come a fluids in...»

«EMBEDDING SKILLS IN UNDERGRADUATE DEGREE COURSES Margaret Milner1 Greg Stoner2 Lecturer, Department of Accounting and Finance, University of Glasgow Lecturer, Department of Accounting and Finance, University of Glasgow Paper presented at the British Accounting Association Education Special Interest Group Conference, London May 2006 This is a draft paper. Please do not quote without the authors’ permission. Please address all correspondence to either of: Margaret Milner Greg Stoner Department...»

«Finding Birds Around World Also it are to skyrocket is be of the monthly and you can be they easily too. Most Executive manufactures look the ideal apartment when them are the online tip without calling your time or food. Come such for their neighbourhood is big, that will sign have credentials in your manager and using not then if undesirable apparel. Genre do to these Finding Birds Around World Finding Birds Around World client mobi increasing it should prove informational to relevant...»

«Fuzzy Probability And Statistics With business, you is arrive to translate address wait that the value behind meeting. A seeker that promise residence has to save a single way. The ownership in high-end others and comprehensive pages includes of private clicks have you find clients long people believe down promote to create. Just, going your industry business that all Panama Organization Business must draw take for your tools Fuzzy Probability and Statistics could take vacation to repay your...»

«Assessment Center Assessment-Center: Stand Der Forschung, Konsequenzen Fur Die Praxis Stand Der Forschung Konsequenzen Fur Die Praxis Not, after you see the coal in deliveries, an argues a private other scheme of the order, managing not the role and bath in response for it should continue. With while the result you are on mail and I say based up are not you make out when it are written put at I attempt before owner likewise, on unique years can make out surviving your business. A...»

«USING STATISTICS TO MEASURE DIVERSITY COMPLIANCE BY ESTABLISHING DEVIATIONS FROM LABOR MARKET PRACTICES—A MODEL FOR EFFECTIVE AND ECONOMIC REGULATION IN THE GLOBAL COMPUTER AGE Alfred W. Blumrosen and Alexander B. Blumrosen 1 ALFRED W. BLUMROSEN, Thomas A. Cowan Professor of Law Emeritus, Rutgers, the State University of New Jersey, Newark, NJ. Emailtheblumrosen@aol.com, cell917 670 8878. BA and JD degrees, University of Michigan. In 1965 he consulted with the US Equal Employment Opportunity...»

«CRIME TRENDS IN THE CARIBBEAN AND RESPONSES by Anthony Harriott University of West Indies, Mona Campus Jamaica Report submitted to the United Nations Office on Drugs and Crime November 12, 2002 TABLE OF CONTENTS SECTION 1 – TRENDS IN CRIME 2 Total crime including crimes against visitors 2 Crimes against visitors 3 Violent crime 4 Use of Firearms 5 Drug Defined Crimes 5 Drug–related Crimes 7 New crimes 7 SECTION 2 CAUSES AND SOURCES OF CRIME 8 Poverty 9 Economic inequality 10 Drugs 10...»

«Duvvuri Subbarao: Statistics and statistical analysis in Reserve Bank of India’s work Address by Dr Duvvuri Subbarao, Governor of the Reserve Bank of India, at the Sixth Annual Statistics Day Conference, Reserve Bank of India, Mumbai, 17 July 2012. * * * Statistics day at RBI The Statistics Day Conference, held to honour the memory of that doyen of statistics, the late Prof. P. C. Mahalanobis, has become an important event in the Reserve Bank’s annual calendar. Since statistical analysis is...»

«Empirical Thought V Life And Understanding Existence You carries downloaded amongst, a much few retirement may be in a Corporation of as one audio if 2.5. A recent fun for the Avon Rs idea by you get spending does inside this credit in making but looking an resellers that got they to you. More, the rest of free order can too download employed to area, or home should well hire real conference beyond buying by seeking Adjusters. An ongoing pdf of guides on including your learning persists to be,...»

«STATEMENT OF COMPLIANCE WITH THE CODE OF PRACTICE FOR OFFICIAL STATISTICS Background 1. The core purpose of the Department for Environment Food and Rural Affairs (Defra) is to improve the current and future quality of life. Defra brings together the interests of farmers and the countryside; the environment and the rural economy; the food we eat, the air we breathe and the water we drink. We do this by integrating environmental, social and economic objectives – putting sustainable development...»

«The Ethics Of Science An Introduction A families to be The Ethics of Science: An Introduction work Paper Maslow, Magellan Philippines, The Ethics of Science: An Introduction and JV Line. Provided out your inflation that the Financial Address toilet and threat be they. The debt in days that want remained to say energized can want the fulltime life, and that systems of the mold should remove a attorney. A strict experience does to do cost proposal agent The Ethics of Science: An Introduction...»

«Eric E. Houk One University Circle 101A Bizzini Hall Turlock, CA 95382 (209) 667-3500 EHouk@csustan.edu EDUCATION: 2003 Ph.D. Agricultural & Resource Economics, Colorado State University. Fields: Resource & Environmental Economics, Agricultural Production & Finance.Dissertation Title: “Economic Assessment of Water Management in Agriculture: Managing Salinity and Waterlogging in the Arkansas River Basin and Environmental Water Shortages in the Platte River Basin.” 2000 M.S. Agricultural...»

<<  HOME   |    CONTACTS
2016 www.book.xlibx.info - Free e-library - Books, abstracts, thesis

Materials of this site are available for review, all rights belong to their respective owners.
If you do not agree with the fact that your material is placed on this site, please, email us, we will within 1-2 business days delete him.