The Influence of Critical Factors on Business Model at a Smart Factory: A Case Study

Open access

Abstract

Background: The crucial elements of a smart factory, employees, machines, and products, have an important effect on current business models. Objectives: The main aim of our study is to present a case study of the impact of Industry 4.0 on the business model in a smart factory. The paper discusses the changes of business models of the organisation and determines critical factors that influence the business models in a knowledge society. Methods/Approach: Our sample included managers, from the company TPV, who are in charge of implementing a digital business model, and who are the most knowledgeable informants on the topic of our study. Data was obtained from, most widely used method for data collection in qualitative research, semi-structured interviews with managers. Content analysis was conducted for the purpose of our study. Results: Results of our study show that the major change will be that machines will have a “mind” of their own, whose main goal will be to work in production, and the role of employees will be primarily in expressing their creativity, carrying out urgent interventions and performing custody of processes. The key critical factors influencing business models in a smart factory are top management and leadership orientations, motivation of employees, collective wisdom, creativity and innovations. Conclusions: The study represents useful guidelines for strategic management of innovative companies in the earliest stages of the process of decision-making process.

If the inline PDF is not rendering correctly, you can download the PDF file here.

  • 1. Abdelkafi N. Tauscher K. (2016) “ Business models for sustainability from a system dynamic perspective” Organization & Environment Vol. 29 No. 1 pp. 74-96.

  • 2. Alavi M. Leidner E. D. (2001) “Knowledge management and knowledge management systems: conceptual foundations and research issues” MIS Quarterly Vol. 25 No. 1 pp. 107-136.

  • 3. Aue G. Biesdorf S. Henke N. (2016) “How healthcare system can become digital-health leaders” available at: http://www.mckinsey.com/industries/healthcare-systems-and-services/our-insights/how-healthcare-systems-can-become-digital-health-leaders (18 October 2017)

  • 4. Bernuy A. A. (2011) “Knowledge management and E-business” Revista Campus Vol. 1 pp. 30-36.

  • 5. Capo F. Brunetta F. Boccardelli P. (2014) “Innovative business models in the pharmaceutical industry: A case on exploiting value networks to stay competitive” International Journal of Engineering Business Management Vol. 6.

  • 6. Creswell J. K. (2003) Research design: qualitative quantitative and mixed methods approaches Sage Thousand Oaks CA.

  • 7. Dimovski V. Škerlavaj M. Penger S. Ghauri P. N. Grønhaug K. (2008) Poslovne raziskave/Business research Pearson Essex.

  • 8. Dinu V. (2017) “Total quality management – a way to manage organizations centred on quality” Amfiteatru Economic Vol. 19 No. 11 pp. 936-938.

  • 9. Dominici G. Roblek V. (2016) “Complexity Theory for a New Managerial Paradigm: A Research Framework” in Vrdoljak Raguž I. Podrug N. Jelenc L. (Eds.) Neostrategic Management New York NY: Springer pp. 223-241.

  • 10. Easterby Smith M. Thorpe R. Lowe A. (2007) Management Research: An Introduction Sage Publications London.

  • 11. Eisenhardt K. M. Graebner M. E. (2007) “Theory building from cases: Opportunities and challenges” Academy of Management Journal Vol. 50 No. 1 pp. 25-32.

  • 12. Gamarra C. Guerrero J. M. Montero E. (2016) “A knowledge discovery in databases approach for industrial microgrid planning” Renewable and Sustainable Energy Reviews Vol. 60 pp. 615-630.

  • 13. Haaker T. de Reuver M. Bouwman H. (2018) Do-it-Yourself: Business Model innovation: Hands-on Tools for your Business Makeover TU Delft Library Delft.

  • 14. Heesen B. (2015) Effective Strategy Execution: Improving Performance with Business Intelligence Heidelberg Springer.

  • 15. Hungerland F. Quitzau J. Zuber C. Ehrlich L. Growitsch C. Rische M. C. Schlitte F. Haß H. J. (2015) The Digital Economy Strategy 2030 - Wealth and Life in the Next Generation Berenberg & Hamburg institute of international economics Hamburg.

  • 16. Iansiti M. Lakhani K. R. (2014) “Digital ubiquity: How connections sensors and data are revolutionizing business” Harvard Business Review Vol. 92 No. 11 pp. 91-99.

  • 17. Kane G. C. Palmer D. Phillips A. N. Kiron D. (2015) “Is your business ready for digital future” MIT Sloan Management Review Vol. 56 No. 4 pp. 37-44.

  • 18. Krippendorff K. (2013) Content Analysis: An Introduction to its Methodology Sage publications Thousand Oaks.

  • 19. Lamut U. Macur M. (2012) Metodologija družboslovnega raziskovanja Vega Ljubljana.

  • 20. Lasi H. Fettke P. Kemper H. G. Feld T. Hoffmann M. (2014) “Industry 4.0” Business & Information Systems Engineering Vol. 6 No. 4 pp. 239-242.

  • 21. Marin A. Boanta L. Hadar A. Badea D. (2015) “Business models and competitive advantage for technology transfer entities” The Romanian Review Precision Mechanics Optics & Mechatronics Vol. 48 pp. 103-109.

  • 22. McAdam R. McCreedy S. (1999) “A critical review of knowledge management models” The learning organization Vol. 6 No. 3 pp. 91-101.

  • 23. Michelini L. Fiorentino D. (2012) “New business models for creating shared value” Social Responsibility Journal Vol. 8 No. 4 pp. 561-577.

  • 24. Mosconi F. (2014) The New European Industrial Policy: Global Competitiveness and the Manufacturing Renaissance Routledge London.

  • 25. Myers M. D. (2009) Qualitative research in business and management Sage London.

  • 26. Noor K. B. M. (2008) “Case study: A strategic research methodology” American journal of applied sciences Vol. 5 No.11 pp. 1602-1604.

  • 27. Pelantova V. Šlaichova E. (2017) “The Contribution to the Integration of Management Systems Oriented to the Sustainable and TQM” Amfiteatru Economic Vol. 19 No. 11 pp. 951-965.

  • 28. Roblek V. Erenda I. Meško M. (2018) “The Challenges of Sustainable Business Development in the Post-Industrial Society in the First Half of the 21st Century” in Leon R. M. (Ed.) Managerial Strategies for Business Sustainability During Turbulent Times Hershey IGI Global pp. 1-22.

  • 29. Roblek V. Meško M. Krapež A. (2016) “A Complex View of Industry 4.0” Sage Open Vol. 6 No. 2 pp. 1-12.

  • 30. Roblek V. Meško M. Pejic Bach M. Bertoncelj A. (2014) “Impact of knowledge management on sustainable development in the innovative economy” in Basile G. (Ed.) Systems Thinking for a Sustainable Economy: advancements in Economic and Managerial Theory and Practice Business Systems Laboratory-2nd International Symposium Rome: Universitas Mercatorum.

  • 31. Roome N. Louche C. (2016) “Journeying toward business models for sustainability: A conceptual model found inside the black box of organisational transformation” Organization & Environment Vol. 29 No. 1 pp. 11-35.

  • 32. Russell S. J. Norvig P. (2009) Artificial Intelligence: A Modern Approach (3rd ed.) Prentice Hall Upper Saddle River New Jersey.

  • 33. Schaltegger S. Ludeke-Freund F. Hansen E. G. (2016) “Business models for sustainability: A co-evolutionary analysis of sustainable entrepreneurship innovation and transformation” Organization & Environment Vol. 29 No. 3 pp. 264-289.

  • 34. Solis B. (2017) “The definition of digital transformation” available at: http://www.briansolis.com/2017/01/definition-of-digital-transformation/ (20 January 2018).

  • 35. Sommer A. (2012) Managing green business model transformation Springer Heidelberg.

  • 36. Schultze U. (2002) “On knowledge work” in Holsapple C. W. (Ed.) Handbook on Knowledge Management Vol. 1. Springer Berlin pp. 43-58.

  • 37. Teece D. J. (2007) “Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance” Strategic Management Journal Vol. 28 No.13 pp. 1319-1350.

  • 38. Teece D. J. (2014) “The foundations of enterprise performance: Dynamic and ordinary capabilities in an (economic) theory of firms” The Academy of Management Perspectives Vol. 28 No.4 pp. 328-352.

  • 39. Vitari C. David C. (2017) “Sustainable management models: innovating through Permaculture” Journal of Management Development Vol. 36 No. 1 pp. 14-36.

  • 40. Wang S. Wan J. Zhang D. Li D. Zhang C. (2016) “Towards smart factory for industry 4.0: a self-organized multi-agent system with big data based feedback and coordination” Computer Networks Vol. 101 pp. 158–168.

  • 41. Yin R. K. (2014) Case study research design and methods Sage Thousand Oaks CA.

Search
Journal information
Impact Factor


CiteScore 2018: 0.57

SCImago Journal Rank (SJR) 2018: 0.165
Source Normalized Impact per Paper (SNIP) 2018: 0.388

Metrics
All Time Past Year Past 30 Days
Abstract Views 0 0 0
Full Text Views 308 308 27
PDF Downloads 272 272 38