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Cost traps in business models 4.0

ESMT Publication
Communications, new business models, pricing models, performance-based prices, customer integration, corporate structures
JEL Code(s)
D23, F23, L11, M31, O33
The traditional business models of industrial enterprises are endangered. Simultaneously, modern data-based technologies enable the development of complex service solutions that can be marketed as innovative business models. By analogy to the application options that are known as Industry 4.0 in Europe we will refer to them as business models 4.0. However, in many cases, the introduction of business models 4.0 is not as successful as expected due to cost overruns. In this paper we have identified nine major cost traps that must be observed for target definition, marketing and implementation. In addition, we highlight measures to help avoid these cost traps.
This publication is also available in German and Chinese.