Skip to main content

Moving from Manufacturing to Software Business: A Business Model Transformation Pattern

Part of the Lecture Notes in Business Information Processing book series (LNBIP,volume 378)

Abstract

Regularly changing the business model of an enterprise becomes a necessity for surviving and prospering in the dynamic business world of today. To cope with this task enterprises need tools for Business Model Innovation (BMI). One of such tools can be a library of patterns. While there are attempts to build libraries of patterns of business models, they concern the patterns of to-be models. This paper focuses on the transformational patterns that show how to create a new model based on the current one. It considers a real example of a business model transformation in progress and designs a pattern based on this transformation. The main idea of this pattern can be formulated as “transforming from a manufacturing business to becoming a provider of software services that can predict the needs for maintenance of equipment used in manufacturing lines”. For building the pattern enterprise models before and after transformation have been built and then compared. The modeling has been done using a so-called Fractal Enterprise Model (FEM). FEM ties various enterprise business processes together and connects them to enterprise assets (resources) that are used and/or are managed by the processes. The proposed pattern is also expressed using FEM syntax, but in difference from the concrete models, it is depicted on a much higher abstract level.

Keywords

  • Business model
  • Business Model Innovation
  • Pattern enterprise model
  • Fractal Enterprise Model

This is a preview of subscription content, access via your institution.

Buying options

Chapter
USD   29.95
Price excludes VAT (USA)
  • DOI: 10.1007/978-3-030-40783-4_25
  • Chapter length: 17 pages
  • Instant PDF download
  • Readable on all devices
  • Own it forever
  • Exclusive offer for individuals only
  • Tax calculation will be finalised during checkout
eBook
USD   79.99
Price excludes VAT (USA)
  • ISBN: 978-3-030-40783-4
  • Instant PDF download
  • Readable on all devices
  • Own it forever
  • Exclusive offer for individuals only
  • Tax calculation will be finalised during checkout
Softcover Book
USD   99.99
Price excludes VAT (USA)
Fig. 1.
Fig. 2.

(as appeared in [14]).

Fig. 3.

(as appeared in [14]).

Fig. 4.

(a modified version of Fig. 4 from [14]).

Fig. 5.
Fig. 6.

References

  1. Andreini, D., Bettinelli, C.: Systematic Literature Review. Business Model Innovation. ISAMS, pp. 1–23. Springer, Cham (2017). https://doi.org/10.1007/978-3-319-53351-3_1

    CrossRef  Google Scholar 

  2. Mangematin, V., Ravarini, A., Sharkey Scott, P.: Special issue: business model innovation. J. Bus. Strategy 38(2), 3–5 (2017)

    CrossRef  Google Scholar 

  3. Giesen, E., Berman, S.J., Bell, R., Blitz, A.: Three ways to successfully innovate your business model. Strategy Leadersh. 35(6), 27–33 (2007)

    CrossRef  Google Scholar 

  4. Rumble, R., Minto, N.A.: How to use analogies for creative business modelling. J. Bus. Strategy 38(2), 76–82 (2017)

    CrossRef  Google Scholar 

  5. Osterwalder, A., Pigneur, Y.: Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers. Wiley, Hoboken (2014)

    Google Scholar 

  6. Echterfeld, J., Gausemeier, J.: How to use business model patterns for exploiting disruptive technologies. In: 24th International Conference on Management of Technology, pp. 2294–2313 (2015)

    Google Scholar 

  7. Lodhi, A., Koeppen, V., Wind, S., Saake, G., Turowski, K.: Business process modeling language for performance evaluation. In: HICSS, Waikoloa, pp. 3768–3777 (2014)

    Google Scholar 

  8. Gassmann, O., Frankenberger, K., Csik, M.: The business model navigator: 55 Models that will revolutionise your business. Financial Times Pret. (2014)

    Google Scholar 

  9. Robertson, D., Hjuler, P.: Innovating a Turnaround at LEGO. Harvard Business Review (September) (2009)

    Google Scholar 

  10. Su, Y., Huang, S.: Business Model Innovation with Effective Innovation: An Exploratory Study on TSMC. In: 2006 IEEE International Symposium on Semiconductor Manufacturing, Tokyo, pp. 483–486 (2006)

    Google Scholar 

  11. Bider, I., Perjons, E.: Defining Transformational Patterns for Business Model Innovation. In: Zdravkovic, J., Grabis, J., Nurcan, S., Stirna, J. (eds.) BIR 2018. LNBIP, vol. 330, pp. 81–95. Springer, Cham (2018). https://doi.org/10.1007/978-3-319-99951-7_6

    CrossRef  Google Scholar 

  12. Rolls Royce: Power by Hour. https://www.rolls-royce.com/media/our-stories/discover/2017/totalcare.aspx. Accessed 2017

  13. Bider, I., Perjons, E., Elias, M., Johannesson, P.: A fractal enterprise model and its application for business development. Softw. Syst. Model. 16(3), 663–689 (2017)

    CrossRef  Google Scholar 

  14. Bider, I., Lodhi, A.: Using Enterprise modeling in development of new business models. In: Proceedings of the 21st International Conference on Enterprise Information System (ICEIS) 2019, Heraklion, vol. 2, pp. 525–533 (2019)

    Google Scholar 

  15. ISO: ISO 22400-1:2014. Automation systems and integration – Key performance indicators (KPIs) for manufacturing operations management – Part 1: Overview, concepts and terminology. Standard, International Organization for Standardization (2014)

    Google Scholar 

  16. ISO: ISO 22400-2:2014. Automation systems and integration – Key performance indicators (KPIs) for manufacturing operations management – Part 2: Definitions and descriptions. Standard, International Organization for Standardization (2014)

    Google Scholar 

  17. Etia, M.C., Ogajib, S.O.T., Probertb, S.D.: Reducing the cost of preventive maintenance (PM) through adopting a proactive reliability-focused culture. Appl. Energy 83(11), 1235–1248 (2006)

    CrossRef  Google Scholar 

  18. Davenport, T., Harris, J.: Competing on Analytics: The New Science of Winning. Harvard Business School Press, Brighton (2007)

    Google Scholar 

  19. Eckerson, W.: Predictive Analytics. Extending the Value of Your Data Warehousing Investment. Technical report Q1 (2007)

    Google Scholar 

  20. Lustig, I., Dietrich, B., Johnson, C., Dziekan, C.: The analytics journey: an IBM view of the structured data analysis landscape: descriptive, predictive and prescriptive analytics. INFORMS Analytics Magazine, November–December, pp. 11–18 (2010)

    Google Scholar 

  21. Give Team: Insightmaker. http://insightmaker.com/. Accessed 2014

  22. ADOxx.org: ADOxx. https://www.adoxx.org. Accessed 2017

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Ilia Bider .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and Permissions

Copyright information

© 2020 Springer Nature Switzerland AG

About this paper

Verify currency and authenticity via CrossMark

Cite this paper

Bider, I., Lodhi, A. (2020). Moving from Manufacturing to Software Business: A Business Model Transformation Pattern. In: Filipe, J., Śmiałek, M., Brodsky, A., Hammoudi, S. (eds) Enterprise Information Systems. ICEIS 2019. Lecture Notes in Business Information Processing, vol 378. Springer, Cham. https://doi.org/10.1007/978-3-030-40783-4_25

Download citation

  • DOI: https://doi.org/10.1007/978-3-030-40783-4_25

  • Published:

  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-030-40782-7

  • Online ISBN: 978-3-030-40783-4

  • eBook Packages: Computer ScienceComputer Science (R0)