Skip to main content
SpringerLink
Log in

Governance Structures in Next Generation Manufacturing

  • Chapter
  • First Online:
Forecasting Next Generation Manufacturing

Part of the book series: Contributions to Management Science ((MANAGEMENT SC.))

Abstract

Next Generation Manufacturing describes a vision of an open network of sensors, assets, products, and actors which are not restricted to a focal organization or a closed supply chain. A core principle of the digital shadow is that it collects and shares data about the usage of products within and across organizations, allowing them to optimize operations, investment decisions, innovation processes, or the generation of new products. Sharing of usage data, however, requires new forms of governance, both internally and externally. Given the high uncertainty in the likelihood of occurrence and the technical, economic, and societal impacts of these concepts, we conducted a technology foresight study, in the form of a real-time Delphi analysis, to derive reliable future scenarios featuring the next generation of manufacturing systems. This chapter presents the governance dimension and describes each projection in detail, offering current case study examples and discussing related research, as well as implications for policy makers and firms. For example, according to the experts, subscription models for production machines will be the new industry standard by 2030. This is due to the changing needs of manufacturers and customers, as well as the impacts of digitization and Industry 4.0. Customers would benefit from guaranteed machine availability and lower investment costs, while manufacturers would benefit from increased customer satisfaction and longer-term business relationships.

[Abstract generated by machine intelligence with GPT-3. No human intelligence applied.]

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
eBook
USD 16.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 16.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 54.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  • Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120. https://doi.org/gpm.

    Article  Google Scholar 

  • Becker, F., Bibow, P., Dalibor, M., Gannouni, A., Hahn, V., Hopmann, C., … Wortmann, A. (2021). A conceptual model for digital shadows in industry and its application. In International Conference on Conceptual Modeling (pp. 271–281). Springer. https://doi.org/hg45.

    Chapter  Google Scholar 

  • Boudreau, K. (2010). Open platform strategies and innovation: Granting access vs. devolving control. Management Science, 56(10), 1849–1872. https://doi.org/cp9trp.

    Article  Google Scholar 

  • Boudreau, K. J., & Jeppesen, L. B. (2015). Unpaid crowd complementors, the platform network effect mirage. Strategic Management Journal, 36, 1761–1777. https://doi.org/gc8sv6.

    Article  Google Scholar 

  • Braud, A., Fromentoux, G., Radier, B., & Le Grand, O. (2021). The road to European digital sovereignty with Gaia-X and IDSA. IEEE Network, 35(2), 4–5. https://doi.org/hg46.

    Article  Google Scholar 

  • Brecher, C., Butz, F., Kaever, M., Nagel, E., Neus, S., Rettich, T., Steinert, A., Welling, D., Wiesch, M., Zeis, M., & Zeppenfeld, C. (2021). Nachhaltige Geschäftsmodelle für Werkzeugmaschinen. In Internet of production—Turning data into sustainability (pp. 433–462). Fraunhofer-Gesellschaft.

    Google Scholar 

  • Brillowski, F., Dammers, H., Koch, H., Müller, K., Reinsch, L., & Greb, C. (2021). Know-how transfer and production support systems to cultivate the internet of production within the textile industry. In International conference on intelligent human systems integration (pp. 309–315). Springer. https://doi.org/hg47.

    Google Scholar 

  • Burmeister, C., Lüttgens, D., & Piller, F. T. (2016). Business model innovation for industrie 4.0: Why the 'industrial internet' mandates a new perspective on innovation. Die Unternehmung, 2, 124–152. https://doi.org/gh79t7.

    Article  Google Scholar 

  • Catena-X (2021). Catena-X automotive network—the gateway to a digital economy. https://catena-x.net/en/

  • Cennamo, C., & Santalo, J. (2013). Platform competition: Strategic trade-offs in platform markets. Strategic Management Journal, 34(11), 1331–1350. https://doi.org/gc8svs.

    Article  Google Scholar 

  • Chekurov, S., Metsä-Kortelainen, S., Salmi, M., Roda, I., & Jussila, A. (2018). The perceived value of additively manufactured digital spare parts in industry: An empirical investigation. International Journal of Production Economics, 205, 87–97. https://doi.org/gfnbww.

    Article  Google Scholar 

  • Clark, T. H., & Hammond, J. H. (1997). Reengineering channel reordering processes to improve total supply-chain performance. Production and Operations Management, 6(3), 248–265. https://doi.org/dp2tfv.

    Article  Google Scholar 

  • Dattée, B., Alexy, O., & Autio, E. (2018). Maneuvering in poor visibility: How firms play the ecosystem game when uncertainty is high. Academy of Management Journal, 61(2), 466–498. https://doi.org/gdsh4z.

    Article  Google Scholar 

  • Deloitte. (2014). New business models with data. https://ec.europa.eu/futurium/sites/futurium/files/deloitte_pov_new_business_models_with_data.pdf

  • Eisenmann, T., Parker, G., & Van Alstyne, M. W. (2006). Strategies for two-sided markets. Harvard Business Review, 84(10), 92.

    Google Scholar 

  • Fitzgerald, M. (2013). An internet for manufacturing. MIT Technology Review.

    Google Scholar 

  • Gassmann, O., Frankenberger, K., & Csik, M. (2013). Geschäftsmodelle aktiv innovieren. In Das unternehmerische Unternehmen (pp. 23–41). Springer Gabler.

    Chapter  Google Scholar 

  • Gawer, A. (2014). Bridging differing perspectives on technological platforms: Toward an integrative framework. Research Policy, 43(7), 1239–1249. https://doi.org/gc8sc5.

    Article  Google Scholar 

  • Gleim, L., Pennekamp, J., Liebenberg, M., Buchsbaum, M., Niemietz, P., Knape, S., … Wehrle, K. (2020). FactDAG: Formalizing data interoperability in an internet of production. IEEE Internet of Things Journal, 7(4), 3243–3253. https://doi.org/ggqvdf.

    Article  Google Scholar 

  • Gregory, R. W., Henfridsson, O., Kaganer, E., & Kyriakou, H. (2021). The role of artificial intelligence and data network effects for creating user value. Academy of Management Review, 46(3), 534–551. https://doi.org/ggnjt7.

    Article  Google Scholar 

  • Huttunen, H., Seppala, T., Lahteenmaki, I., & Mattila, J. (2019). What are the benefits of data sharing? Uniting supply chain and platform economy perspectives. Uniting Supply Chain and Platform Economy Perspectives.

    Google Scholar 

  • Iansiti, M., & Lakhani, K. (2020). Competing in the age of AI. Harvard Business Review, 98(1), 60–67.

    Google Scholar 

  • Jacobides, M. G., Cennamo, C., & Gawer, A. (2018). Towards a theory of ecosystems. Strategic Management Journal, 39(8), 2255–2276. https://doi.org/gd845g.

    Article  Google Scholar 

  • Jarke, M., Jelassi, M. T., & Shakun, M. F. (1987). MEDIATOR: Towards a negotiation support system. European Journal of Operational Research, 31(3), 314–334. https://doi.org/fxgfx7.

    Article  Google Scholar 

  • Jarke, M., Lenzerini, M., Vassiliou, Y., & Vassiliadis, P. (2002). Fundamentals of data warehouses. Springer Science & Business Media.

    Google Scholar 

  • Kopalle, P. K., Kumar, V., & Subramaniam, M. (2020). How legacy firms can embrace the digital ecosystem via digital customer orientation. Journal of the Academy of Marketing Science, 48(1), 114–131. https://doi.org/gj27r5.

    Article  Google Scholar 

  • Korbel, J. J., Blankenhagel, K. J., & Zarnekow, R. (2019). The role of the virtual asset in the distribution of goods and products. In 25th Americas Conference on Information Systems. Cancun, Mexico.

    Google Scholar 

  • Lenzerini, M. (2019). Direct and reverse rewriting in data interoperability. In International conference on advanced information systems engineering (pp. 3–13). Springer. https://doi.org/hg5c.

    Chapter  Google Scholar 

  • Levitin, A. V., & Redman, T. C. (1998). Data as a resource: Properties, implications, and prescriptions. MIT Sloan Management Review, 40(1), 89.

    Google Scholar 

  • Li, Z. X., & Agarwal, A. (2017). Platform integration and demand spillovers in complementary markets: Evidence from Facebook’s integration of Instagram. Management Science, 63, 3438–3458. https://doi.org/gc8svg.

    Article  Google Scholar 

  • McCarthy, D. M., Fader, P. S., & Hardie, B. G. (2017). Valuing subscription-based businesses using publicly disclosed customer data. Journal of Marketing, 81(1), 17–35. https://doi.org/gfw27t.

    Article  Google Scholar 

  • Meier, H., & Uhlmann, E. (Eds.). (2012). Integrierte Industrielle Sach- und Dienstleistungen: Vermarktung, Entwicklung und Erbringung hybrider Leistungsbündel. Springer Science & Business Media.

    Google Scholar 

  • Mori, D. M. G. (2021). DMG Mori launches subscription business with PAYZR. https://en.dmgmori-ag.com/resource/blob/564672/7138e2982e5897593ce7b68a18f82781/dmg-mori-launches-subscription-business-with-payzr-pdf-data.pdf.

  • Otto, B., & Burmann, A. (2021). Europäische Dateninfrastrukturen—Ansätze und Werkzeuge zur Nutzung von Daten zum Wohl von Individuum und Gesellschaft. Informatik Spektrum, 44, 283–291. https://doi.org/hg5d.

    Article  Google Scholar 

  • Otto, B., & Jarke, M. (2019). Designing a multi-sided data platform: Findings from the international data spaces case. Electronic Markets, 29(4), 561–580. https://doi.org/ggqvq9.

    Article  Google Scholar 

  • Otto, B., Steinbuss, S., Teuscher, A., et al. (2019). IDS Reference Architecture Model Version 3.0. International Data Spaces Association.

    Google Scholar 

  • Parker, G. G., & Van Alstyne, M. W. (2018). Innovation, openness, and platform control. Management Science, 64(7), 3015–3032. https://doi.org/gc8svd.

    Article  Google Scholar 

  • Parker, G. G., Van Alstyne, M. W., & Choudary, S. P. (2016). Platform revolution: How networked markets are transforming the economy and how to make them work for you. WW Norton & Company.

    Google Scholar 

  • Piller, F. T., Van Dyck, M., Lüttgens, D., & Diener, K. (2021). Positioning strategies in emerging industrial ecosystems for industry 4.0. In Proceedings of the 54th Hawaii International Conference on System Sciences (p. 6153). https://doi.org/hgz3.

  • Porter, M. E., & Heppelmann, J. E. (2015). How smart, connected products are transforming companies. Harvard Business Review, 93(10), 96–114.

    Google Scholar 

  • Rappa, M. A. (2004). The utility business model and the future of computing services. IBM Systems Journal, 43(1), 32–42. https://doi.org/bpm854.

    Article  Google Scholar 

  • Riesener, M., Doelle, C., Ebi, M., & Perau, S. (2020). Methodology for the implementation of subscription models in machinery and plant engineering. Procedia CIRP, 90, 730–735. https://doi.org/hg5f.

    Article  Google Scholar 

  • Rolls Royce. (2012). Rolls-Royce celebrates 50th anniversary of Power-by-the-Hour. https://www.rolls-royce.com/media/press-releases-archive/yr-2012/121030-the-hour.aspx

  • Rudolph, T., Bischof, S. F., Böttger, T., & Weiler, N. (2017). Disruption at the door: A taxonomy on subscription models in retailing. Marketing Review St. Gallen, 5, 18–25.

    Google Scholar 

  • Schuh, G., Frank, J., Jussen, P., Rix, C., & Harland, T. (2019). Monetizing industry 4.0: Design principles for subscription business in the manufacturing industry. In 2019 IEEE international conference on engineering, technology and innovation (ICE/ITMC) (pp. 1–9). https://doi.org/ghnw75.

  • Schuh, G., Jarke, M., Gützlaff, A., Koren, I., Janke, T., & Neumann, H. (2022). Review of commercial and open technologies available for industrial internet of things. In D. Mourtzis (Ed.), Design and operation of production networks for mass personalization in the era of cloud technology (pp. 209–241). Elsevier.

    Chapter  Google Scholar 

  • Schuh, G., Riesener, M., Prote, J. P., Dölle, C., Molitor, M., Schloesser, S., … Tittel, J. (2020). Industrie 4.0: Agile Entwicklung und Produktion im Internet of Production. In Handbuch Industrie 4.0: Recht, Technik, Gesellschaft (pp. 467–488). Springer.

    Chapter  Google Scholar 

  • Schuh, G., Salmen, M., Jussen, P., Riesener, M., Zeller, V., & Hensen, T. (2017). Geschäftsmodell-Innovation. In G. Reinhart (Ed.), Handbuch Industrie 4.0: Geschäftsmodelle, Prozesse, Technik (pp. 3–29). Hanser.

    Google Scholar 

  • Stefansson, G. (2002). Business-to-business data sharing: A source for integration of supply chains. International Journal of Production Economics, 75(1–2), 135–146. https://doi.org/c8nkmj.

    Article  Google Scholar 

  • Tukker, A. (2004). Eight types of products—Service system: Eight ways to sustainability? Experiences from SusProNet. Business Strategy and the Environment, 13(4), 246–260. https://doi.org/bpr234.

    Article  Google Scholar 

  • Tzuo, T. (2018). Subscribed: Why the subscription model will be your company's future—And what to do about it. Portfolio/Penguin.

    Google Scholar 

  • Warrillow, J. (2015). The automatic customer: Creating a subscription business in any industry. Penguin.

    Google Scholar 

  • West, J. (2003). How open is open enough?: Melding proprietary and open source platform strategies. Research Policy, 32(7), 1259–1285. https://doi.org/cf6dhc.

    Article  Google Scholar 

  • Wiebe, A. (2017). Protection of industrial data—A new property right for the digital economy? Journal of Intellectual Property Law & Practice, 12(1), 62–71. https://doi.org/ggf2sf.

    Article  Google Scholar 

  • Wiederhold, G. (1992). Mediators in the architecture of future information systems. Computer, 25(3), 38–49. https://doi.org/fvzz7f.

    Article  Google Scholar 

  • Yoffie, D. B., Gawer, A., & Cusumano, M. A. (2019). A study of more than 250 platforms reveals why most fail. University of Surrey.

    Google Scholar 

  • Zhao, Y., Von Delft, S., Morgan-Thomas, A., & Buck, T. (2020). The evolution of platform business models: Exploring competitive battles in the world of platforms. Long Range Planning, 53(4), 101892. https://doi.org/ggmt3p.

    Article  Google Scholar 

  • Zhu, F., & Iansiti, M. (2019). Why some platforms thrive and others don't. Harvard Business Review, 62(1), 118–125.

    Google Scholar 

Download references

Acknowledgment

Funded by the Deutsche Forschungsgemeinschaft (DFG, German Research Foundation) under Germany’s Excellence Strategy – EXC-2023 Internet of Production – 390621612.

Author information

Authors and Affiliations

  1. Laboratory for Machine Tools and Production Engineering (WZL), RWTH Aachen University, Aachen, Germany

    Christian Brecher, Günther Schuh, Annika Becker, Maximilian Kuhn & Marian Wiesch

  2. Chair of Computer Science 5 – Information Systems and Databases, RWTH Aachen University, Aachen, Germany

    Matthias Jarke

  3. Institute for Technology and Innovation Management, RWTH Aachen University, Aachen, Germany

    Frank T. Piller, Ester Christou, Dirk Lüttgens & Marc Van Dyck

  4. Institute for Business Cybernetics (IfU) e.V. at RWTH Aachen, Aachen, Germany

    Frank T. Piller

  5. Institut für Textiltechnik, RWTH Aachen University, Aachen, Germany

    Florian Brillowski

  6. Chair of Process and Data Science, RWTH Aachen University, Aachen, Germany

    István Koren

Authors
  1. Christian Brecher
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Matthias Jarke
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Frank T. Piller
    View author publications

    You can also search for this author in PubMed Google Scholar

  4. Günther Schuh
    View author publications

    You can also search for this author in PubMed Google Scholar

  5. Annika Becker
    View author publications

    You can also search for this author in PubMed Google Scholar

  6. Florian Brillowski
    View author publications

    You can also search for this author in PubMed Google Scholar

  7. Ester Christou
    View author publications

    You can also search for this author in PubMed Google Scholar

  8. István Koren
    View author publications

    You can also search for this author in PubMed Google Scholar

  9. Maximilian Kuhn
    View author publications

    You can also search for this author in PubMed Google Scholar

  10. Dirk Lüttgens
    View author publications

    You can also search for this author in PubMed Google Scholar

  11. Marc Van Dyck
    View author publications

    You can also search for this author in PubMed Google Scholar

  12. Marian Wiesch
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Marc Van Dyck .

Editor information

Editors and Affiliations

  1. Institute for Technology and Innovation Management, RWTH Aachen University, Aachen, Germany

    Frank T. Piller

  2. Institute of Industrial Engineering and Ergonomics, RWTH Aachen University, Aachen, Germany

    Verena Nitsch

  3. Institute for Technology and Innovation Management, RWTH Aachen University, Aachen, Germany

    Dirk Lüttgens

  4. Institute of Industrial Engineering and Ergonomics, RWTH Aachen University, Aachen, Germany

    Alexander Mertens

  5. Institute of Industrial Engineering and Ergonomics, RWTH Aachen University, Aachen, Germany

    Sebastian Pütz

  6. Institute for Technology and Innovation Management, RWTH Aachen University, Aachen, Germany

    Marc Van Dyck

Rights and permissions

Reprints and permissions

Copyright information

© 2022 The Author(s), under exclusive license to Springer Nature Switzerland AG

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Brecher, C. et al. (2022). Governance Structures in Next Generation Manufacturing. In: Piller, F.T., Nitsch, V., Lüttgens, D., Mertens, A., Pütz, S., Van Dyck, M. (eds) Forecasting Next Generation Manufacturing. Contributions to Management Science. Springer, Cham. https://doi.org/10.1007/978-3-031-07734-0_4

Download citation

Publish with us

Policies and ethics

Search

Navigation