Industry 4.0 impact on business models of Finnish industries
Khan, Muhammad Irshan (2022)
2022
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2022120125702
https://urn.fi/URN:NBN:fi:amk-2022120125702
Tiivistelmä
Industry 4.0 deployment has been enabling new opportunities for industries to extend their traditional businesses. However, less research has been done to analyze industry 4.0 impact on industries’ business models. The thesis project analyzed the impact of industry 4.0 deployment on Finnish industries.
The research used a qualitative research method using a combination of primary and secondary data. The primary data was collected from seven interviews conducted with industries’ solution providers, of ports and terminals, mining, pulp and paper, agriculture industries, industrial manufacturers, and system integrators. The secondary data was used from the literature and public resources of the industries. The research results highlighted that industry 4.0 has been changing the market structure, creating integrated value-creation networks and ecosystems which are significantly impacting industries’ business models and strategies. Industries have been analyzing their role in the new environment created by Industry 4.0. The new market structure is changing the competition among industries. On one hand manufacturers, partners, suppliers, and customers are collaborating for the creation of an ecosystem. On the other hand, this collaboration could be a source of affecting competitive forces of bargaining power of buyers and suppliers, rivalry among competitors, and threats of the new entrant. Industries have been observing significant changes in five business model components of value propositions, customer relationships, revenue streams, key partners, and key resources.
Moreover, research results highlighted connectivity and computation networks as key enablers and areas for future development for the deployment of I4.0 in Finnish industries. The connectivity and computation need has been growing for industries especially the need for private wireless networks for connectivity and hybrid computation networks consisting of embedded computing, edge computing, and cloud for industrial applications. The areas of future development are identified in improved security solutions, standardization, and availability of human resources capable of working in I4.0 enabled environment. Industries see a key role of the Finnish government in contributing to areas of future development by working with different organizations in Finland and working with other European countries
The research used a qualitative research method using a combination of primary and secondary data. The primary data was collected from seven interviews conducted with industries’ solution providers, of ports and terminals, mining, pulp and paper, agriculture industries, industrial manufacturers, and system integrators. The secondary data was used from the literature and public resources of the industries. The research results highlighted that industry 4.0 has been changing the market structure, creating integrated value-creation networks and ecosystems which are significantly impacting industries’ business models and strategies. Industries have been analyzing their role in the new environment created by Industry 4.0. The new market structure is changing the competition among industries. On one hand manufacturers, partners, suppliers, and customers are collaborating for the creation of an ecosystem. On the other hand, this collaboration could be a source of affecting competitive forces of bargaining power of buyers and suppliers, rivalry among competitors, and threats of the new entrant. Industries have been observing significant changes in five business model components of value propositions, customer relationships, revenue streams, key partners, and key resources.
Moreover, research results highlighted connectivity and computation networks as key enablers and areas for future development for the deployment of I4.0 in Finnish industries. The connectivity and computation need has been growing for industries especially the need for private wireless networks for connectivity and hybrid computation networks consisting of embedded computing, edge computing, and cloud for industrial applications. The areas of future development are identified in improved security solutions, standardization, and availability of human resources capable of working in I4.0 enabled environment. Industries see a key role of the Finnish government in contributing to areas of future development by working with different organizations in Finland and working with other European countries