Business Model Development and Business Cases

Exploiting the value creation potential of digitization

Companies are constantly facing the challenge of increasing product and process complexity in conjunction with volatile markets and constantly decreasing product, market, and technology cycles. "Industrie 4.0" and the associated digitization of production is therefore often regarded as an enabler and driver for maintaining competitiveness - according to BITKOM, the value-added potential of digitization in production is estimated at 62 billion Euro between 2018 and 2025. To achieve this, value chains must be significantly more flexible and efficient to manufacture complex and individualized products.

However, increasing flexible and versatile production through digitization means: an investment. Since many companies find it difficult to assess the value creation potential for their own production in monetary terms, the uncertainties and risks associated with the investment still hamper digital change.

With its many years of experience in production technology and digitization as well as with comprehensive economic analyses, the Fraunhofer IPT has developed a procedure for identifying use cases in production that are suitable for the implementation of new business models and services.

Identification of business cases

A monetary advantage and the associated business case for manufacturing companies arises in two cases: Either their own range of services provides the customer with the greatest benefit compared to the competition or it can be offered on the market at a more favorable price. In order to lower the price, production must be improved and production costs reduced, for example by increasing employee productivity, increasing plant occupancy rates, reducing set-up times or improving quality.

To identify business cases in companies, the Fraunhofer IPT first conducts a value stream analysis of production processes. Then it is determined at which point and with which digital tools the process chain can be improved. Finally, the economic potential is calculated using classic KPIs such as Return on Invest (ROI) or Break Even Point.  

Development of new business models and services

In addition to higher added value through improvements in production, digitization also offers high economic potential through data-driven business models and services: For example, classic machines and systems can be supplemented by services such as predictive maintenance or predictive quality, which offer a new and continuous source of income. The Fraunhofer IPT develops concepts for such services and supports companies in their implementation.

Our range of services

  • Identification of potential for improvement in production through digitization
  • Determination of the economic potential of digitization using the example of individual use cases
  • Development of new business models and services