Business Model Development and Innovation

Digitization transforms markets, customers and companies. Those who recognize this change and are prepared to digitize their processes can secure competitive advantages. Together with manufacturing companies, Fraunhofer IPA develops and innovates business models with a consistent focus on services and which offer the customer added value.

Due to the change in value structures across the board in all industries, companies need to develop targeted business models quickly in order to remain profitable. Changing customer needs and the short product life cycles of digital developments call for new concepts for internal processes and a new approach towards customers and the market.

With their technical solutions, German companies are considered to be among the world’s leaders. These solutions and key skills offer companies excellent prospects, not only to stand out from the competition by using Industry 4.0 technologies, but also to achieve cost savings and to position themselves as attractive employers or innovation drivers.

Would you like to gain access to new markets by expanding your portfolio? Satisfy new customer wishes and needs and bind your customers to your company in the long term? Then it's worth taking a look at Everything-as-a-Service business models.

Everything-as-a-Service, or XaaS, combines industrial services as well as physical and digital elements to provide a solution tailored to customer requirements. Your customer can purchase these on a subscription basis. This means, for example, that instead of buying a machine, your customer pays continuously to use your machine.

Many companies are already seizing the opportunities offered by XaaS business models because of the great potential they hold for providers and users alike.

Potential for providers

• Long-term customer loyalty & data-driven customer insights
• Growth in saturated markets by tapping cross-selling/up-selling potential
• Access to new markets through new value propositions
• Better financial planning thanks to recurring cash flows

Potential for users

• Better cost planning and flexibility in cases where production volumes fluctuate
• Shift from CAPEX to OPEX: low barrier to entry (procurement even in times of crisis)
• Focus on core business by reducing complexity