Monetizing Industry 4.0: Design Principles for Subscription Business in the Manufacturing Industry

Schuh, Günther; Frank, Jana; Jussen, Philipp; Rix, Calvin; Harland, Tobias

doi:10.1109/ice.2019.8792607

Cited by 32 publications

(22 citation statements)

References 7 publications

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“…In SBMs, customers pay for the product or service offered on a recurring basis (Dempsey and Kelliher, 2018;Gassmann et al, 2014;Rappa, 2004), which allows businesses to enjoy predictable and stable revenue. As a result, manufacturing companies are increasingly moving towards SBMs by integrating the concept of servitisation (Aagaard, 2019;Helo et al, 2017;Schuh et al, 2019;Tzuo, 2018).…”

Section: Literature Review 21 Overview Of Subscription-based Business...mentioning

confidence: 99%

“…Subscription models prioritise long-term customer relationships and increase customer value (Lah and Wood, 2016;Sinclair, 2017) by focusing on solving problems and offering customised solutions (Levitt, 1984;Schuh et al, 2019;Tzuo, 2018) and shifting focus from product ownership, albeit, just like in traditional models, customers remain sensitive about both the price and value they receive (Sigala, 2006). The quality of a subscription depends on factors such as skilled staff, price, ease of subscription, security, authenticity of information, convenience, technology usability and reliability (Ganguli and Roy, 2010).…”

Section: Core Characteristicsmentioning

confidence: 99%

“…Although SBMs have many benefits, including convenience, cost savings, and customisation (Erdogan et al, 2020;Schuh et al, 2019), they also face challenges, notably in terms of costs, increasing product usage, customer satisfaction and efforts related to customer retention and churn (McDonald et al, 2023). While businesses are rapidly trying to adopt SBMs, our theoretical understanding of this field remains limited.…”

Section: Introductionmentioning

confidence: 99%

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Uncovering the trends and developments in subscription business models through bibliometric analysis

Sharma,

Sijariya

2023

JSTP

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PurposeThe purpose of this study is to examine the trends and developments of subscription business models (SBMs) over the past two decades.Design/methodology/approachThe study extracted 469 documents (articles and reviews) from the Scopus database during 2000–2022 and analysed 132 documents (articles and reviews). A bibliometric methodology of scientific mapping was employed, including a cluster analysis based on the bibliographic coupling of documents. Content analysis was also conducted to reveal emerging trends in SBMs.FindingsThe study revealed six emerging themes in SBMs related to consumer behaviour, digital advertising, online news media, journal publications, circular economy and sustainability strategies.Originality/valueThe results of this study provide new and unique insights into the development and trends of SBMs over the past two decades and offer guidance for future researchers to investigate further the phenomenon of SBMs in emerging areas.

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Section: Literature Review 21 Overview Of Subscription-based Business...mentioning

confidence: 99%

Section: Core Characteristicsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Uncovering the trends and developments in subscription business models through bibliometric analysis

Sharma,

Sijariya

2023

JSTP

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“…According to Schuh et al (2019), the manufacturing company is one of the sectors that is possible to implement the subscription business model. The implementation requires several major adjustments, there are major changes from short-term revenue to long-term revenue, a new financial model and strategies, and a clear analysis of the rights and obligations between the manufacturer and the customers.…”

Section: Introduction Backgroundmentioning

confidence: 99%

Capital Budgeting Analysis in Coal Hauling Subscription Business Model

Sumawinata

Suryani

Johan

2022

JMBK

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Volatile coal business conditions have become a challenge for coal mining business practitioners, PT ABC is one of them. PT ABC is a market leader for coal mining hauling equipment in Indonesia. Considering this company is owned by a listed mining company, the company name is covered up. One possible solution is to solidify the revenue by adopting the subscription business model. This study aims to assess investment feasibility by providing a capital budgeting analysis to develop the “Subscription Business Model in Coal Mining Business Sector”. The parameter to verify this project will apply IRR calculation, Net Present Value, Payback Period, ROE, and ROI. The result shows that the IRR value is 28,3%, the Net Present Value is IDR 198,8 Bio, the Payback period is 3,4 years, ROE is 509,1%, and ROI is 50,9%. Through this analysis, it is found that the results indicate the business plan is feasible to implement taking into account all required parameters. Kondisi bisnis batubara yang fluktuatif menjadi tantangan tersendiri bagi para pelaku bisnis pertambangan batubara, salah satunya PT ABC. Perusahaan ini merupakan pemimpin pasar untuk peralatan pengangkutan pertambangan batubara di Indonesia. Sehubungan dengan perusahaan ini dimiliki oleh emiten pertambangan, maka nama perusahaan disamarkan. Dalam rangka memperkuat pendapatan, salah satu solusi yang mungkin dilakukan adalah dengan mengadopsi model bisnis berlangganan. Studi ini bertujuan untuk menilai kelayakan investasi dengan memberikan analisis penganggaran modal untuk mengembangkan “Model Bisnis Berlangganan di Bidang Usaha Pertambangan Batubara”. Parameter untuk memverifikasi proyek ini akan menggunakan perhitungan IRR, Net Present Value, Payback Period, ROE, dan ROI. Hasil penelitian menunjukkan nilai IRR sebesar 28,3%, Net Present Value sebesar Rp. 198,8 Bio, Payback Period 3,4 tahun, ROE 509,1% dan ROI 50,9%. Hasil dari penelitian menunjukkan bahwa seluruh aspek penganggaran modal memenuhi parameter yang disyaratkan sehingga rencana bisnis ini layak untuk dilaksanakan.

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“…제품 구독 서비스에 대한 수요는 2018년 기준 과거 5년간 매년 100% 이상 성장한 구 독형 전자상거래 시장의 50%에 달한다 (Chen et al, 2018). 따라서 전통적인 구독 (Schuh et al, 2019), 구독경제란 일정 기간 동안 특정 상품 또는 서비스를 공급받고 그에 대한 대가를 지불하는 거래형태로 정의된다 (Cook & Garver, 2002). Taylor(2003) (Bischof et al, 2020;Lee et al, 2019;Ramkumar & Woo, 2018;Tan & Chen, 2021).…”

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The Difference between Subscription Economy Types and Product Types on Subscription Intention

Kim¹,

Park²

2023

J. Channel Retail.

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Monetizing Industry 4.0: Design Principles for Subscription Business in the Manufacturing Industry

Cited by 32 publications

References 7 publications

Uncovering the trends and developments in subscription business models through bibliometric analysis

Uncovering the trends and developments in subscription business models through bibliometric analysis

Capital Budgeting Analysis in Coal Hauling Subscription Business Model

The Difference between Subscription Economy Types and Product Types on Subscription Intention

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