Role of Openness in Industrial Internet Platform Providers’ Strategy

Menon, Karan; Kärkkäinen, Hannu; Wuest, Thorsten

doi:10.1007/978-3-319-72905-3_9

Cited by 7 publications

(12 citation statements)

References 15 publications

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“…SMAS will be developed as a scalable open source platform with a high degree of openness and collaboration as shown in Fig. 4 [14]. Manufacturing users will intuitively compare different SMS technologies and services on the platform.…”

Section: Discussionmentioning

confidence: 99%

Towards a Platform for Smart Manufacturing Improvement Planning

Wuest

Kulvatunyou

2018

Advances in Production Management Systems. Smart Manufacturing for Industry 4.0

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The manufacturing industry is transitioning towards smart manufacturing systems (SMS). Small and medium size manufacturers (SMMs) are particularly behind in this transition, plagued by lack of knowledge and resources. Several smart manufacturing capability assessment and maturity models exist to guide the transition. However, support for choosing the right assessment is lacking. This paper proposes a web-based, open source platform for smart manufacturing assessment to support SMMs in this transition. The platform allows for free self-assessments of the current maturity levels and developments of continuous improvement plans that are customized to the manufacturers' unique characteristics. The platform also allows for sourcing of third-party technologies and services relevant to the improvements. More importantly, it will learn, rate, and recommend improvements and services based on past data. The platform is designed to be extensible and scalable to ultimately serve manufacturing enterprises of all industries.

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Section: Discussionmentioning

confidence: 99%

Towards a Platform for Smart Manufacturing Improvement Planning

Wuest

Kulvatunyou

2018

Advances in Production Management Systems. Smart Manufacturing for Industry 4.0

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“…[1,2] Various Industrial internet or industry 4.0 platforms allow the manufacturing companies to manage data and information efficiently in order to implement IoT related technologies to enhance their business and create value for the customers. [3][4][5] Platforms and platform economy has been of increasing academic and industrial interest, both in general as well as in the specific context of industrial internet. Some common topics in platform research include, platform business models [6,7], platform related network effects [6,8], platform openness [9,10], interoperability, lock-in [11], to name few.…”

Section: Introductionmentioning

confidence: 99%

“…In the manufacturing companies' context, platform related openness is considered very important for technology implementation and creating business value. [12][13][14]4] This requirement from the industrial end-users also enforces platform providers to make critical decisions on platform openness. [15,12,5] Industrial internet platform openness has many benefits for manufacturing companies such as, enhanced interoperability with different machines because of open standards, diverse and high end applications made by core as well as third party developers.…”

Section: Introductionmentioning

confidence: 99%

“…[12,16] In our previous work we have discussed the downsides of industrial internet platform openness for platform end-users. [4] Lock-in, which is understood to be one of the long-term downside of openness, can be a result of multiple factors including increased switching costs. However relatively little is known about the impact of switching costs in a B2B context.…”

Section: Introductionmentioning

confidence: 99%

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Is Openness Really Free? A Critical Analysis of Switching Costs for Industrial Internet Platforms

Menon

Kärkkäinen

Wuest

et al. 2018

Product Lifecycle Management to Support Industry 4.0

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The core idea of Industrial Internet, Industry 4.0, Smart Manufacturing and Cyber Physical Systems (CPS) is to utilize Internet of Things (IoT) based technologies and applications for the purpose of enhanced operations productivity. These IoT technologies and applications help companies to integrate their business as well as their engineering, manufacturing and service processes making their operations more robust, efficient and sustainable (green) with supreme quality. Switching cost and openness of the industrial internet (II) platform has many short and long-term impacts on the end-users' business. Hence the openness is often considered to be free or synonymous to open source. The purpose of this paper is to understand and analyze the impact of II-platform's increased openness and its dimensions on switching costs framework. For empirics and to test the developed framework we conducted a training and a workshop, where 11 manufacturing and service industry representatives describe the main types of switching costs that would be impacted because of increased openness of II-platforms. As a managerial implication this new switching cost framework seem to provide a tool to evaluate the specific preferences and potential positive and negative impacts of II openness on their respective businesses.

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“…People -Platform openness and control can be determined by and have an impact on people as actors in platforms (Lee, Lee & Hwang, 2015;Menon, Kärkkäinen & Wuest, 2017;Wang, Guo, Wang & Lou, 2020). The meaning and measurement of openness and control may be different if taken from the perspective of platform sponsors (Stefi, Berger & Hess, 2014), contributors, or end users (Benlian, Hilkert & Hess, 2015;Choi, Nam & Kim, 2018).…”

Section: Openness and Controlmentioning

confidence: 99%

Investigating inter-organisational platform development through the lens of collective action

David¹

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This thesis examines inter-organisational platform development occurring though collective action. Despite much hype about the benefits of platforms, and burgeoning stream of work on the subject in IS literature, IOP development processes and practices that lead to success or failure remain obscure. Some scholars suggest that this is perhaps because of the secrecy associated with such projects. IS literature shows that the development of inter-organisational platforms is plagued by collective action challenges, such as the conflicting interests, heterogenous goals, and coopetition between members. This is mostly encountered in designing important aspects of the platform such as architecture, governance models, and value systems. These challenges make critical mass difficult to achieve, often derailing platform development projects. Thus, it has become crucial to understand how such platforms are developed through collective efforts by multiple organisations. This study addresses the gaps mentioned using a longitudinal case study. There was an opportunity for unusual research access to real time observations of the development processes from inception. This led to collection of a rich dataset from multiple sources. Over two-and-half years, observations were made as 46 organisations such as airlines, airports, visitor experience providers (e.g., canyon swings, ziptreks), private corporates, hotel chains, and government agencies worked together to develop a platform for sharing data resources and services in the tourism sector in New Zealand. Findings indicate that IOP development processes vary in specific areas of development such as the designing of architecture, governance, value systems, and standards. Whilst some processes can be managed through leadership, coordination, and collective organising by a leading organisation in the collective, others require self-organisation to align complementary resources and interests. Apart from processes of activities and actions, we also found that socio-cognitive processes and joint actions between members co-influence each other during design phases. These co-influences can explain how cognitive distances and incongruencies in technology frames of references are resolved. The primary contribution of this study is to have created theoretical building blocks towards a nascent theory of IOP development processes occurring through collective action. These building blocks include specifications of concepts, process models of design & cognitive processes, propositions of process activities & their observed outcomes, and problematisations of key constructs that extend the theoretical boundaries of such concepts as critical mass (the outcome variable in collective action). The research also contributes to platforms and collective action theories by integrating the two areas in investigating the development of inter-organisational platforms. Practical knowledge can be drawn on how IOPs are constructed in conditions of heterogeneity and coopetition requiring collective organising.

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Role of Openness in Industrial Internet Platform Providers’ Strategy

Cited by 7 publications

References 15 publications

Towards a Platform for Smart Manufacturing Improvement Planning

Towards a Platform for Smart Manufacturing Improvement Planning

Is Openness Really Free? A Critical Analysis of Switching Costs for Industrial Internet Platforms

Investigating inter-organisational platform development through the lens of collective action

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