Icdec2020_presentation_slides_17

1. © Chair of automation technology| BTU Cottbus-Senftenberg | Univ. Prof. Dr.-Ing. Ulrich Berger | 2020
DIGITAL BUSINESS MODEL INNOVATION IN SMES
Marc Gebauer, Diana Zeitschel, Cyrine Tangour | 5th
ICDEc | 12th
June 2020
Case studies with DIH support from Brandenburg (Germany)

2. © LS Automatisierungstechnik | BTU Cottbus-Senftenberg | Univ. Prof. Dr.-Ing. Ulrich Berger | 2020 2
AGENDA
§ Digital business model innovation in SMEs
§ Digital business model innovation in Brandenburg (Germany)
§ Innovation centre of modern industry brandenburg
§ Case study approach with BMI paths
§ Case study results – Company A: Growth orientation
§ Case study results – Company B: Profitability orientation
§ Summary and outlook

3. © LS Automatisierungstechnik | BTU Cottbus-Senftenberg | Univ. Prof. Dr.-Ing. Ulrich Berger | 2020 3
DIGITAL BUSINESS MODEL INNOVATION IN SMES
§ Digital technologies hold the potential for business model innnvotion (BMI)
§ Examples of big companies with fast success via digital technologies
§ Different perexquisites of SMEs for BMI
§ Contrast between BMI as an outcome and as a process
§ Contrast evolutionary BMI to revolutionary BMI
§ Aim: How do processes of digital BMI happen in SMEs in Brandenburg?
§ Result: We show two examples where digital BMI as a result can be identified only after
several years of continous implementation processes of digital technologies to different
business model elements.
§ Business model: the logic of a company´s value creation, value capture and value delivery
which can be described by a system of business model elements (Osterwalder/Pigneur
(2010))
§ Business model innovation: “…a process that deliberately changes the core elements of a
firm and its business logic…” (Bucherer et al. (2012))
Sources: Lindgren (2012); Osterwalder/Pigneur (2010); Aargaard et al. (2018); Tangour et al. (2019);
Cosenz/Bivona (2020); Foss/Saebi (2017); www.uber.com, www.amazon.com; www.google.com
vs.
SME
Ideas
Con-
cepts
Proto-
types
Reali-
zation

4. © LS Automatisierungstechnik | BTU Cottbus-Senftenberg | Univ. Prof. Dr.-Ing. Ulrich Berger | 2020 4
DIGITAL BUSINESS MODEL INNOVATION IN BRANDENBURG (GERMANY)
§ SMEs are important for different economies in different areas of the world
§ 99.5% of companies with 54.4% of value added and 63,3% of the persons employed belong to
the category of SMEs
§ More than 90% of companies belong to the cathegory of SMEs in Brandenburg
§ Major potential fields of implementation: According to a survey most companies aim at realizing
digital potentials in logistics and supply chain management (60%), factory layout planning (50%),
production planning and control systems (50%), automation (50%) and enterprise resource
planning (40%)
§ Barriers of digital BMI in SMEs: „...severe resource limitations in terms of management, strategic
capabilities, and finance; high specialization applied to a narrow range of products/services;
reliance on a small number of customers; niche market orientation...“
§ Digital innovation hubs provide SME-specific support
Sources: www.wfbb.de; Bouwman et al. (2019); Ammar/Chereau (2018); European
Commission (2020); Statistisches Bundesamt (2019); Andulkar et al. (2018);
Cosenz/Bivona (2020)

5. © Chair of automation technology| BTU Cottbus-Senftenberg | Univ. Prof. Dr.-Ing. Ulrich Berger | 2020
TECHNOLOGY INNOVATION KNOWLEDGEMENT
Innovation centre of modern industry brandenburg (IMI)
In a "model factory", automation and digitization
solutions exemplify the use of modern
technologies and give impulses for the
optimization of SME's own processes.
The »Innovation Lab« helps to identify innovation
potential in SME's and helps to concretise and
launch project ideas.
The "Knowledge Forum" bundles information
about relevant events, current topics and
interesting facts about automation and
digitization.
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6. © LS Automatisierungstechnik | BTU Cottbus-Senftenberg | Univ. Prof. Dr.-Ing. Ulrich Berger | 2020 6
CASE STUDY APPROACH WITH BMI PATHS
§ General case study information
» Suitable for „how?“ in complex situations or processes
» Data sources: company web sites, newspaper articles, meeting protocols and other
documents from DIH (IMI Brandenburg) support
§ BMI Paths
» General idea:
- BMI is a process of changing business model elements
- BMI paths correlate with strategic goals
- Growth seekers start from the right side
- Profitability seeker start from the left side
» Suitable approach for studying digital BMI in SMEs because of „...often sequential
non-linear and iterative steps...“ (Heikkilä et al. (2018))
Sources: Heikkilä et al. (2018); Osterwalder/Pigneur (2010);
Jahns/Dittrich (2007); Dul/Hak (2007)
Left canvas: Start for profitability
Key partners
Key
activities
Key
resources
Value
proposition
Customer
relationships
Channels
Customer
segments
Cost structure Revenue streams
Wertschöpfungs-
kette
Right canvas: Start for growth
1
1
12 2
3
45
5
Example of BMI path for profitability seeker

7. © LS Automatisierungstechnik | BTU Cottbus-Senftenberg | Univ. Prof. Dr.-Ing. Ulrich Berger | 2020 7
CASE STUDY RESULTS – COMPANY A: GROWTH ORIENTATION
Sources: own elaboration based on comany web sides, meeting protocols,
Heikkilä et al. (2018), Osterwalder/Pigneur (2010)
1. Started BMI with:
• Understand the needs of a few remaining
customers and the products
2. Went on with:
• Online shop for new customers
• ERP system for better
organisation right after the online
shop
• Connected to other IT systems to
handle the great variety of
products
3. Most recent steps:
• Improvement of production processes
• Improvement of factory layout
• Further connnections of IT systems
Overview:
• produces a variety of frames
• Started with 1 employee (2011), now 25
• Produces 100 frames per day (average)
• Growth rate of 30%/year (1,5 Mio. €
turnover/year)
Cooperation with DIH started
• Strategy paper for ERP
connection to other IT
systems
• Connect to network
partners from DIH

8. © LS Automatisierungstechnik | BTU Cottbus-Senftenberg | Univ. Prof. Dr.-Ing. Ulrich Berger | 2020 8
CASE STUDY RESULTS – COMPANY B: PROFITABILITY ORIENTATION
Sources: own elaboration based on comany web sides, meeting protocols,
Heikkilä et al. (2018), Osterwalder/Pigneur (2010)
1. Started with:
• Build modern production facility
• CNC and CAD/CAM and
connected machinery
• ERP in 2015 for transparency
2. Went on with:
• New products (e.g.
components for space
travel)
• New customers
3. Most recent steps:
• Online channels
with new partners
Overview:
• Specialist for precise turn and milling
parts since 2010 (10 employees)
• Family business with 30 employees and
about 4 Mio. € turnover/year
• Lots of single unit products
Cooperation with DIH started
• Identify new partners
• New employee

9. © LS Automatisierungstechnik | BTU Cottbus-Senftenberg | Univ. Prof. Dr.-Ing. Ulrich Berger | 2020 9
SUMMARY AND OUTLOOK
§ SMEs are important for Brandenburg and other regions
§ Both case study companies actively and successfully focus on digital business model innovation
§ Digital technologies provide possibilities to create and improve competitive business models
§ BMI as a process needs to be focused for SMEs
§ BMI paths provide a suitable approach for analysing BMI processes in SMEs
§ DIHs provide partners and external knowledge for digital BMI
§ Further research needs to be done:
» More precise timeline of BMI steps
» Inclusion of BMI as an outcome to identify steps, time and problems in the process of BMI

10. © LS Automatisierungstechnik | BTU Cottbus-Senftenberg | Univ. Prof. Dr.-Ing. Ulrich Berger | 2020 10
Thank You for your attention

11. © Chair of automation technology| BTU Cottbus-Senftenberg | Univ. Prof. Dr.-Ing. Ulrich Berger | 2020
CONTACT US
IMI BRANDENBURG
BTU Cottbus - Senftenberg
Chair of automation technology
Siemens-Halske-Ring 14
Teaching building 3A , Room 142
03046 Cottbus
0355 / 69 4228 @imi4bb
0355 / 69 2387 IMI Brandenburg | XING
imi4bb@b-tu.de
www.imi4bb.de
Das Innovationszentrum Moderne Industrie Brandenburg wird durch Mittel der Europäischen Union und des Europäischen Fonds für Regionale Entwicklung (EFRE) gefördert.
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