Affiliation:
1. Bosch Software Innovation GmbH, Bosch IoT Lab, Dufourstrasse 40a, 9000 St. Gallen, Switzerland Switzerland
2. ETH Zurich, 8092 Zurich, Switzerland Switzerland
3. University of St. Gallen, Dufourstrasse 40a, 9000 St. Gallen, Switzerland Switzerland
Abstract
Abstract
There is a broad consensus that the transformative power of the Internet of Things (IoT) will affect all kinds of
industries; or, to put it in a more optimistic light, that almost no domain is excluded from the opportunities to leverage
the IoT. But, what does this mean for the future of industrial processes? This article introduces the concept of
high-resolution management (HRM). IoT enables the collection of high-resolution data for the physical world where, as in
the digital world, every aspect of business operations can be measured in real-time. This capability facilitates
high-resolution management, such as short optimization cycles in industrial production, logistics and equipment
efficiency, comparable to methods like A/B-Testing or Search Engine Optimization, which are state of the art in digital
business. We take the following two perspectives on leveraging high-resolution management. First, through greater insights
into their industrial processes, companies that apply HRM in their operations are able to achieve higher efficiency,
quality and flexibility. The example of vehicle fleet management illustrates this effect. Second, we build upon the
St. Gallen Business Model Navigator in order to look in greater detail on how the IoT affects industrial
processes. Gassmann et al.
Gassmann, O., Frankenberger, K., and Csik, M. (2014). The business model navigator:
55 models that will revolutionise your business. Financial Times.
introduce 55 generic business model
patterns, of which our extended research identified 20 that could profit significantly from the
IoT
Fleisch, E., Weinberger, M., and Wortmann, F. (2014). Geschäftsmodelle im Internet der
Dinge. HMD Praxis der Wirtschaftsinformatik, 51(6), 812–826; Gassmann, O., Frankenberger, K., and Csik, M. (2014). The
business model navigator: 55 models that will revolutionise your business. Financial Times.
. Analyzing these
20 patterns allowed for the identification of six key components: Remote Usage
and Condition
Monitoring, Object Self Service, Digital Add-on, Digital Lock-in, Product as a Point
of Sales and Physical Freemium. These building blocks help companies to supply HRM-supported offerings. Finally,
the example of remote monitoring of process parameters shows that these business model components can also be deployed to
create offerings that
enable others to apply HRM.
Subject
Electrical and Electronic Engineering,Computer Science Applications,Control and Systems Engineering