Digital Transformation of Primarily Physical Industries - Exploring the Impact of Digital Trends on Business Models of Automobile Manufacturers

The phenomenon of digital transformation received some attention in previous literature concerning industries such as media, entertainment and publishing. However, there is a lack of understanding about digital transformation of primarily physical industries, whose products cannot be completely digitized, e.g., automotive industry. We conducted a rigorous content analysis of substantial secondary data from industry magazines aiming to generate insights to this phenomenon in the automotive industry. We examined the impact of major digital trends on dominant business models. Our findings indicate that trends related to social media, mobile, big data and cloud computing are driving automobile manufactures to extend, revise, terminate, and create business models. By doing so, they contribute to the constitution of a digital layer upon the physical mobility infrastructure. Despite its strong foundation in the physical world, the industry is undergoing important structural changes due to the ongoing digitalization of consumer lives and business

Entering the Digital Era – The Impact of Digital Technology-related M&As on Business Model Innovations of Automobile OEMs

Digital technologies have reached the sphere of industrial-age, primarily physical industries, thus forcing incumbent firms to digitally innovate their business models. Employing a longitudinal dataset of the world’s largest automobile manufacturers from 2000 to 2013, we found empirical evidence of a positive effect of digital technology–related mergers and acquisitions (M&As) on digital business model innovativeness. Moreover, this effect is enhanced by previous non-digital M&A experience, a diversified M&A history, as well as early experience with digital technology–related M&As. Consequently, our findings reveal that OEMs acquiring complementary and heterogeneous external knowledge on digital technologies and possessing the absorptive capacity to integrate as well as commercialize this type of knowledge are better prepared to master the digital transformation of their business. Furthermore, we find indications of a positive influence of digital business model innovations on the expected future firm performance of automobile manufacturers, thus substantiating the importance of digital transformation

Impact of Dynamic Capabilities on Customer Satisfaction through Digital Transformation in the Automotive Sector

Technology has impacted businesses in different areas, and, consequently, many companies have found it necessary to make changes in their structures and business models to improve customer satisfaction. The objective was to quantify the effect of dynamic capabilities on customer satisfaction, through digital transformation within the automotive sector. A random sample of 42 questionnaires on 127 surveyed industries was collected during the period 2019–2020 in a pre-COVID-19 context. A structural equation model (SEM) in two stages was applied. In the first stage, two reflective models were built. In a second stage, a structural equation model was evaluated. The results obtained in this study showed that the capabilities of sensing, seizing and innovation were suitably grouped in a construct called “Dynamic Capabilities”. A positive influence of Dynamic Capabilities on customer satisfaction was found. Therefore, the companies in this industry should focus on developing dynamic capabilities to improve customer satisfaction. Once the opportunities have been identified, managers take advantage of their potential (seizing) to transform and exploit knowledge in the creation, innovation, process improvement, and definition of strategies to combine new knowledge with that already existing. The digital transformation has contributed to identify the real needs for customers, to contact them and solve their problems, as well as offering products and services by anticipating their needs

When 1+1 is Greater than 2: Concurrence of Additional Digital and Established Business Models within Companies

Many established companies currently face digitalization challenges. Part of their answer is often the creation of new digital business models based on new technologies, which do not necessarily replace the existing business model but act as additional source of economic value. Having two business models in parallel in the same company creates the opportunity of synergies between these business models. However, knowledge about the interaction between digital and non-digital business models remains scarce. This study, currently in progress, contributes to research by filling this gap and identifying synergies already taken by companies of various industries, leading to a better understanding of digital business models within established companies and their interaction with existing, traditional business models. For practitioners this study provides insights on how-to benefit from parallel business models within a company and thus how to better face digitalization

Digitalization and sustainability in the automotive industry : the role of connected services : a qualitative case study at the example of the German original equipment manufacturer BMW

Considering the fundamental changes in the automobile industry, connected services are playing an increasingly essential role for OEMs, as they enable new business models and income streams plus offer the prospect of differentiation from the competition. Furthermore, they are critical for meeting the industry's ever­changing customer expectations and can make a significant contribution to ecologically sustainable transportation. As a result, it is critical to understand the present state of connected services. The aim of the research of this master thesis is therefore to evaluate to what extent connected services can positively influence ecologically sustainable mobility in the automotive industry. For this purpose, the following research questions are posed: How can connected services contribute to more sustainable mobility? And which services can have the most significant impact? A qualitative empirical study concentrating on the German OEM BMW was conducted to answer those research questions. Specifically, the study investigates existing literature about connected services, analyses their current environmental impact and proposes a future forecast. The evaluation of these results shows that connected services positively influence sustainability by contributing to emission reduced/energy­efficient mobility (due to improved driving behavior and efficient navigation) and by transparently visualizing the ecological footprint of individual mobility. In addition, the holistic ecological impact will grow in the future, since on the one hand connected services will be developed that will be focused on improved sustainability, and on the other hand, the overall usage of connected services will grow in the future, which increases their ecological impact.Considerando as mudanças na indústria automóvel, os serviços conectados desempenham um papel cada vez mais importante para os OEM, uma vez que permitem novos modelos de negócio e fluxos de rendimento, para além de oferecerem uma perspectiva de diferenciação em relação à concorrência. Além disso, são fundamentais para satisfazer as expectativas dos clientes numa indústria que está em constante mudança, contribuindo também de forma significativa para os transportes ecológicos. É importante compreender o estado atual dos serviços conectados. O objetivo desta investigação é, portanto, avaliar até que ponto os serviços conectados podem influenciar positivamente a mobilidade ecológica na indústria automóvel. Para este efeito, são analisadas as seguintes perguntas de investigação: Como podem os serviços conectados contribuir para uma mobilidade mais sustentável? Quais os serviços que podem ter um impacto mais significativo? De forma a responder a estas questões, foi realizado um estudo empírico qualitativo focado na empresa alemã BMW. No desenvolvimento deste estudo, foi analisada a literatura existente sobre serviços conectados, analisado o seu impacto ambiental atual, e por fim propõe­se uma previsão futura. Os resultados obtidos demonstram que os serviços conectados influenciam positivamente a sustentabilidade, contribuindo para uma mobilidade mais reduzida/eficiente em termos de emissões/energia (devido a uma melhor condução e navegação eficiente), bem como para uma pegada ecológica mais transparente. Além disso, o impacto ecológico global aumentará no futuro, uma vez que serão desenvolvidos serviços conectados que se concentrarão na melhoria da sustentabilidade e a sua utilização global aumentará no futuro

The Digital Transformation of Automotive Businesses: THREE ARTEFACTS TO SUPPORT DIGITAL SERVICE PROVISION AND INNOVATION

Digitalisation and increasing competitive pressure drive original equipment manufacturers (OEMs) to switch their focus towards the provision of digital services and open-up towards increased collaboration and customer integration. This shift implies a significant transformational change from product to product-service providers, where OEMs realign themselves within strategic, business and procedural dimensions. Thus, OEMs must manage digital transformation (DT) processes in order to stay competitive and remain adaptable to changing customer demands. However, OEMs aspiring to become participants or leaders in their domain, struggle to initiate activities as there is a lack of applicable instruments that can guide and support them during this process. Compared to the practical importance of DT, empirical studies are not comprehensive. This study proposes three artefacts, validated within case companies that intend to support automotive OEMs in digital service provisioning. Artefact one, a layered conceptual model for a digital automotive ecosystem, was developed by means of 26 expert interviews. It can serve as a useful instrument for decision makers to strategically plan and outline digital ecosystems. Artefact two is a conceptual reference framework for automotive service systems. The artefact was developed based on an extensive literature review, and the mapping of the business model canvas to the service system domain. The artefact intends to assist OEMs in the efficient conception of digital services under consideration of relevant stakeholders and the necessary infrastructures. Finally, artefact three proposes a methodology by which to transform software readiness assessment processes to fit into the agile software development approach with consideration of the existing operational infrastructure. Overall, the findings contribute to the empirical body of knowledge about the digital transformation of manufacturing industries. The results suggest value creation for digital automotive services occurs in networks among interdependent stakeholders in which customers play an integral role during the services’ life-cycle. The findings further indicate the artefacts as being useful instruments, however, success is dependent on the integration and collaboration of all contributing departments.:Table of Contents Bibliographic Description II Acknowledgment III Table of Contents IV List of Figures VI List of Tables VII List of Abbreviations VIII 1 Introduction 1 1.1 Motivation and Problem Statement 1 1.2 Objective and Research Questions 6 1.3 Research Methodology 7 1.4 Contributions 10 1.5 Outline 12 2 Background 13 2.1 From Interdependent Value Creation to Digital Ecosystems 13 2.1.1 Digitalisation Drives Collaboration 13 2.1.2 Pursuing an Ecosystem Strategy 13 2.1.3 Research Gaps and Strategy Formulation Obstacles 20 2.2 From Products to Product-Service Solutions 22 2.2.1 Digital Service Fulfilment Requires Co-Creational Networks 22 2.2.2 Enhancing Business Models with Digital Services 28 2.2.3 Research Gaps and Service Conception Obstacles 30 2.3 From Linear Development to Continuous Innovation 32 2.3.1 Digital Innovation Demands Digital Transformation 32 2.3.2 Assessing Digital Products 36 2.3.3 Research Gaps and Implementation Obstacles 38 3 Artefact 1: Digital Automotive Ecosystems 41 3.1 Meta Data 41 3.2 Summary 42 3.3 Designing a Layered Conceptual Model of a Digital Ecosystem 45 4 Artefact 2: Conceptual Reference Framework 79 4.1 Meta Data 79 4.2 Summary 80 4.3 On the Move Towards Customer-Centric Automotive Business Models 83 5 Artefact 3: Agile Software Readiness Assessment Procedures 121 5.1 Meta Data 121 5.2 Meta Data 122 5.3 Summary 123 5.4 Adding Agility to Software Readiness Assessment Procedures 126 5.5 Continuous Software Readiness Assessments for Agile Development 147 6 Conclusion and Future Work 158 6.1 Contributions 158 6.1.1 Strategic Dimension: Artefact 1 158 6.1.2 Business Dimension: Artefact 2 159 6.1.3 Process Dimension: Artefact 3 161 6.1.4 Synthesis of Contributions 163 6.2 Implications 167 6.2.1 Scientific Implications 167 6.2.2 Managerial Implications 168 6.2.3 Intelligent Parking Service Example (ParkSpotHelp) 171 6.3 Concluding Remarks 174 6.3.1 Threats to Validity 174 6.3.2 Outlook and Future Research Recommendations 174 Appendix VII Bibliography XX Wissenschaftlicher Werdegang XXXVII Selbständigkeitserklärung XXXVII

DIGITAL SKILLS, ORGANIZATIONAL BEHAVIOR AND TRANSFORMATION OF HUMAN RESOURCES: A REVIEW

In the last twenty years digital technologies started to be used more commonly by companies all around the world and these technologies started to transform all processes of manufacturing and other industries. Considering this transformation process, the objective of this study was to identify the major technological trends and their impact on the organizational behavior referring to the change in the employment trends all over the world in industrial level. In the paper the digitalization and the digital trends are identified, the digital professional skills are analyzed and the trends for organizational behavior are focused. The descriptive study shows us that digitalization is not only transforming the national economies and industries but also has and will have a huge impact on organizationa

Context sensitivity of regional complex knowledge: From an analytical framework to empirical studies

Regional complex knowledge evolution has become a popular topic in the economic geography literature. Scholars measure regional complex knowledge to explain regional economic complexity or the agglomeration of innovative activities. According to the literature, such knowledge is tacit in nature, and it is mainly static and ingrained in the workers, companies, and institutions of specific locations. While studies have provided valuable insights into the agglomerative spatial patterns of complex knowledge production, making significant advancements in how it is measured and evaluated, they have not addressed the sensitivity of the context of complex regional knowledge in economic geography. To address such a gap, this dissertation aims to advance the understanding of complex knowledge by examining knowledge base combinations. I do so by exploring and comparing knowledge evolutionary processes in two industries in Shanghai: high-end medical devices and electric vehicles. This dissertation makes four main contributions. First, it advances the understanding of complex knowledge from a CKB perspective, providing a complementary approach to measuring complex knowledge in economic geography. Second, it introduces a contextsensitive theory of complex knowledge evolution by combining the concepts of CKBs and ISR. Third, it draws on a recent empirical study of the Shanghai medical device and automobile industries to illustrate the theory and shed light on complex knowledge trajectories and the relations among multiple sectors at the regional level. Fourth, it examines upstream–downstream interactions in the Shanghai medical device and electric vehicle industrial chains, refining complex knowledge research at different spatial scales and transitional contexts

Towards design elements to represent business models for cyber physical systems

Cyber-physical systems turn products into connected devices that enable interaction among individu-als, organizations, and other objects. They find application in areas such as healthcare and automo-tive, enabling new value propositions created by multiple players for a shared customer. Despite the perceived business potential, practitioners in primarily physical industries struggle to analyze and design value creation mechanisms for cyber-physical systems. The prevailing business model concep-tualizations follow a mono-organizational logic and are unable to express hybrid and interactive val-ue creation. To close this gap, we apply a design science research approach to develop and evaluate a taxonomy of design elements to represent business models for cyber-physical systems. Through an analysis of 21 use cases of value creation mechanisms in the automotive industry, we identify the de-sign elements adopted in practice; we then validate the identified design elements via 13 interviews and a workshop with our target users, obtaining a final taxonomy comprising 23 design elements. We improve the expressive power of business model conceptualizations by identifying specific roles, con-trol points, and value exchanges in a network of players, representing hybrid and interactive value creation

DIGITAL SKILLS, ORGANIZATIONAL BEHAVIOR AND TRANSFORMATION OF HUMAN RESOURCES

In the last twenty years digital technologies started to be used more commonly by companies all around the world and these technologies started to transform all processes of manufacturing and other industries. Considering this transformation process, the objective of this study was to identify the major technological trends and their impact on the organizational behavior referring to the change in the employment trends all over the world in industrial level. In the paper the digitalization and the digital trends are identified, the digital professional skills are analyzed and the trends for organizational behavior are focused. The descriptive study shows us that digitalization is not only transforming the national economies and industries but also has and will have a huge impact on organizational behavior within the enterprises by bringing new skills and expectations to the workplace