How digitalisation in manufacturing drives business model innovation in the optical lens industry

Abstract

Digitalisation as a megatrend disrupts traditional manufacturing value chains and associated business models. Deciders face substantial challenges driven by digitalisation in manufacturing whilst shaping business models and enabling value creation. Yet, academic literature reveals gaps in understanding, how digitalisation in manufacturing can leverage business model innovation. Thus, the purpose of this study is to explore, how digitalisation in manufacturing drives business model innovation for the optical lens manufacturing industry. The research is based on a case study to understand experiences and investigate patterns, how value creation opportunities from emerging digitalisation adoptions in manufacturing can be exploited for business model innovation. Following a pilot study, semi-structured interviews are applied to gain in-depth understanding about experiences with the phenomenon. The interviews are conducted with people in key roles, who put business model innovation and digitalisation in manufacturing into practice. The collected data is assessed adopting a thematical analysis approach to derive themes and patterns. Adding to recent academic theory and managerial implications regarding business model innovation, the findings of this thesis contribute to an understanding, how digitalisation adoptions can be exploited for business model innovation, how business model innovation can be deployed, and how value creation can be driven by digitalisation in manufacturing. The findings provide insights into the challenge that business model innovations often happen on a greenfield, whereas manufacturing processes behind the business model are already established. Best practices for business model innovation seem to emerge out of personal experiences. External and internal motivators trigger business model innovation, however, customers stimulate innovations by rather communicating their problems instead of particular ideas. Furthermore, the value added by business model innovation is not always assessed looking at financials, but includes industry-specific performance criteria as well.