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Interesting because: Entrepreneurs frequently encounter substantial challenges in structuring business models, particularly when engaging with groundbreaking technologies associated with Industry 4.0. While existing literature provides frameworks and guidelines outlining the fundamental components of a business model, it often falls short of elucidating the actual process of business model structuring. Drawing on a dynamic value-based strategy perspective, this paper introduces a novel approach to understanding this process by mapping the stages experienced by several Brazilian companies in their journey to structure their business models.
Theoretical value: By examining the value creation, configuration and appropriation processes of smart service providers, we propose a typology of business model structuring (see figure ahead). As a new theoretical insight, we found that the three aspects—service orientation, knowledge base and application of technology—must be analyzed at the individual, organizational and community levels. This approach reveals four stages in business model structuring: the individual or initial business model, the platform business model, scaling digital business models and the innovation ecosystem business model.
Practical value: Industry 4.0 represents a convergence of technology and functionality that facilitates self-organization and the provision of smart products and services, integrating customer information and data across production, distribution and purchasing processes. By analyzing seven cases of smart service providers at various stages of business model structuring, this study offers support for emerging ventures, addressing both the new technologies and the evolving relationships with customers and suppliers necessary for implementing and evolving their business models.
1. Introduction
Industry 4.0, a concept that has emerged in the last decade, reflects the convergence of various trends observed in countries at the forefront of technology, encompassing diverse activities and tools (Lasi et al., 2014), such as cyber-physical systems, artificial intelligence (AI) (Zhong et al., 2017; Wang et al., 2016; Lee et al., 2014), big data and the internet of Things (IoT) (Lee et al., 2017). Together, these emerging technologies provide interconnection and integration of products and processes that generate value not only for companies, but also for consumers and the public sector, primarily through greater productivity, speed and efficiency in decision-making (Frank et al., 2019a). For this reason, Industry 4.0 processes are also referred to as high value-added manufacturing processes (Lee et al