DEMAT: sustainability assessment of new flexibility-oriented business models in the machine tools industry

Abstract

New flexibility-oriented business models represent a novelty in business model research. They aim at optimising the management of manufacturing flexibility in turbulent environments through the offering of added-value services by system suppliers. However, they are currently defined at theoretical level and their economic sustainability for customers and suppliers has to be quantitatively demonstrated. In this paper, a methodology to assess the economic performance of flexibility-oriented business models based on probabilistic event-decision trees modelling is presented. The methodology was applied to a real industrial case and simulations were performed to identify win-win conditions that make business models sustainable for customer and supplier. Results allowed to understand which are the main variables determining flexibility-oriented business models’ success and they constitute a reference for companies willing to innovate their business model in this direction.

Keywords:

• new business models
• product service systems
• manufacturing flexibility
• production systems reconfigurability
• business model financial assessment

Additional information

Funding

This research was partially funded by the European Commission through the project ‘DEMAT – Dematerialized Manufacturing Systems: A new way to design, build, use and sell European Machine Tools’ [grant number NMP-246020-2 FP7]. The authors acknowledge the Commission for its support and DEMAT project partners for their contribution during the development of various ideas and concepts here presented.