Abstract:

The aims of the paper are to present the relationship between the concepts of innovative business models and digitalization in Industry 4.0, and to illustrate the impact those components have on current companies.

In times of increasing dynamics, complexity and digital transformation of society and market, the demand for innovation applies not only for products, services and processes or day to day activities, but also for business models. Digitalization represents a key feature of the fourth industrial revolution or the so-called “Industry 4.0”, a new phase in the development of industry all over the world. In Industry 4.0, products, logistics and services are technically and organizationally merged with one another by using cyber-physical systems in such a way that an increased and self-controlling production flow is created. For the economic success, it is of central importance to recognize future developments and trends in time, and to initiate corresponding measures and thus to address them by anticipating them with the goal of future market requirements and to generate long-term competitive advantages.

Business model innovations in Industry 4.0 and digital transformation have reached companies. Yet, there are big differences in the speed of implementation of business model ideas. Most companies prefer a slow development of business models, as this does not radically change the evolution of the company. But there are also companies who enhance radical shifts which affect their whole logic of value creation.

In order to reach the aims of the paper the authors used a quantitative research method and a case study. The findings of the research showed that digitalization and innovative business models improve the performance of today’s organizations and, in the case of European companies, lead to providing safer products for customers and achieving better results. The paper contributes to the development of the scientific literature by emphasizing the key role played by digitalization and business models in Industry 4.0.