Methodology for the Development of Value Propositions within Subscription Models

Portland International Conference on Management of Engineering and Technology (PICMET), pp. 1–9

Abstract

Ongoing digitalization and Industry 4.0 enable the development of new business models due to the increase in available data and digital connected products. A promising business model type for the machinery and plant engineering industry are subscription models, consisting of products and services offered in return for continuous payments. However, subscription-based business models are associated with extensive changes in the traditional machinery and plant engineering industry, in particular, for small and medium-sized companies (SMEs). Established concepts for the development of value propositions and business models neglect important aspects, such as the integrated development and optimization of products and services across the entire life cycle or the data infrastructure. This paper presents a concept for a methodology to support SMEs developing value propositions within subscription models. Therefore, the systematic identification of customer benefits, the determination and prioritization of subscription relevant functionalities as well as the design of product and service elements addressing those functionalities are the main aspects on which the focus is placed on. The result is a subscription value proposition canvas for SMEs to address the impact of subscription models on products and services.

Authors 5

1. Günther Schuh Aachen Laboratory for Machine Tools and Production Engineering WZL

   RWTH Aachen University

   Affiliation as printed

   Aachen University,Laboratory for Machine Tools and Production Engineering WZL of RWTH,Aachen,Germany

   Laboratory for Machine Tools and Production Engineering WZL of RWTH, Aachen University, Aachen, Germany

2. Volker Stich Aachen Research Institute for Rationalization FIR

   FIR e. V. an der RWTH Aachen · RWTH Aachen University

   Affiliation as printed

   Research Institute for Rationalization FIR at RWTH Aachen University,Aachen,Germany

   Research Institute for Rationalization FIR at RWTH Aachen University, Aachen, Germany

3. Christian Dölle Aachen Laboratory for Machine Tools and Production Engineering WZL

   RWTH Aachen University

   Affiliation as printed

   Aachen University,Laboratory for Machine Tools and Production Engineering WZL of RWTH,Aachen,Germany

   Laboratory for Machine Tools and Production Engineering WZL of RWTH, Aachen University, Aachen, Germany

4. C. Ruschitzka Aachen Laboratory for Machine Tools and Production Engineering WZL

   RWTH Aachen University

   Affiliation as printed

   Aachen University,Laboratory for Machine Tools and Production Engineering WZL of RWTH,Aachen,Germany

   Laboratory for Machine Tools and Production Engineering WZL of RWTH, Aachen University, Aachen, Germany

5. C. Holper Aachen Research Institute for Rationalization FIR

   FIR e. V. an der RWTH Aachen · RWTH Aachen University

   Affiliation as printed

   Research Institute for Rationalization FIR at RWTH Aachen University,Aachen,Germany

   Research Institute for Rationalization FIR at RWTH Aachen University, Aachen, Germany