How Can Traditionally Manufacturing-focused Companies Digitize Their Business Models to Remain Competitive in Their Industries? A Case Analysis on the Basis of the Robert Bosch GmbH and Their IoT Platform ‘Smart Home’

Abstract

The increased relevance of digitalisation changes the way companies conduct business across many industries. New innovative market players are forcing incumbent manufacturing companies to reconfigure their business models in order to stay competitive and avoid a commoditized status. A proactive approach to business model innovation offers the potential to trigger substantial growth and to secure competitive advantages.
As of today, literature does not pay much attention to the integration of IoT platform business models within traditionally manufacturing focused companies. A study is needed to analyse this pursuit of digitalisation.
The research is based on a comprehensive literature review and a case study, conducted with the German OEM Robert Bosch GmbH. Its newly developed IoT platform ‘Smart Home’ enables Bosch to interact with their customers across the whole product lifecycle and to gain valuable data, which results in tailored additional integrated services and improved new product development. The analysis is composed of an in-depth business model change study and a critical evaluation of Bosch’s smart home platform dynamics and positioning within a company overarching connected home ecosystem.