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Through the digitalization of the company, communication can be established between machines and employees. For this purpose, products are equipped with RFID chips. These send data with information about the production status, the position or errors to the cloud. In this way, employees can identify a potential problem at an early stage and rectify it quickly.

Such a digital transformation requires a clear strategy. Processes, know-how and core competencies must be documented and potentials analyzed. At best, this task is performed by people who understand the subject matter and can realistically assess the company’s potential. External consultants from the IT industry are often called in for this purpose.

There are five phases in the digital transformation of a business model:

1.    As-Is Analysis:

  • Recording of the current situation and contents of the business model
  • Analysis from an internal perspective
  • Analysis of the value chain and its stakeholders
  • Goal: Clarification of the products and services of a company that can be digitized and integrated into a network

2. To-Be-Definition:

Defining the goals, dimensions and framework for a new business model using the questions “Where do we want to go?” “What are our priorities?”

3.    Best Practices:

  • Consideration of the potentials in the company
  • Analysis of the best method to contribute to the digital transformation and to be integrated in it
  • Outlining the business model in order to create different variants and characteristics

4.    Digital Fit:

  • Evaluation of the different business model variants with regard to objectives, customer requirements and digital integration
  • Elaboration of a suitable business model

5.    Execution:

Finalization and implementation of the business model definition

All five phases only work through their most important component, the employees and executives. Behind such complex projects there must be people who drive visions and accompany the changes.