Digitalization as a tool for providing competitive advantages to enterprises in the machine-building industry
Date
2018-02-10
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Lviv Politechnic Publishing House
Abstract
In such a climate, competition
becomes ever more fierce and manufacturers must seize
every opportunity and competitive advantage they can
find.Increasingly, such advantages–along with new
threats of disruption–come from digital technologies. A
critical element of manufacturing innovation will be in
the form of new business models, particularly regarding
services and value-added offerings. In effect, simply
making a good product may no longer be enough.
Increasingly, what happens after the product is sold
looms ever larger. Machine builders that successfully
leverage services are using them to drive disruptive new
business models that, in effect, enable them to charge for
business outcomes–such as plant uptime–just as they
now charge for physical products sold as a capital
investment.Companies that don’t harness services–by
converging their service and digital journeys–will risk
falling behind in a rapidly changing marketplace in
which innovation and agility rule. The author considers
digitalization as a basis for service-oriented business
models and considers digitalization as a tool for
ensuring the competitive advantages of machinebuilding
enterprises.
Description
Keywords
competitive advantage, digitalization, service-oriented business models
Citation
Tsvok D. Digitalization as a tool for providing competitive advantages to enterprises in the machine-building industry / D. Tsvok, J. Toczynska // Economics, Entrepreneurship, Management. — Lviv : Lviv Politechnic Publishing House, 2018. — Vol 5. — No 1. — P. 23–30.