Innovations in Manufacturing Business Models Enabled by Digital and AI-driven Transformation: A Conceptual Framework

Timoleon Farmakis, Stavros Lounis, Ioanna Sofia Georgoutsou, Anastasios Koukopoulos, Ioannis Mourtos

Abstract: The emergence of Industry 4.0 has redefined manufacturing, catalyzing a paradigm shift in business models to leverage advanced technological capabilities such as Artificial Intelligence and evolving market expectations. This paper utilizes a literature review that delineates identified strategic avenues for business model innovation in manufacturing, synthesizing current literature on servitization, digital servitization, mass customization, AI-driven, and circular/sustainability business models. It also proposes a novel conceptual framework to assist manufacturers in navigating the complexities of Industry 4.0, enabling the identification and exploitation of emergent opportunities for value creation, delivery, and capture. By embracing these innovations, manufacturers can transcend traditional production-focused models, deliver tailored customer experiences, and achieve sustainable competitive advantage in a turbulent era.

External IDs:dblp:conf/ice-itmc/FarmakisLGKM24