Value of Transformation: Business-Driven or Technology-Driven?

We are at the cusp of a significant technology-driven transformation of most, if not all, industries. Research and development processes have evolved because of data and technology. R&D work is now moving toward AI and machine learning methods. The operational processes are changing as well. Data can be leveraged to fine-tune and accelerate future processes. Predictability from data has improved results that are almost always accrescent. However, the real economy is still far from digital maturity. We have only truly started to leverage digital transformation in a few processes of the value chain, and with limited investment, product commercialization has not delivered the expected results. The majority of scholarly investigations have concentrated on the technological facets of the fourth industrial revolution (Industry 4.0), primarily revolving around advancements in products and processes. Surprisingly scant attention has been given to the realm of business model innovation, despite its potential to yield greater success compared to conventional product or process-centric innovations. In light of this, a pivotal inquiry arises: What indeed constitutes the principal impetus behind the value derived from the profound shift toward digital transformation? What are the advantages or disadvantages of focusing on technology as the end goal as opposed to a tool? This paper intends to review business models fitting into the Industry 4.0 paradigm and the main patterns they identify with. Integration patterns introduce novel elements to business models by incorporating fresh processes and seamlessly melding segments of the supply chain. In contrast, servitization patterns spark innovation by synergizing services and products, departing from the traditional focus solely on products. Meanwhile, the expertization pattern represents a fusion of the product-process-centric business model, encompassing consultative services and multi-faceted platforms. © The Author(s), under exclusive license to Springer Nature Switzerland AG 2024.