Business units are increasingly able to fuel the transformation that digitalization demands of organizations. Thereby, they implement Shadow IT (SIT) to create flexible and innovative solutions. However, the individual implementation of SIT leads to high complexities and redundancies. Integration suggests itself to meet these challenges but can also eliminate the described benefits. In this emergent research, we develop propositions for a conceptual decision framework, that balances the benefits and drawbacks of an integration of SIT using a literature review as well as a multiple-case study. We thereby integrate the perspective of the overall organization as well as the specific business unit. We then pose six propositions regarding SIT integration that will serve to evaluate our conceptual framework in future research.
Digitalization is one of the most frequently discussed topics in industry. New technologies, platform concepts and integrated data models do enable disruptive business models and drive changes in organization, processes, and tools. The goal is to make a company more efficient, productive and ultimately profitable. However, many companies are facing the challenge of how to approach digital transformation in a structured way and to realize these potential benefits. What they realize is that Product Lifecycle Management plays a key role in digitalization intends, as object, structure and process management along the life cycle is a foundation for many digitalization use cases. The introduced maturity model for assessing a firm’s capabilities along the product lifecycle has been used almost two hundred times. It allows a company to compare its performance with an industry specific benchmark to reveal individual strengths and weaknesses. Furthermore, an empirical study produced multidimensional correlation coefficients, which identify dependencies between business model characteristics and the maturity level of capabilities.
As one of the most important branches of the industry in Germany and
the European Union, the mechanical and plant engineering sector is confronted with fundamental changes due to ever shorter innovation cycles and increased competitive pressure. This makes it even more important to increase the level of service components in business models with a low service level, which are still frequently found in SMEs. This paper is dedicated to the changes that the individual components of a business model have experienced and will experience. Special attention is paid to economic sustainability, since service business models can also positively influence the long-term nature of a business. Seven interviews conducted with relevant companies serve as the empirical basis of this paper. The analysed effects of smart services and active customer integration are structured and summarized within the three pillars of every business model (value proposition, the value creation architecture and the revenue mechanic).