Add-on business model
An ‘Add-on’ business model involves the use of digital technologies to enable additional functions or add customised services to an existing physical product or service. Here, technology embedded in the product, such as sensors, actuators, software and connectivity components, enables the provision of digital features such as software applications or services; for example, continuous or on-demand access to information, feedback or reports. These features help the customer make their use of the product, or their processes, more efficient.
Usage-based business model
The 'platform' business model involves the provision and management of a digital platform that enables customers to access to the SME’s product or service, or facilitates the exchange of products, services and information between providers and customers. It aims to create value for all parties, by, for example, optimising asset utilisation or making processes more efficient.
Solution-oriented business model
A ‘Solution-oriented’ business model involves the use of digital technologies to provide a contractually agreed outcome to a specific customer, such as a certain level of continuous utilisation and uninterrupted usage, or performance of the product. Here digital technology allows the SME to access real-time information on the product’s status or pattern of its operation, in order to offer more effective maintenance, repair and operational support services to ensure the agreed outcome, and in extension, to optimise a core process of the customer.
Platform business model
The 'platform' business model involves the provision and management of a digital platform that enables customers to access to the SME’s product or service, or facilitates the exchange of products, services and information between providers and customers. It aims to create value for all parties, by, for example, optimising asset utilisation or making processes more efficient.