The Future of Manufacturer Business Model

Abstract

When economies grow globalized and unpredictable, manufacturing firms are forced to be more creative and efficient in providing their consumer’s value. The business model is at the heart of every company’s strategic response to the competition and determines its value proposition, necessary operations, resources and partners, and consumer awareness, costs or income related to its increased activity. This paper aims to evidence the bond between traditional and electronic business models, giving a perspective of the manufacturing field. 

Keywords: manufacturing business model; manufacturing process; manufacturing types; sustainable business models; produce service system 

Definition: The manufacturer business model incorporates raw materials to produce an item for sale. A production firm will directly market the goods delivered to its consumers, defined as the business-to-consumer model.  

Introduction

Several scientists have explained the evolution of the manufacturing process. They have proposed that producing companies in developed economies should increase their position in the value chain, aiming to innovate and design new products or services so that they don’t compete based on expense alone. To remain competitive for added value, manufacturing firms must provide a network of similar strategies to manage and maintain their company to achieve demand opportunities. 

Traditional or Electronic Business Models?

As the world evolves widely, several diverse business models occur, varying from basic ones like the producer model to more complicated ones. Moreover, some businesses rely on various market strategies and may often rely on somewhat different methods in one field.

Tradition is the illusion of permanence. The prolific combination of future studies and sustainable business model development is illustrated in the example of a so-called living factory, a modular and adaptive production environment that integrates Circular Business Models and Product Service Systems aspects.

Moreover, the Product Service System (PSS) definition underlines the transition from conventional firms to a modern organizational orientation focused on the roles and advantages of integrating goods and services

Manufacturing industry models concentrate on marketing physical commodities via supplier-buyer partnerships in specific consumer categories.

Conclusion

The shift from conventional business models to sustainable business models and how techniques from future experiments, such as scenario design, help these transformations are also essential subjects awaiting more study. Another essential factor is developing metrics that assess business model sustainability. 

Building on the main qualitative factors in quantitative methods is yet to be discussed. Moreover, embracing Product Service Systems and circular economy concepts will encourage but hardly guarantee that this version of business operation can result in more sustainable results. Future study needs often apply to handling refurbishing and (re-)consumption, which explicitly involves a more multidisciplinary method.