Smart Sensors as Technical Enabler of Pay-per-X Business Models for Original Equipment Manufacturers : A Case Study with a German Sensor-Technology Start-up

Abstract: This thesis aims to investigate a digital, emerging business model, which just enjoys the highest attention in many industrial sectors. The industry 4.0 changes how original equipment manufacturers (OEMs) retain their competitiveness and offer innovative solutions to their customers. Therefore, this master thesis investigates the diverse opportunities of usage-based business models – namely Pay-per-X / Equipment-as-a-Service – from the perspective of a sensor-tech start-up. The company, which can act as a technical enabler for Pay-per-X, is located in Germany and has various markets leading machine and component manufacturers as customers. This projects’ goal is to get an in-depth understanding of the business model and how the company (with their technology) can participate in the market, which is estimated to have a size of 131.2m USD in 2025. Therefore, mainly qualitative research methods have been applied – however, quantitative sections enrich the analysis part of the thesis. Nine expert interviews were conducted, and a calculation tool was developed, which aims to easily convince OEMs of the new business models through modeling a business case, by incorporation of the most relevant parameters. Two use cases were analyzed in the fields of production machines and commercial vehicles. This is followed by a short excursus to a required Pay-per-X cloud software, where requirements were defined based on machine users’ needs. Based on these insights, a positioning strategy for the case company within this field is proposed later-on, which puts emphasis on how the firm can act as a technical enabler for Pay-per-X business models.