Description
Demands for a digitalized, connected, and smart production provide a fertile ground for industrial Internet-of-Things (IIoT) platforms to arise within the manufacturing industry (e.g., Siemens Mind Sphere, AXOOM Smart Enterprise, FORCAM FORCE). Nevertheless, many companies struggle to successfully kick-off platform ecosystems. Information Systems (IS) literature is of limited help, because insights on managing platform ecosystems are mostly derived from successful examples in the business-to-consumer (B2C) context. To better understand the challenging situation of companies in the emerging IIoT environment, we conducted an in-depth case study at a prospective platform provider. Insights gained through interviews and engagement in the field uncovered a tension between a horizontal platform strategy and vertical integrated solutions as a central challenge for companies aiming to launch an IIoT-platform in the market. By conceptualizing this trade-off, its causes along with related benefits and challenges, we add to existing literature on platform governance and launch strategies.
Developing an Industrial IoT Platform – Trade-off between Horizontal and Vertical Approaches
Demands for a digitalized, connected, and smart production provide a fertile ground for industrial Internet-of-Things (IIoT) platforms to arise within the manufacturing industry (e.g., Siemens Mind Sphere, AXOOM Smart Enterprise, FORCAM FORCE). Nevertheless, many companies struggle to successfully kick-off platform ecosystems. Information Systems (IS) literature is of limited help, because insights on managing platform ecosystems are mostly derived from successful examples in the business-to-consumer (B2C) context. To better understand the challenging situation of companies in the emerging IIoT environment, we conducted an in-depth case study at a prospective platform provider. Insights gained through interviews and engagement in the field uncovered a tension between a horizontal platform strategy and vertical integrated solutions as a central challenge for companies aiming to launch an IIoT-platform in the market. By conceptualizing this trade-off, its causes along with related benefits and challenges, we add to existing literature on platform governance and launch strategies.