Innovative products through cooperation at eye level

Digital transformation is giving rise to new products, services and business models. A new white paper from the Fraunhofer Institute for Manufacturing Engineering and Automation IPA describes a novel form of peer-to-peer cooperation between multiple companies focused on a specific visionary value proposition: the structure-business ecosystem.

Structure-Business-Ecosystem: Together towards a customer-centric, cross-industry value proposition. (Image: Fraunhofer IPA)

Digitization is fundamentally changing the economy. Because it networks products and services, new business and organizational models are emerging. But they
is also changing user behavior and customers' understanding of benefits (perceived added value). Customers want new, usually more comprehensive solutions. Companies have to respond to the rapid change in order not to end up on the sidelines. They are forced to offer services outside their core business. Often, services from outside the industry must be included in a competitive, customer-oriented system offering.

Competition from lateral entrants

Mechanical engineering is also feeling the effects of the digital transformation process. Not only are the conventional value chains being
The companies are also facing competition from unexpected sources, from lateral entrants. One way out is cooperation between several companies that have different focuses or even cover different industries. Together, they are able to bring completely new products and services to the market. To offer a system portfolio for individual cell therapies, a company that manufactures machines for the pharmaceutical industry could join forces with various partners: for example, with specialists in cell diagnostics, with experts in regulatory affairs in the medical field, or with manufacturers of pharmaceuticals and with experts in analytics solutions based on artificial intelligence. In this way, an innovative product is created from the different competencies.

Cooperation requires new corporate culture

The white paper summarizes the results of a study on the topic of business ecosystems with 16 mechanical engineers and the findings of the dissertation by Richard E. Geitner
for the design of structural BES together. It is shown why the formation of a structural BES, especially in connection with a consistent customer orientation of companies, is a strategic option of a highly flexible value creation system for innovative cross-industry value and system offerings. The opportunities and specific characteristics of this form of cooperation are addressed.

It also outlines the basic procedure for designing a corresponding cooperation. However, structural BES requires a new corporate culture.
So far, cooperations have mostly been structured vertically: One company sets the direction, the others contribute. The new type of collaboration is based on equality. Each participant makes a substantial contribution to the joint product - and all participants benefit.

Despite risks: Advantages outweigh

Of course, cooperation at eye level also involves risks. Entrepreneurs must overcome their mistrust of other companies. They must not be afraid of their know-how falling into the wrong hands or of being taken advantage of by supposed partners. Overall, however, the advantages outweigh the risks. Not only can they offer innovative products and respond very flexibly to changing customer requirements. Investments are also cut in half - or even eliminated altogether if the partner already has the necessary know-how. The mechanical engineering companies that took part in the study also see these advantages. More than 90 percent of them consider joint offerings to be "increasingly relevant".

Source: Fraunhofer Institute for Manufacturing Engineering and Automation IPA

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