Risk assessment of business models driven by Industry 4.0

Abstract

Industry 4.0 changes business models and presents new risks to be addressed. The authors developed a risk assessment matrix RADi (Risk Assessment for Business Model Digitization) which consists of technical, competences, employee and customer consent, data security, and financial risk. The expert evaluation uses the FARE method as a multi-criteria decision support approach. The results determine which parts of a business model driven by the Industry 4.0 are to be most affected by different risks. Results show the biggest effect to customer channels, key resources, revenue stream, and customer segments. The least impact is shown to key partners. Companies can use model RADi to identify the greatest risks to plan and implement the digitization of business models. The RADi approach can also be used by policymakers to anticipate risks and prioritize public support and regional development.