Outcome Based Business Models Influenced with Internet of Things – in Agriculture

Abstract

Industry 4.0 technologies and overall digitalization have accelerated the adoption of servitization models in the manufacturing industry such as outcome-based business model. While this model is gaining traction in the manufacturing space, there is little understanding of its applicability in other industries, in particular in agriculture. The aim and subject of this case study provides the main findings of the analysis of the feasibility of applying outcome-based business model in the agricultural sector, specifically winemaking. Result of the study confirm that the use of outcome-based business models in agriculture is still in the infant stage because of the many parameters in this industry that cannot be controlled. Therefore, the application of outcome-based business model in this sector can best take place following several modifications that are indicated in the paper.