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The company has a long business cycle in which an item sets in Amazon inventory for approximately 36 days and after 19. An example would be a company which makes a very low- profit margin but disrupts the market. The machine manufacturer can develop digital business models as a solution here: for example an online academy for improved training or a 24-hour service center with networked technicians who monitor the performance of machines worldwide and, if necessary, switch on via web conferences. 3) Cash Business Machine Model : This is also called as Cash Conversion Cycle Business Model. This requires precise shift planning to ensure that qualified staff are available around the clock. Error messages must be detected and corrected on site. Teams of experts must be on site in each shift to monitor the machine. A business with a subscription business model provides consumers with certain services for a fixed monthly, quarterly, or annual fee. Staff training: Monitoring the machine requires precise training, which is costly and time-consuming.By connecting machines and developing a marketplace, the machine builder can offer valuable additional services: utilization-oriented invoicing ( use instead of purchase ) or a brokerage of production capacities (“marketplace model”) can be the basis for successful digital business models. The Business Model: Nature and Benefits Chapter 1 in Business Models and Modelling Volume 33 Advances in Strategic Management editors C.
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Sometimes the machines are not working at full capacity, at other times production capacity would have to be increased.
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Fluctuations in orders: The company has to cope with volatility in orders.
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