A smart factory can only be smart if business process is also smart. Business models focus on value creation for stakeholders and also for activities performed outside company for say suppliers and customers. New business models should be based on products/services, core competencies, partners/stakeholders customers, revenue model, cost model, Relationship, delivery medium. The heart of business model is formed with products or services offered to the customers. The core competencies are those which add values to product/services and also pop it out of the crowd. Partners/stakeholders add value and provide support to the product/service.
Customers represent a single individual or a group of individuals sometimes even companies. Revenue model and cost model gives an overall view on financial aspects. Relationship is like a building block between company and customers, relationship should be maintained in order for company to gain confidence in the target market and also increase in sales. Delivery medium represents more like marketing, how it presents itself to the customers.Business model logic is to create a unique mixture of resources and activities; the next step is to find a efficient way of structuring the transaction between company and its suppliers, partners and customers. Business models should primarily be seen as analytical tools or frameworks that are suitable for the recognition of challenges and opportunities new technologies , as well as the identification of capabilities required to gain economic value from them