Entrance Area
The First Step into the Business Model House
The entrance area is the moment when you open the door to your business model house. Here you clarify the initial situation:
- Where do you stand today?
- Why do you want to develop a data-driven business model?
- What initial ideas do you already have?
This section provides the shared understanding and strategic foundation for the upcoming rooms.
Why the Entrance Area is Crucial
We have enormous amounts of technical data in our companies (quantities, temperature, pressure, etc.) that our machines produce daily. Until now, this data often lies unused. At the same time, we notice that pure machine sales are no longer economically sufficient.
The central question: How can we create real value from our data?
The entrance area transforms this vague idea into a concrete goal – from "we should do something" to a structured starting point for business model development.
The 8 Building Blocks at a Glance
| # | Building Block | Core Question |
|---|---|---|
| 1 | Current State Assessment | Who are you as a company? |
| 2 | Revenue Model | How do you make money today? |
| 3 | Initial Idea | What data-driven offering could emerge? |
| 4 | Industry 4.0 Touchpoints | What digital touchpoints exist? |
| 5 | Digital Maturity Level | How digitally capable are you today? |
| 6 | Strategic Goals | Why are you investing time in this topic? |
| 7 | Scope & Framework | What is in/out of scope? |
| 8 | Role of the Data Space | How does Factory-X/Catena-X fit into the picture? |
1. Current State Assessment
Before ideas can emerge, you need a precise picture of your starting point. This honest assessment is the foundation for everything that follows.
Company Description
Describe your company in 3-5 sentences:
- Size & Focus: Mid-sized company, corporation, specialist?
- Typical Customers: Who buys from you today?
- Value Chain: Where do you sit in the chain?
- Unique Aspects: What makes you interesting for digital models?
Company Role in the Ecosystem
Assign yourself to one or more roles:
| Role | Description | Typical Activities |
|---|---|---|
| Factory Operator | Operates production facilities | Uses machine data, needs services |
| Machine Builder | Develops and sells machines | Has access to design data, knows operating parameters |
| Component Supplier | Supplies parts and assemblies | Has specific know-how about components |
| Software Provider | Develops digital solutions | Brings platform and analytics competence |
| Service Provider | Offers services | Has customer contact, knows pain points |
Current Offering
- What do you sell today specifically?
- What differentiates you from the competition?
- What strengths do you have that could be digitally leveraged?
2. Revenue Model (Current State)
Here you clarify your current business model — not the future one.
Current Revenue Sources
Briefly document how you make money today (e.g., product sales, service contracts, spare parts, licenses, consulting).
The development of new revenue models (subscription, pay-per-use, outcome-based) takes place in the Yellow Room.
Customer Analysis
- Current Customers: Which segments do you serve today?
- Potential Customers: Which segments could you serve but don't yet?
- Data Potential: What data is generated today that would be valuable for customers?
This analysis often reveals untapped potential: e.g., data that "gathers dust" internally today but would be valuable to customers.
3. Initial Idea for a Data-Driven Offering
This isn't about feasibility yet. A thought is enough: "There could be potential here."
If You Already Have an Idea
Describe it along this structure:
| Aspect | Description |
|---|---|
| Problem | What customer problem are you addressing? |
| Target Group | For whom is the solution relevant? |
| Data/Assets | What data or resources are you using? |
| Value Proposition | What is the concrete benefit? |
If You Don't Have an Idea Yet
Start with these prompting questions:
- What customer complaints occur regularly?
- What data is generated unused in your company?
- Where could a data space help create new value?
- Which processes at the customer could be improved through your data?
Example: "We want to provide anonymized machine data in a data space to enable predictive maintenance services."
4. Industry 4.0 Touchpoints
Even if you're not deep into the topic yet, there are usually touchpoints with digital transformation:
Technology Inventory
| Area | Self-Assessment Questions |
|---|---|
| Digital Services | Do you already offer digital services or interfaces? |
| Standards | Do you use industrial standards (OPC UA, MQTT, etc.)? |
| Ecosystems | Do you have experience with Catena-X, Manufacturing-X, or GAIA-X? |
| Data Production | What data do you produce that would be relevant externally? |
| Connectivity | Are your machines/products connected? |
Data Landscape
Create an initial overview of your data:
- Machine Data: Operating parameters, sensor data, states
- Process Data: Throughput times, quality metrics
- Transaction Data: Orders, deliveries, invoices
- Product Data: Bills of materials, CAD models, documentation
5. Digital Maturity Level
The digital maturity level shows how digitally capable you are today – an honest assessment is more important than an optimistic one. To determine your digital maturity level, the VDMA Industry 4.0 Readiness Check can help - a free tool that guides you through the assessment and shows concrete action areas:
Assessment Dimensions
| Dimension | Low | Medium | High |
|---|---|---|---|
| Data Availability | Data in silos | Partially integrated | Consistently available |
| IT/OT Integration | Separate systems | Point-to-point interfaces | Integrated architecture |
| Automation | Manual processes | Partially automated | Highly automated |
| Data Quality | Inconsistent | Acceptable | High quality |
| Digital Competence | Little know-how | Building | Established |
| Infrastructure | Legacy systems | Modernization ongoing | Cloud-ready |
6. Strategic Intention & Goals
Why are we investing time in developing a data-driven business model?
Typical Strategic Motives
| Motive | Description | Example KPI |
|---|---|---|
| New Revenue Sources | Additional revenue through digital services | Revenue share from digital services |
| Differentiation | Distinction from competition | Unique Selling Points |
| Customer Retention | Stronger customer relationships | Customer Lifetime Value |
| Efficiency Improvement | Internal process optimization | Cost reduction |
| Ecosystem Access | Participation in data spaces | Number of partner integrations |
| Future-Proofing | Preparation for new market requirements | Time-to-Market |
Goal Definition
Good goals are:
- Clear: Unambiguously formulated
- Realistic: Achievable with available resources
- Measurable: Backed by KPIs
7. Scope & Framework Conditions
To keep the process focused, you define the framework – what is considered and what is explicitly not.
Scope Definition
| Dimension | In Scope | Out of Scope |
|---|---|---|
| Markets | e.g., DACH region | e.g., Asia-Pacific |
| Technologies | e.g., cloud-based | e.g., on-premise only |
| Time Horizon | e.g., 12-18 months | e.g., 5-year vision |
| Resources | e.g., 3 FTE, 500k EUR | e.g., major investment |
Framework Conditions & Constraints
- Strategic Taboos: What must absolutely not happen?
- Regulatory Requirements: What compliance requirements apply?
- Technical Requirements: Which systems are fixed?
- Organizational Boundaries: Which departments are involved?
8. Role of the Data Space
A data space (Factory-X, Catena-X) is more than a data repository — it's a collaboration space for sovereign data exchange.
Initial Classification
Consider now:
- Do you want to share or receive data?
- What data could you use or provide?
- What partners do you need in the ecosystem?
The precise definition of your role in the data space (Data Provider, Data Consumer, Service Provider, Orchestrator) as well as technical integration takes place in the Green Room.
Output of the Entrance Area
Current State
Company role, customers, revenue models, offering, maturity level, touchpoints
Initial Offering Idea
Brief description, problem, data, hypotheses, role of the data space
Framework & Goals
Strategic intention, scope, KPIs, expected results
Quality Gate: Entrance Area
Before moving to the Blue Room, check:
The entrance area is the foundation of your house. The clearer this section is elaborated, the more stable everything that follows will be. An honest assessment is more important than an optimistic presentation – radical honesty pays off in all subsequent rooms.