Outcome-Based Business Design in IoT-Enabled Digital Supply Chain Transformation

In the current economy, we see a shift of focus from delivering products or services to delivering value or outcomes to customers, reflected in the concept of the outcome economy. The concept has been embraced by research and practice but lacks proper operationalization to make it fit for the digital transformation of supply chains. In this paper, we translate the concept into a cybernetic model and accompanying technique and tool that can be used for outcome-based business engineering, leading to structures for Internet-of-Things-enabled, data-driven value delivery in supply chains. Based on a design science research approach, we discuss the development of the Alpha version of this model and tool, the application in business practice, and the use of this experience to develop a Beta version. We provide a bridge from a leading contemporary business concept to structured application in practice, positioning Internet-of-Things and Business Intelligence technologies for data-driven business execution.