| Abstract [eng] |
The cloud computing technology intervention into the HVAC (Heating, Ventilation and Air Conditioning) industry BMS (Building Management System) sector and the cloud BMS software project’s emerging appearance in the markets leads to a rather revolutionary and possible game changing business concept, integrating cloud computing into traditional BMS service business. Therefore, the cloud BMS software providers are facing challenges in creating successful business model innovations and business strategies due to the lack of knowledge about practical and theoretical recommendations of merging digital IoT and cloud computing with civil engineering HVAC business models into an innovative one. Moreover, there is a lack of cloud computing business-related and market-focused knowledge as 71% of business-related articles are concentrated on global scope (not market-focused). So, it is crucial to investigate the key factors influencing the BMS cloud servitization business model creation and supporting successful strategy implementation into the market. The aim of this study is to ground the strategy of integrating the cloud computing concept into the HVAC BMS business model. The study of scientific articles has highlighted the HVAC market specifics and trends as well as cloud computing specifics and challenges. The results of a qualitative, practice-oriented, in-depth case study of a Lithuanian cloud BMS software provider show that, due to the global BMS market accelerating drivers such as new constructions and need for retrofitting, environmental regulations, constant rise of annual temperature, economic growth, etc., the Lithuanian cloud BMS software provider has great opportunities to penetrate into the niche BMS market. The analysed company’s strengths and weaknesses indicate the challenges of cloud computing industry: socio-economic, technological, legislative and economic, which are known for the cloud BMS software founders, therefore many development technological solutions solve legislative and economic issues. The socio-cultural challenges, such as non-readiness to adopt and fear, impact customers’ willingness to acquire the cloud BMS software, but the market’s break-even point is near as the small and medium visioners already search for affordable BMS alternatives that cannot be offered by large manufacturers. The know-how is the key strength in the BMS market. Due to the fact that the research data analysis has proved the company’s cloud BMS software’s value to a customer, its rarity, the inimitability prevention and organizational issues, the company 4 has a sustainable competitive advantage, therefore, the business model innovation and strategic design are presented as the final product of this study. The research confirms that there is a target customer who is not fully satisfied with BMS solution offers from current large BMS manufacturers, therefore, the small and medium BMS integrators acting in building retroffings can be a focus target customer. Due to the product complexity and the market’s unreadiness to adopt, direct sales and sales via foreign agents are the best solution to overcome the customers’ objections. In order to raise the customers’ trust and to build relationship, the co-creations of the system amendments should be practiced and the Service Level Agreement (SLA) of mutual obligations should be signed. As the cloud BMS Software is released on the LEAN principle with a Minimum Viable Product, the constant R&D and regular updating is the key activities. Intangible resources, such as reputation, know-how and cloud BMS Software (BMS SaaS), are the company’s strengths, as well as tangible one - networking of domestic customers. The company is going to avoid any partnership, except foreign sales agents. Although many processes are planned to be fully automated, the largest part of costs consists of the programmers’ salaries, less of the agents’ commissions. Revenues are streamed from installation payments and subscriptions. The company’s differentiation will be reached by the best combination of various differentiators. Due to the lack of financial resources, the business development is planned in three stages: the domestic market penetration, the foreign country-by-country penetration with the support of agents and, in case investors are willing to invest, the aggressive marketing and sales would be proceeded. Even though the company is delivering technologically excellent products, the maximum prices are limited by global players that manufacture licensed BMS softwares, but this situation is acceptable as the cloud computing based business requires less resources utility. To sum up, the cloud computing adoption makes BMS business routines more similar to cloud computing ones than the traditional HVAC BMS sector. And finally in this study, the strategic design is supplemented with guidelines of strategic objectives for three years. |
