Pipeline vs. platform type in the manufacturing industry

— Knowledge from building an ecosystem in the control cabinet industry —

Abstract

The purpose of this paper is to summarize the advantages of the platform type in business model transition from the pipeline type to the platform type based on previous research. We will then focus on the control panel-related business of Nitto Kogyo, which has a high share of the domestic manufacturing industry, and compare it with its competitor Rittal, which is expanding its business globally. There is a wave of business model transition from pipeline type to platform type. IT giants such as GAFA are a typical example. Even in the manufacturing sector, which has been considered slow to digitalize, this trend has become increasingly prevalent in recent years. In this context, the paper discusses the factors determining the success or failure of strategies for transitioning from pipeline to platform business models, considering the advantages and challenges of the services provided by both companies from the perspective of ecosystem building.