Knowledge

Keyword: Digital Business models

book

Maritime Digital Business Models: The Case of D/S Norden, 2015–2020

Martin Jes Iversen

This chapter concerns the digitalization of the maritime sector with a specific focus on business models. It is the argument of the article that current research in Maritime Informatics is focused on technological optimizations and thus lacks a commercial aspect in order to grasp the importance of digitalization in the shipping sector. In order to fill this gap a business model framework is suggested in the article with focus on the level of respectively customer-based-value-propositions and land versus sea. Then follows the empirical case of the Danish shipping company Norden and the development from 2015 to 2020. Norden is a leading commercial operator of dry bulk and product tanker vessels with more than 350 vessels in operation. The conclusion of the case is that Norden so far has regarded digitalization as tool for decision taking processes, which in the long-term should lead to compete advantages in terms of more efficient decisions based on big data and advanced algorithms. The shipping company has on the other hand decided not to use digitalization for the development of new software products and in accordance to presented digitalization matrix focused on indirect value proposition for the customers rather than direct customer-based initiatives. This focus confirms the hypothesis that digitalization in the dry bulk and tanker segment will often be based on indirect value propositions while digitalization in container-shipping might have a more direct relation to specific customer-based value propositions. This distinction is linked to the business-to-business nature of dry bulk and tanker and the more mixed business to business/business to consumer nature of container shipping—in. particular when the container shipping is integrated to the value chains and thus moved closer to the ultimate customers’ preferences and services.

New Maritime Business : Uncertainty, Sustainability, Technology and Big Data / 2021
Go to book