Fraunhofer Institute for
Systems and Innovation Research ISI


Next Generation Production Systems

NEXT is a so called Integrated Project (IP) funded by the European Commission to design and prototypically implement the next generation of machine tools. 24 partners from 8 European countries cooperate in this project. These partners represent industrial manufacturers and users of production systems as well as well known research institutes, associations and implementation partners. The project started in September 2005 and will continue until 2009.

Besides technical innovations for the machine tool, one part of the NEXT project also focuses on the development and assessment of new business models for machine tool manufacturers. Fraunhofer ISI and the Italian research institute ITIA are in charge of this work package. In the future, to satisfy customer needs and to be able to compete against manufacturers from low wage countries, producers of machine tools will have to offer additional services to their customers beyond development, construction and marketing of the machinery. Assisting customers in the use of the machinery by providing services and production personnel, offering innovative financing models and periodic modernization as well as taking back machinery rank among the challenges. One of these new business models could go as far as follows: The customer will no longer purchase the machinery on which to produce but the manufacturer of the machinery will operate it and will be paid by the customer per piece produced on this machine (pay–on–production).

The experiences pioneering companies have gathered so far with this kind of business models are to be collected and analyzed in a first step of the project. Case studies of machine tool producers, particularly from European countries with a competitive machine tool industry such as Germany, Italy, Switzerland, and Spain, provide a basis. Against this background the project team aims at developing business models offering suitable solutions for various demand situations which create a win-win situation for both machine tool manufacturers and their customers. In order to implement such business models, instruments are to be developed that are supposed to assist machine tool producers with adapting the design of new machine tools to this business model, to reduce the risk of such business models or to establish cooperation patterns between machine tool manufacturers, customers and other partners such as banks, etc. Last but not least in this track of the NEXT project pilot solutions of innovative business models are to be prototypically implemented in the organization of the industrial project partners.



Commissioned by

European Commission


Fatronik (Spain), ITIA (Italy), CECIMO (Belgium) and several industrial companies


Copani, Giacomo; Marvulli, Silvia; Lay, Gunter; Biege, Sabine; Buschak, Daniela (2010): “Business model innovation paths and success in the machine tool industry”, in: Sakao, Tomohiko; Larsson, Tobias; Lindahl, Mattias (eds.): Industrial Product-Service Systems (IPS2) - Proceedings of the 2nd CIRP IPS2 Conference, pp. 437-444.

Lay, G.; Biege, S.; Buschak, D., Copani, G., Marvulli, S.: “Early Stage Assessment of Service-based Business Concepts”, ”, in: Sakao, Tomohiko; Larsson, Tobias; Lindahl, Mattias (eds.): Industrial Product-Service Systems (IPS2) - Proceedings of the 2nd CIRP IPS2 Conference, pp. 253-260.

Lay, Gunter; Schröter, Marcus; Biege, Sabine (2009): “Service based business concepts: A typology for Business-to-Business-markets”, European Management Journal, 27 (6), pp. 442-455.

Lay, Gunter; Schröter, Marcus; Armbruster, Heidi (2009): “TCO als Ausgangspunkt für die Entwicklung dienstleistungsbasierter Geschäftsmodelle in der Investitionsgüterindustrie”, In: Schweiger, S. (Hrsg.): Lebenszykluskosten optimieren. Paradigmenwechsel für Anbieter und Nutzer von Investitionsgütern, Gabler, Wiesbaden, 2009.

Biege, Sabine; Copani, Giacomo; Lay, Gunter; Marvulli, Silvia; Schröter, Marcus (2009): “Innovative Service-Based Business Concepts for the Machine Tool Building Industry”, In: Roy, Rajkumar; Essam, Shehab (eds.): Industrial Product-Service Systems (IPS2) - Proceedings of the 1st CIRP IPS2 Conference, pp. 173-179.

Biege, Sabine; Lay, Gunter; Buschak, Daniela (2008): „Mapping Service Processes in Manufacturing Companies“, Proceedings of "The 3rd World Conference on Production and Operations Management", POM TOKYO 2008 “Manufacturing Fundamentals: Necessity and Sufficiency”, August 5-8, 2008, Tokyo, Japan, pp. 2016-2030.

Please visit also our project website
NEXT project website