The emergence of cyber-physical systems (CPS), cyber-physical production systems and smart products is
fundamentally changing the approach to product development. The paper addresses the current challenges
in the development and design of product innovations arising from the emergence of cyber-physical systems,
cyber-physical production systems and smart products, and the resulting opportunities. To provide a basic
overview of the existing challenges, results from studies, scientific publications and experiences from
industry are described. These results from industry are obtained from project work with a globally operating
German manufacturing company. In the course of these challenges, companies must reorient themselves in
terms of their products, services and find their role in changing ecosystems. The aim is to show the extent to
these challenges addressed in science and the state of the art. One approach to address these challenges is
described in this paper using the technical concept of the asset administration shell (AAS) and the CRISPDM methodology. The goal is to provide insights in the early stages of product creation to drive incremental
innovation or product improvement to facilitate the development of successful CPS and smart products.
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