Production companies are required to notice the importance of the paradigm shift from “use value” into “value in use” about their products and services. Value co-creative activity between the producers and consumers is essential to realise the paradigm shift in practical business case. The IoT(Internet of Things) is a powerful infrastructure to digitalise and increase the integration of vertical and horizontal value chains in the business process. We propose a value co-creative production system model under IoT environment with an innovative “Thinking factory” concept. Our current target is the rubber industry which is required to provide tailor-made products as human-machine delicate interface.