Abstract
The increasing pervasiveness of the Internet of Things (IoT) has offered a wealth of business model opportunities. Many conventional product-based companies are seeking to increase their competitiveness by moving toward a service-based business model where IoT can bring tremendous opportunities. These traditional product-sales manufacturing firms are required to look at business models beyond their conventional product-focused, firm-centric core competence business model innovation and respond to fast changing digitalization dynamics focused on promoting service-centric solution availability instead of physical products. However, studies and literatures have not yet provided profound and actionable approaches to service business models in IoT-driven environments for manufacturing firms. This research aims to fill the gap and elaborate the guiding principle for designing service business models for the Internet of Things in manufacturing firms. The guiding principles are derived from illustration of value of the Internet of Things and systemic review of academic literatures focusing on IoT business models. Exemplary real-world IoT service business models cases are demonstrating the applicability of the proposed guiding principles. Evaluation of the applicability of guiding principles pertaining to the emerging context of IoT business model can enable researchers and practitioners to visualize and analyze service business model design in a structured and actionable way.
Highlights
Many real world Internet of Things (IoT) applications have been postulated in many industries: the domain covers conventional industrial sectors, and the consuming industry of everyday life, where IoT can bring significant improvement, even leading to new business models
IoT technology advancement opens up business opportunities for them to redesign their way of doing business with their clients and partners, together creating a co-existing value network and ecosystem
The expected rapid adoption of IoT technologies depends on the stability, diversity, and productivity of the business model innovation that is being formed around these technologies
Summary
Many real world Internet of Things (IoT) applications have been postulated in many industries: the domain covers conventional industrial sectors, and the consuming industry of everyday life, where IoT can bring significant improvement, even leading to new business models. Customer purchasing behavior under a dynamic environment is based on situational preference and analyzing customer behavior is more difficult based on today’s general customer survey; for example, firms need to adjust by means of dynamic pricing to attract customer purchasing desirability based on real time data analysis of specific customers and locations, or, in the industrial service industry, providing a real-time remote monitoring service to tailor customers’ specific needs becomes more critical and necessary. By providing additional service through precise analysis evolved with the use of a multitude of sensors, firms can help to monitor and manage their clients’ purchasing behaviors, operating equipment or manufacturing processes more precisely, raising efficiency and productivity, and creating more revenue opportunities. In certain situations, operating environments can be monitored continuously for hazardous environments where objects can take predictive corrective action to avoid
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