Abstract
Many companies nowadays are struggling to understand the unprecedented complexity of developing business models for products and services based on the Internet of Things. This article aims at investigating what are the elements to be taken into account in order to create a business model for IoT-based products/services and what are the main challenges faced in this process. To address these questions, we review the literature on the creation of business models for IoT and we analyze data from an action research involving the generation of a business model for an IoT-based product - a smart locker – in a small company. We explore how this process occurred and the challenges faced.
Highlights
The technologies of the Internet of Things (IoT) are increasingly embedded in previously nondigital products of everyday life, which impacts the nature of goods and services, and, in consequence, on overarching business models (Yoo et al, 2012, Turber & Smiela, 2014; Weinberger et al, 2016)
This article aims at investigating two research questions: (1) what are the elements to be considered to create a business model for IoT-based products/services? (2) What are the main challenges faced in this process? To address these questions, we review the literature on business models for the IoT and we analyze data from an action research involving the generation of a business model for an IoT-based product - a smart lock – in a small company
This article aimed to investigate what are the main elements to be considered to create a business model for IoT-based products/services and what are the key challenges faced in this process
Summary
The technologies of the Internet of Things (IoT) are increasingly embedded in previously nondigital products of everyday life, which impacts the nature of goods and services, and, in consequence, on overarching business models (Yoo et al, 2012, Turber & Smiela, 2014; Weinberger et al, 2016). A mediocre technology used in a great business model can be better than a great technology explored in a poor business model (Chesbrough, 2010); we must understand how to generate proper business models for IoT-based products and services (Dijkman et al, 2015; Turber & Smiela, 2014; Weinberger et al, 2016)
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