The influence of the Industrial Internet of Things on business models of established manufacturing companies – A business level perspective

Abstract

The emergence of the Industrial Internet of Things (IIoT) poses a large impact on established business models of manufacturing companies. This study aims at analyzing the influence of the IIoT on these business models from a business level perspective. In particular, it focuses on the interrelationships between business model component changes. While the sparse body of extant management literature examines just a subset of business model elements as affected by the IIoT, a framework comprising an entire set of elements is provided. Besides, their direct and indirect interrelationships, and the most important changes in each of the elements, are investigated. For this purpose, an exploratory multiple case study approach is employed, which is based on relevant IIoT-related experiences of 76 German manufacturing companies. By triangulating data from semi-structured expert interviews and archival company material, the study provides in-depth insights and a better understanding of IIoT-driven effects on manufacturing business models. It contributes to extant management literature by revealing the value proposition, internal infrastructure management, and customer relationships predominantly influenced by the IIoT. Moreover, it is shown that IIoT-triggered business model changes are offer-driven, particularly by production and process optimization within customers' production systems. These value proposition changes result in subsequent modifications of the remaining business model elements.