Towards IOT Ecosystems and Business Models

Abstract

The recent discourse on IOT (Internet of Things) has emphasized technology and different technology layers. Currently, there is a pressing need for research into the emerging IOT ecosystems from the business perspective. This is due to their promise to create new business models, improve business processes, and reduce costs and risks. However, the existing literature lacks understanding and empirical research on what IOT business models are and how they are connected to the underlying ecosystem. We focus on this critical research gap by studying business models in the IOT ecosystem context. In the study, we construct a framework for analyzing different types of IOT business models. Furthermore, we use case examples from the automotive industry in explaining how these models are employed in connection with ecosystems. The study concludes by giving suggestions to business model developers and researchers.