On Developing Business Models for Internet of Things-Based Products: Process and Chalenges

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 (IoT). 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 the IoT and we analyze data from an action research involving the generation of a business model for an IoT-based product-a smart door lock-in a small company. We explore how this process occurred and the challenges faced.

The roles of internet of things technology in enabling servitized business models: A systematic literature review

“…Transactional Mejtoft (2011, Atzori et al (2015), Lee and Lee (2015), Wünderlich et al (2015), Gerpott and May (2016), Kralewski (2016), Klein et al (2017) Facilitate…”

“…One challenge for providers is privacy concerns, as IoT allows firms to access and collect information that may be sensitive for customers (Klein et al, 2017;Wünderlich et al, 2015). Hence, firms need to ensure that sensitive information is protectedthis, however, may be difficult if services are offered in partnership with third parties, for example, if repair functions are outsourced (Fleisch et al, 2014).…”

Circular Economy and Business Transformation in European Furniture Industry

“…Furthermore, the front-end elements include key activities, which are the core processes and activities that the company performs to create and deliver its value proposition (Witek-Hajduk & Zaborek, 2016). On the other hand, the back-end elements of a Business Model include key resources, which are the physical, intellectual, and human resources that the company utilizes to execute its key activities and deliver its value proposition (Klein et al, 2017), and the distribution and communication channels that the company uses to reach its customers and deliver its value proposition (Ghezzi, 2012). Moreover, the backend elements include customer relationship, which refers to the way the company interacts and maintains relationships with its customers in order to ensure customer satisfaction and loyalty (Witek-Hajduk and Zaborek, 2016).…”

Convergence or Divergence among Business Models of Public Bus Transport Authorities across the Globe: A Fuzzy Approach

“…BMC represents a significant breakthrough in the systematic modeling of value configuration, delivery, and commercialization because it is technology agnostic, user-friendly, comprehensive, and focuses on the interaction between components of the model [47]. The BMC allows mapping the interactions between resources and competencies of an enterprise with potential customer segments, channels, and value propositions as well as their financial outcomes.…”