Dominik Bilgeri

IoT business models in an industrial context

Abstract There is a broad consensus that the transformative power of the Internet of Things (IoT) will affect all kinds of industries; or, to put it in a more optimistic light, that almost no domain is excluded from the opportunities to leverage the IoT. But, what does this mean for the future of industrial processes? This article introduces the concept of high-resolution management (HRM). IoT enables the collection of high-resolution data for the physical world where, as in the digital world, every aspect of business operations can be measured in real-time. This capability facilitates high-resolution management, such as short optimization cycles in industrial production, logistics and equipment efficiency, comparable to methods like A/B-Testing or Search Engine Optimization, which are state of the art in digital business. We take the following two perspectives on leveraging high-resolution management. First, through greater insights into their industrial processes, companies that apply HRM in their operations are able to achieve higher efficiency, quality and flexibility. The example of vehicle fleet management illustrates this effect. Second, we build upon the St. Gallen Business Model Navigator in order to look in greater detail on how the IoT affects industrial processes. Gassmann et al. Gassmann, O., Frankenberger, K., and Csik, M. (2014). The business model navigator: 55 models that will revolutionise your business. Financial Times. introduce 55 generic business model patterns, of which our extended research identified 20 that could profit significantly from the IoT Fleisch, E., Weinberger, M., and Wortmann, F. (2014). Geschäftsmodelle im Internet der Dinge. HMD Praxis der Wirtschaftsinformatik, 51(6), 812–826; Gassmann, O., Frankenberger, K., and Csik, M. (2014). The business model navigator: 55 models that will revolutionise your business. Financial Times. . Analyzing these 20 patterns allowed for the identification of six key components: Remote Usage and Condition Monitoring, Object Self Service, Digital Add-on, Digital Lock-in, Product as a Point of Sales and Physical Freemium. These building blocks help companies to supply HRM-supported offerings. Finally, the example of remote monitoring of process parameters shows that these business model components can also be deployed to create offerings that enable others to apply HRM.

INTERNET OF THINGS BUSINESS MODEL INNOVATION AND THE STAGE-GATE PROCESS: AN EXPLORATORY ANALYSIS

Large manufacturing companies will in future be continuously challenged to develop and implement new IoT-related business models. Existing research offers interesting insights on high-level stages of business model innovation (BMI) processes in general. However, only little is known about the presence of main gates in BMI processes and even less about the underlying decision criteria applied at these gates. To shed more light on this research field, 27 expert interviews with employees from eight companies across the IoT ecosystem were conducted. The expert interviews reveal that, despite the increasing popularity of (radically) new innovation approaches, two main decision points can be identified across BMI processes. These findings are a first explorative step towards a better understanding of IoT adoption and provide a starting point for interesting future research avenues.

Ertragsmodelle im Internet der Dinge

Das Internet der Dinge (IoT) und Industrie 4.0 sind relativ junge Phanomene, die vollig neue Moglichkeiten versprechen. Es stellt sich fur viele Unternehmen daher die Frage, wie sie von diesen technologischen Entwicklungen auch wirtschaftlich profitieren konnen. Vor diesem Hintergrund ist es das Ziel des Beitrags, die Entwicklung von Ertragsmodellen im IoT und speziell Industrie 4.0 zu beleuchten und damit Anbietern von IoT-Losungen Hilfestellungen fur deren Gestaltung (in Form eines Entscheidungsbaumes inklusive Normstrategien) zu bieten. Dazu werden in der Praxis relevante IoT-Ertragsmodellmuster sowie deren Wirtschaftlichkeit (im Sinne der langfristigen Profitabilitat) analysiert. In einem ersten Schritt wird ein Untersuchungsrahmen fur unterschiedliche Ertragsquellen im Kontext IoT definiert. Auf der Basis von Expertengesprachen und entsprechenden Fallstudien werden im Anschluss sechs IoT-Ertragsmodellmuster dargestellt. Diese IoT-Ertragsmodellmuster lassen sich jeweils einem von drei Ertragsmodelltypen – Produkt-basiert, Service-basiert, hybrid – zuordnen. Im Rahmen einer einfachen Cashflow- und Kapitalwertanalyse wird aufgezeigt, dass sich fur alle drei Ertragsmodelltypen profitable Geschaftsmodelle erstellen lassen, die jedoch teilweise mit Normstrategien flankiert werden mussen. Abschliesend reflektiert der Beitrag Implikationen fur Praxis und Forschung.