A connected future : the influence of the Internet of Things on business models and their innovation

Abstract

This dissertation investigates the impact of the Internet of Things (IoT) on the adaptation of existing business models (BM) also referred to business model innovation (BMI) and the development of new BMs, to improve the competitiveness and operational advantages of companies and other forms of organisations. IoT capabilities enable companies to identify, create, and capture new sources of corporate and customer value that define their long-term health and well-bring. Despite the practical and theoretical importance of an integrated approach to IoT, and BM and BMI thinking, research on these issues has been limited from the perspective of the capabilities, changes, and mechanisms that companies must develop and strategically implement to maximise value identification, creation, and capture through IoT enhanced BMs and BMI. Indeed, most existing research on the topic focuses on the technological and overall business potential of IoT from the standpoint of a single company or technology application. As a result, it is critical to develop an understanding of trends and identify research gaps in the fields and intersections of IoT, BM, and BMI, as well as the capabilities required to implement them.

This dissertation employs a mixed methods approach guided by the research question "How is IoT influencing the adaptation and development of new BMs and BMI?" to fill these research gaps mentioned. The primary theoretical frameworks employed are grounded theory and systematic theory, which are supported by BM, resource based and dynamic (technology) capability perspectives. This dissertation is supported by five publications that investigate business design integration issues, capabilities, and the types of BMs and BMI that are emerging because of IoT, as well as how they are applied in practise.

The incorporation of IoT into company business and operational processes, according to the findings of this dissertation and its supporting publications, demonstrate that IoT enhanced BMs and BMI that focus on a marketable system of products and services to satisfy customer needs by providing service-based consumption solutions also referred rather than product ownership are more likely to succeed in the future. These types of BM and BMI leverage IoT's increasing pervasiveness to collect enormous amounts of unique data sets that can be used to identify, create, and capture new sources of value for companies, their partners, and customers, improve customer experiences, and enable the rapid development of new capabilities. As a result of these developments, a diverse range of innovative activities and differentiated customer offerings are now possible.