Patterns of business model innovation for advancing IoT platforms
Journal
Journal of Service Management
Type
journal article
Date Issued
2022-01-03
Author(s)
Markfort, Lino
;
Arzt, Alexander
;
Kögler, Philipp
;
;
Gebauer, Heiko
;
Haugk, Sebastian
;
Leyh, Christian
;
Abstract
Purpose – The emergence of Internet of Things (IoT) platforms in product companies opens up new data-driven business opportunities. This paper looks at the emergence of these IoT platforms from a business-model perspective.
Design/methodology/approach – The study applies a mixed method with two research studies: Study I–a cluster analysis based on a quantitative survey, and Study II–case studies based on qualitative interviews.
Findings – The findings reveal that there is no gradual shift in a company’s business model, but in fact three distinct and sequential patterns of business model innovations: (1) platform skimming, (2) platform revenue generation and (3) platform orchestration.
Research limitations/implications – The results are subject to the typical limitations of both quantitative and qualitative studies.
Practical implications – The results provide guidance to managers on how to modify the components of the business model (value proposition, value creation and/or delivery and profit equation) in order to enable platforms to advance.
Social implications – As IoT platforms continue to advance, product companies achieve better performance in terms of productivity and profitability, and more easily secure competitive advantages and jobs.
Originality/value – The paper makes three original contributions: (1) it is the first quantitative study on IoT platforms in product companies, (2) identifies three patterns of business model innovations and (3) offers a first process perspective for understanding the sequence of these patterns as IoT platforms advance.
Design/methodology/approach – The study applies a mixed method with two research studies: Study I–a cluster analysis based on a quantitative survey, and Study II–case studies based on qualitative interviews.
Findings – The findings reveal that there is no gradual shift in a company’s business model, but in fact three distinct and sequential patterns of business model innovations: (1) platform skimming, (2) platform revenue generation and (3) platform orchestration.
Research limitations/implications – The results are subject to the typical limitations of both quantitative and qualitative studies.
Practical implications – The results provide guidance to managers on how to modify the components of the business model (value proposition, value creation and/or delivery and profit equation) in order to enable platforms to advance.
Social implications – As IoT platforms continue to advance, product companies achieve better performance in terms of productivity and profitability, and more easily secure competitive advantages and jobs.
Originality/value – The paper makes three original contributions: (1) it is the first quantitative study on IoT platforms in product companies, (2) identifies three patterns of business model innovations and (3) offers a first process perspective for understanding the sequence of these patterns as IoT platforms advance.
Language
English
HSG Classification
contribution to scientific community
Refereed
Yes
Publisher
Emerald
Volume
33
Number
1
Subject(s)
Eprints ID
265558
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10-1108_JOSM-11-2020-0429.pdf
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