Volume 3, Issue 2, March 2018, Page: 7-22
Designing Service Business Models for the Internet of Things: Aspects from Manufacturing Firms
Chia Tai Angus Lai, Alliance Manchester Business School, University of Manchester, Manchester, UK; Antai College of Economics and Management, Shanghai Jiaotong University, Shanghai, PRC
Paul R Jackson, Alliance Manchester Business School, University of Manchester, Manchester, UK
Wei Jiang, Antai College of Economics and Management, Shanghai Jiaotong University, Shanghai, PRC
Received: Aug. 17, 2018;       Accepted: Sep. 6, 2018;       Published: Oct. 9, 2018
DOI: 10.11648/j.ajmse.20180302.11      View  375      Downloads  20
Abstract
The increasing pervasiveness of the Internet of Things (IoT) has offered a wealth of business model opportunities. Many conventional product-based companies are seeking to increase their competitiveness by moving toward a service-based business model where IoT can bring tremendous opportunities. These traditional product-sales manufacturing firms are required to look at business models beyond their conventional product-focused, firm-centric core competence business model innovation and respond to fast changing digitalization dynamics focused on promoting service-centric solution availability instead of physical products. However, studies and literatures have not yet provided profound and actionable approaches to service business models in IoT-driven environments for manufacturing firms. This research aims to fill the gap and elaborate the guiding principle for designing service business models for the Internet of Things in manufacturing firms. The guiding principles are derived from illustration of value of the Internet of Things and systemic review of academic literatures focusing on IoT business models. Exemplary real-world IoT service business models cases are demonstrating the applicability of the proposed guiding principles. Evaluation of the applicability of guiding principles pertaining to the emerging context of IoT business model can enable researchers and practitioners to visualize and analyze service business model design in a structured and actionable way.
Keywords
Business Model, Internet of Things, Business Ecosystem, Value Co-creation, Service-Dominant Logic
To cite this article
Chia Tai Angus Lai, Paul R Jackson, Wei Jiang, Designing Service Business Models for the Internet of Things: Aspects from Manufacturing Firms, American Journal of Management Science and Engineering. Vol. 3, No. 2, 2018, pp. 7-22. doi: 10.11648/j.ajmse.20180302.11
Copyright
Copyright © 2018 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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