Understanding business model in the Internet of Things industry

This research presents the results of an exploratory study of how organisations operating in the Internet of Things (IoT) industry are building and innovating their business model (BM). Using an explorative sequential approach through the multiple-case study method, we apply the “Canvas BM” framework to explore the BM of three companies operating in IoT industry, namely Intel, Solair, and Apio. The paper finds the most important building blocks - key activities, key resources, and value proposition - and most critical related factors enabling IoT-oriented organisations to create and capture value. Furthermore, our results also suggest that the main difference in the processes of BM building and innovation depend on the different capabilities and competencies possessed by organisations. This study therefore advances the theoretical understanding of the critical factors for the value creation process in the IoT industry's organisations and offers interesting implications for management theory and practice.