Business Models and the Internet of Things (Extended Abstract) - Interoperability and Open-Source Solutions for the Internet of Things - page 6

Business Models and the Internet of Things
(Extended Abstract)

Elgar Fleisch 1 , Markus Weinberger 2( & ) , and Felix Wortmann 1,3

1 ETH Z ü rich and University of St. Gallen, Dufourstrasse 40a,
9000 St. Gallen, Z ü rich, Switzerland
[e-mail], [e-mail]
2 Bosch Software Innovations GmbH, Dufourstrasse 40a,
9000 St. Gallen, Z ü rich, Switzerland
[e-mail]
3 University of St. Gallen, Dufourstrasse 40a,
9000 St. Gallen, Z ü rich, Switzerland

Abstract. In this extended abstract we aim on providing an overview on
business models based on the Internet of Things for assisting companies that are
currently focused on non-digital industries. In the rst section the role of the
Internet as an innovation driver for business models is reflected, secondly it is
shown how business model patterns from digital industries are becoming rele-
vant to physical industries as well. General business model logic patterns for the
Internet of Things are shown and the challenges of implementing such patterns
in hybrid business models are addressed.

1 The Influence of the Internet on Business Models to Date

In Today s market information technology (IT) has impacted business model innova-

tion. In [ 4 ] more than 300 cases of companies have been studied, that broke with the
established logic in their industries and in the process permanently changed it. Gillette,
IKEA, Nespresso and Pixar are well-known examples of such companies. Out of these
case studies a set of 55 business model patterns could be identi

'

ed. A business model

pattern is de guration of four core elements (who are the

customers? What is being sold? How is it produced? How is revenue earned?) that have
proven successful in different companies and industries. ”
It is striking that since the 1990s, IT has been extremely signi

ned “ as a de nite con

cant in many case
studies, even though there continue to be business model patterns that manage to
transform an industry without IT. On the one hand, this is not surprising since IT

rst
became widely used throughout the business world in the 1990s. On the other hand, the
concentration of IT-driven cases is impressive. A large share of the newer case studies
relies in particular on digital business model patterns.
Many of the IT-influenced business model patterns regardless of the technology

-

wave from which they emerged follow three overarching trends:

-

This article has previously been published as a Whitepaper of the Bosch Internet of Things and
Services Lab, a Cooperation of HSG and Bosch (2014) - www.iot-lab.ch .