Generating Value from IoT Through International Business Models - A Multi-Case Study on Multinational Corporations

Abstract

Current events and future trends point towards the importance of Internet of Things (IoT) and companies needing to implement changes to their business models in order to capitalize and generate the potential value that IoT can emit. Even though these future trends have been highlighted by multiple sources there are currently a lack of empirical supported research that studies IoT from a business perspective and investigates how to incorporate it into an international business model, as well as the challenges of creating and capturing the value generated from it, especially in the international business context. To address this research gap a multi-case study was carried out on six companies from various industries. The authors utilized the business model canvas (BMC) as a main framework when carrying out interviews and have refined the framework into an international IoT BMC. Through the multiple-case study it was revealed that the companies had implemented multiple adaptations to their BMC building blocks in order to generate value through IoT. The most important adaptations made were to Customer Relationship, Revenue Streams, and the three Value Creation block. An IoT ecosystem was also considered an important aspect for firms in the value creation process, where the company's role within the ecosystem can vary from having a central part to focusing on a more niche role. Finally, it was found that IoT has an effect on firms international business model and leads to an increased standardization of the company's international operations.