Building an Implementation Model of IoT and Big Data and Its Improvement

Abstract

Emerging technologies had marked the emergence of the Industry 4.0 era. Despite the problems experienced with COVID-19, many experts believe that Industry 4.0 is an inevitable reality that many businesses must face in the future. One of those technologies is the Internet of Things (IoT), which may generate so-called “big data” that will be useful for business insight. However, after performing a rigorous literature review, articles related to the impact of the IoT and big data implementations for business performance in the form of a model were rarely found. Among the available literature, some elements that may be considered are: (1) business process improvement; (2) marketing strategies; (3) business management innovation; and (4) business performance. Therefore, this paper proposes an implementation model of IoT and big data to pursue business performance. Thus, a survey was conducted with managerial respondents from the manufacturing industry. For analysis purposes, a partial least squares structural equation modeling (PLS-SEM) methodology was implemented to examine the fitness of the model. The analysis was conducted in Smart PLS 3.0, and the goodness of fit (GoF) calculated for this model was 0.63, larger than the required 0.38 for a robust and accurate result. This model was implemented in a sample manufacturing company to seek improvement. Regarding this effort, several improvements were added as input by the manufacturing players to enhance the model.