On Developing Business Models for Internet of Things-Based Products: Process and Chalenges

Abstract

Many companies nowadays are struggling to understand the unprecedented complexity of developing business models for products and services based on the Internet of Things (IoT). This article aims at investigating what are the elements to be taken into account in order to create a business model for IoT-based products/services and what are the main challenges faced in this process. To address these questions, we review the literature on the creation of business models for the IoT and we analyze data from an action research involving the generation of a business model for an IoT-based product -a smart door lock – in a small company. We explore how this process occurred and the challenges faced.