The influence of the Industrial Internet of Things on business models of established manufacturing companies – A business level perspective

Daniel Kiel, Christian Arnold and Kai-Ingo Voigt

Technovation, 2017, vol. 68, issue C, 4-19

Abstract: The emergence of the Industrial Internet of Things (IIoT) poses a large impact on established business models of manufacturing companies. This study aims at analyzing the influence of the IIoT on these business models from a business level perspective. In particular, it focuses on the interrelationships between business model component changes. While the sparse body of extant management literature examines just a subset of business model elements as affected by the IIoT, a framework comprising an entire set of elements is provided. Besides, their direct and indirect interrelationships, and the most important changes in each of the elements, are investigated. For this purpose, an exploratory multiple case study approach is employed, which is based on relevant IIoT-related experiences of 76 German manufacturing companies. By triangulating data from semi-structured expert interviews and archival company material, the study provides in-depth insights and a better understanding of IIoT-driven effects on manufacturing business models. It contributes to extant management literature by revealing the value proposition, internal infrastructure management, and customer relationships predominantly influenced by the IIoT. Moreover, it is shown that IIoT-triggered business model changes are offer-driven, particularly by production and process optimization within customers' production systems. These value proposition changes result in subsequent modifications of the remaining business model elements.

Keywords: Industrial Internet of Things; Industrie 4.0; Business model; Business model innovation; Expert interviews; Multiple case study; Manufacturing (search for similar items in EconPapers)
JEL-codes: L00 L60 M15 O32 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (82)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0166497216303169
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:techno:v:68:y:2017:i:c:p:4-19

DOI: 10.1016/j.technovation.2017.09.003

Access Statistics for this article

Technovation is currently edited by Jonathan Linton

More articles in Technovation from Elsevier
Bibliographic data for series maintained by Catherine Liu ().