Internet of Things and its Business Models

The Internet of Things (IoT) is the next phase in the evolution of the internet, where everyday objects are connected to the internet, and obtain the capacity to communicate with other devices and sense their environment. Especially the IIoT is one of the most talked about industrial business concepts since the recent years, companies try to focus on business models and operational efficiency. That is why this thesis focuses on researching the industrial Internet of Things (IIoT). There is already a lot of information about the common Internet of Things but still a gap in research in the business perspective, especially surrounding the concept of business models for the IIoT. The goal of this project is to investigate different kinds of business models, how they work and how feasible they are. The need to research possible business models for an IIoT framework, as traditional business models are relevant for this study, such as the Business Model Canvas which has been proposed by Alexander Osterwalder or the Business Model Navigator by Oliver Gassmann. But there is still a lack of literature covering the business models for the IIoT. Therefore, after researching the concept of IIoT from a business perspective, I identified some useful criteria and suitable business models. With a qualitative literature study, I was able to develop an IIoT business model framework, based on the dynamics and complexity of the IIoT concept, which incorporates business strategies and provides companies with a flexible approach. The business model framework can be used in any business which is working in the industrial context. To demonstrate how the business model framework works for the IIoT, I clarified how suitable business models can improve the current business model of the very prominent and successful company Tesla. The results show how the framework of IIoT business models can be used to increase profit and work efficiently as a company. The models can also be formed to only highlight single components of an already existing business model, as it offers great flexibility, which is highly valuable in the fast evolving and innovative IIoT phenomenon