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Designing Service Business Models for the Internet of Things: Aspects from Manufacturing Firms

Received: 17 August 2018     Accepted: 6 September 2018     Published: 9 October 2018
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Abstract

The increasing pervasiveness of the Internet of Things (IoT) has offered a wealth of business model opportunities. Many conventional product-based companies are seeking to increase their competitiveness by moving toward a service-based business model where IoT can bring tremendous opportunities. These traditional product-sales manufacturing firms are required to look at business models beyond their conventional product-focused, firm-centric core competence business model innovation and respond to fast changing digitalization dynamics focused on promoting service-centric solution availability instead of physical products. However, studies and literatures have not yet provided profound and actionable approaches to service business models in IoT-driven environments for manufacturing firms. This research aims to fill the gap and elaborate the guiding principle for designing service business models for the Internet of Things in manufacturing firms. The guiding principles are derived from illustration of value of the Internet of Things and systemic review of academic literatures focusing on IoT business models. Exemplary real-world IoT service business models cases are demonstrating the applicability of the proposed guiding principles. Evaluation of the applicability of guiding principles pertaining to the emerging context of IoT business model can enable researchers and practitioners to visualize and analyze service business model design in a structured and actionable way.

Published in American Journal of Management Science and Engineering (Volume 3, Issue 2)
DOI 10.11648/j.ajmse.20180302.11
Page(s) 7-22
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2018. Published by Science Publishing Group

Keywords

Business Model, Internet of Things, Business Ecosystem, Value Co-creation, Service-Dominant Logic

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Cite This Article
  • APA Style

    Chia Tai Angus Lai, Paul R Jackson, Wei Jiang. (2018). Designing Service Business Models for the Internet of Things: Aspects from Manufacturing Firms. American Journal of Management Science and Engineering, 3(2), 7-22. https://doi.org/10.11648/j.ajmse.20180302.11

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    ACS Style

    Chia Tai Angus Lai; Paul R Jackson; Wei Jiang. Designing Service Business Models for the Internet of Things: Aspects from Manufacturing Firms. Am. J. Manag. Sci. Eng. 2018, 3(2), 7-22. doi: 10.11648/j.ajmse.20180302.11

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    AMA Style

    Chia Tai Angus Lai, Paul R Jackson, Wei Jiang. Designing Service Business Models for the Internet of Things: Aspects from Manufacturing Firms. Am J Manag Sci Eng. 2018;3(2):7-22. doi: 10.11648/j.ajmse.20180302.11

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  • @article{10.11648/j.ajmse.20180302.11,
      author = {Chia Tai Angus Lai and Paul R Jackson and Wei Jiang},
      title = {Designing Service Business Models for the Internet of Things: Aspects from Manufacturing Firms},
      journal = {American Journal of Management Science and Engineering},
      volume = {3},
      number = {2},
      pages = {7-22},
      doi = {10.11648/j.ajmse.20180302.11},
      url = {https://doi.org/10.11648/j.ajmse.20180302.11},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajmse.20180302.11},
      abstract = {The increasing pervasiveness of the Internet of Things (IoT) has offered a wealth of business model opportunities. Many conventional product-based companies are seeking to increase their competitiveness by moving toward a service-based business model where IoT can bring tremendous opportunities. These traditional product-sales manufacturing firms are required to look at business models beyond their conventional product-focused, firm-centric core competence business model innovation and respond to fast changing digitalization dynamics focused on promoting service-centric solution availability instead of physical products. However, studies and literatures have not yet provided profound and actionable approaches to service business models in IoT-driven environments for manufacturing firms. This research aims to fill the gap and elaborate the guiding principle for designing service business models for the Internet of Things in manufacturing firms. The guiding principles are derived from illustration of value of the Internet of Things and systemic review of academic literatures focusing on IoT business models. Exemplary real-world IoT service business models cases are demonstrating the applicability of the proposed guiding principles. Evaluation of the applicability of guiding principles pertaining to the emerging context of IoT business model can enable researchers and practitioners to visualize and analyze service business model design in a structured and actionable way.},
     year = {2018}
    }
    

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    AU  - Chia Tai Angus Lai
    AU  - Paul R Jackson
    AU  - Wei Jiang
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    PY  - 2018
    N1  - https://doi.org/10.11648/j.ajmse.20180302.11
    DO  - 10.11648/j.ajmse.20180302.11
    T2  - American Journal of Management Science and Engineering
    JF  - American Journal of Management Science and Engineering
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    AB  - The increasing pervasiveness of the Internet of Things (IoT) has offered a wealth of business model opportunities. Many conventional product-based companies are seeking to increase their competitiveness by moving toward a service-based business model where IoT can bring tremendous opportunities. These traditional product-sales manufacturing firms are required to look at business models beyond their conventional product-focused, firm-centric core competence business model innovation and respond to fast changing digitalization dynamics focused on promoting service-centric solution availability instead of physical products. However, studies and literatures have not yet provided profound and actionable approaches to service business models in IoT-driven environments for manufacturing firms. This research aims to fill the gap and elaborate the guiding principle for designing service business models for the Internet of Things in manufacturing firms. The guiding principles are derived from illustration of value of the Internet of Things and systemic review of academic literatures focusing on IoT business models. Exemplary real-world IoT service business models cases are demonstrating the applicability of the proposed guiding principles. Evaluation of the applicability of guiding principles pertaining to the emerging context of IoT business model can enable researchers and practitioners to visualize and analyze service business model design in a structured and actionable way.
    VL  - 3
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Author Information
  • Alliance Manchester Business School, University of Manchester, Manchester, UK

  • Alliance Manchester Business School, University of Manchester, Manchester, UK

  • Antai College of Economics and Management, Shanghai Jiaotong University, Shanghai, PRC

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