A KPI Set for Steering the IoT Business in Product Companies

 

Overview: The Internet of Things (IoT) offers product companies the opportunity to develop an IoT business. Existing performance measurement systems (PMS) are unsuitable for measuring and managing the business logic of IoT business. Based on research conducted with 31 product companies, we present three measurement traps, a key performance indicators (KPI) set suited for steering IoT business in product companies, and three recommendations for implementing the KPI set. Companies can use the KPI set to manage their IoT businesses more effectively and avoid the measurement traps.

Keywords: :

• Internet of Things
• Performance management
• Performance measurement system
• Key performance indicators
• Performance metrics

Additional information

Notes on contributors

Claudio Lamprecht

Claudio Lamprecht is a PhD candidate at the Bosch IoT Lab at the University of St. Gallen (HSG), where he investigates equipment-as-a-service business models. He has an MA in accounting and finance from the University of St. Gallen, a BSc in business administration from the University of Liechtenstein, and an engineering degree (Ing.) in technical computer science. During his studies, he gained professional experience in several industries, including surveying and engineering (Leica Geosystems), banking (VP Bank AG), and automotive (BMW). [email protected]

Heiko Gebauer

Heiko Gebauer is a visiting professor of international and strategic management at Linköping University, Sweden. He also heads the Data Mining and Value Creation project at the Fraunhofer IMW and works at the Bosch IoT Lab of the University of St. Gallen. He investigates three empirical phenomena—service, scaling, and digitization paradoxes—and has published various articles on these phenomena in academic and management journals. He also serves as an academic adviser to a variety of companies. After studying business administration he received his PhD in management from the Institute of Technology Management at the University of St. Gallen. [email protected]

Elgar Fleisch

Elgar Fleisch is a professor of information and technology management at ETH Zurich and University of St. Gallen. He and his team aim to understand and design the ongoing merger between the physical and digital worlds. His work focuses on applications, social and economic impacts, and infrastructures of mobile and ubiquitous computing. His research has appeared in several international journals such as Management Science and Nature Energy. He is a cofounder of several university spinoffs and serves on multiple academic steering committees and management boards. After studying information systems, he received his PhD in machine learning from the University of Vienna. [email protected]

Felix Wortmann

Felix Wortmann is professor, senior lecturer, and scientific director of the Bosch IoT Lab, a collaboration between the University of St. Gallen (HSG), ETH Zurich, and the Bosch Group. His research interests include the Internet of Things, machine learning, blockchain, and business model innovation in manufacturing, mobility, health care, and energy. From 2006 to 2009, he worked as an assistant to the executive board of SAP. After studying information systems, he received his PhD in management from the University of St. Gallen. [email protected]