One size does not fit all. Business models heterogeneity among Internet of Things architecture layers

ABSTRACT

The new paradigm known as the Internet of Things (IoT) is expected to have a significant impact on business during the next years, as it leads to the connection of physical objects and the interaction between the digital and physical worlds. While prior literature addressing the business implications arising from this paradigm has largely considered IoT as an integrated technology, in this study we examine different components of IoT and assess whether firms concerned with the development of IoT solutions have adopted original business models to exploit the opportunities offered by the specific IoT architecture layer they operate in. In turn, based on primary survey data collected on a sample of IoT Italy association's members, we explore different dimensions of the business model and offer a reinterpretation of the business model Canvas framework adapted to the IoT environment. We show that the specificities of each IoT layer require firms to adopt ad-hoc business models and focus on different dimensions of the business model Canvas. We believe our research provides some important contributions for both academics and practitioners. For the latter, we provide a tool useful for making decisions on how to design the business model for IoT applications.

KEYWORDS:

• Internet of things
• business model
• business model canvas
• IOT architecture layers
• factor analysis

Disclosure statement

No potential conflict of interest was reported by the author(s).

Notes

1 Among the EU Member States, Italy's manufacturing sector represents the second largest both in terms of number of enterprises, number of persons employed and value added. Source: https://ec.europa.eu/eurostat/statistics-explained/pdfscache/10086.pdf (last accessed February 07, 2021).

Additional information

Notes on contributors

Nicola Del Sarto

Nicola Del Sarto is a post-doctoral research fellow at Scuola Superiore Sant'Anna in Pisa. He received a Ph.D. in Management from Scuola Superiore Sant'Anna in 2019. Nicola's research interests focus on start-ups and support mechanisms such as incubators, accelerators and corporate accelerator programs. Moreover, he is investigating the processes of business creation under the Open Innovation paradigm. Nicola holds a Master degree in economics from University of Pisa and a postgraduate master in Management, innovation and engineering of services from Scuola Superiore Sant'Anna. Nicola's work has been published in high-quality peer reviewed journals and presented at international conferences.

Fabrizio Cesaroni

Fabrizio Cesaroni is an associate professor of Management at the Department of Economics, University of Messina, Italy. He obtained a Ph.D. in Economics and Management of Innovation at the Scuola Superiore Sant'Anna, and has been visiting professor at the University ‘Carlos III’ of Madrid, Spain. His main research interests are in the management of technological innovation and intellectual property rights, and in firms’ technology strategies. He is also interested in the management of technology transfer processes from non-profit research organisations (universities and public research laboratories) to industry. He has published research papers in national and international journals and in books.

Alberto Di Minin

Alberto Di Minin is an associate professor of Management at the Scuola Superiore Sant'Anna in Pisa, where he is teaching in the Master of Innovation Management program, Ph.D. in Management and he is supervising Ph.D. and undergraduate students. Alberto is a research fellow with the Berkeley Roundtable on the International Economy, University of California – Berkeley. Alberto's research deals with Open Innovation, appropriation of innovation and Science and Technology Policy. In particular, he focuses on open innovation and new business models. He also works on technology transfer, intellectual property and R&D management.

Andrea Piccaluga

Andrea Piccaluga is a professor of Innovation Management at the Istituto di Management, Scuola Superiore Sant'Anna, where he is coordinator of the PhD programme in Management. He is the president of Netval (www.netval.it), the Italian network of University Technology Transfer Offices. He has also launched DBA programmes at Scuola Sant'Anna (www.dba.idm.sssup.it). He holds a Ph.D. from Scuola Superiore Sant'Anna and a Master in Technology and Innovation Management from SPRU (University of Sussex, Brighton). He has published books and papers in the field of R&D management and technology transfer.