Business Models for the Internet of Things Environment

Over the past few years, the widespread use of the Internet and rapid development of Internet-based technologies has resulted also into shorter life cycles of product and services, requiring thus faster changing business models. This paper provides an overview of business models for Internet of Things, Services and People applications. The concept of the Internet of Things and Services envisions physical devices and appliances to be used as easily as a web service and seamlessly integrated into networked applications with required functionality. Technologically this concept is clear, and several smart applications are currently under development (see e.g. iCore, Hydra, Confidence or IoT@Work projects). However, the business perspective of information as an asset in its own right remains an open issue. To handle this issue we apply an originally value-based requirement technique, e3-value, to model value creation and value exchange within an e-business network of multiple business actors. Using this approach the business activity can be reduced to its core elements, which in the simplest case comprise the value proposition, distribution channels and the customers of the company, explaining how a multi-actor network creates, distributes and consumes value by production of a good or providing a service. (C) 2014 The Authors. Published by Elsevier B.V.