IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v140y2022icp245-263.html
   My bibliography  Save this article

Conceptualizing and Assessing the Value of Internet of Things Solutions

Author

Listed:
  • Baltuttis, Dennik
  • Häckel, Björn
  • Jonas, Claudius Michael
  • Oberländer, Anna Maria
  • Röglinger, Maximilian
  • Seyfried, Johannes

Abstract

The Internet of Things (IoT) is associated with enormous economic potential. To date, however, actual revenues remain below expectations. This circumstance particularly affects IoT solution providers in industrial contexts where effective value assessment is critical for market success. Since a deeper understanding of how IoT solutions create value is required to address this challenge, we develop a framework and corresponding value levers for assessing the value of IoT solutions along an archetypical yet configurable business-to-business-to-consumer (B2B2C) value chain. Taking the perspective of an IoT solution provider in the industrial context, we evaluate the framework with five such solution providers and apply the value levers for an initial value quantification. Our work extends previous research and furthers knowledge on the business value of IT and IoT. It also supports practitioners in assessing IoT value potential.

Suggested Citation

  • Baltuttis, Dennik & Häckel, Björn & Jonas, Claudius Michael & Oberländer, Anna Maria & Röglinger, Maximilian & Seyfried, Johannes, 2022. "Conceptualizing and Assessing the Value of Internet of Things Solutions," Journal of Business Research, Elsevier, vol. 140(C), pages 245-263.
    • Handle: RePEc:eee:jbrese:v:140:y:2022:i:c:p:245-263
    DOI: 10.1016/j.jbusres.2021.10.063
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296321007906
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbusres.2021.10.063?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Lee, In & Lee, Kyoochun, 2015. "The Internet of Things (IoT): Applications, investments, and challenges for enterprises," Business Horizons, Elsevier, vol. 58(4), pages 431-440.
    2. Yan, Yuwei & Huang, Chuanchao & Wang, Qian & Hu, Bin, 2020. "Data mining of customer choice behavior in internet of things within relationship network," International Journal of Information Management, Elsevier, vol. 50(C), pages 566-574.
    3. Gimpel, Gregory, 2020. "Bringing dark data into the light: Illuminating existing IoT data lost within your organization," Business Horizons, Elsevier, vol. 63(4), pages 519-530.
    4. Henrik Sternberg & Gunnar Stefansson & Emma Westernberg & Rikard Boije af Gennäs & Erik Allenström & Malin Linger Nauska, 2012. "Applying a lean approach to identify waste in motor carrier operations," International Journal of Productivity and Performance Management, Emerald Group Publishing, vol. 62(1), pages 47-65, November.
    5. Tzeng, Shiou-Fen & Chen, Wun-Hwa & Pai, Fan-Yun, 2008. "Evaluating the business value of RFID: Evidence from five case studies," International Journal of Production Economics, Elsevier, vol. 112(2), pages 601-613, April.
    6. Haaker, Timber & Ly, Pham Thi Minh & Nguyen-Thanh, Nhan & Nguyen, Hanh Thi Hong, 2021. "Business model innovation through the application of the Internet-of-Things: A comparative analysis," Journal of Business Research, Elsevier, vol. 126(C), pages 126-136.
    7. Daniel Kiel & Julian M. Müller & Christian Arnold & Kai-Ingo Voigt, 2017. "Sustainable Industrial Value Creation: Benefits And Challenges Of Industry 4.0," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 21(08), pages 1-34, December.
    8. Christian Arnold & Daniel Kiel & Kai-Ingo Voigt, 2016. "How The Industrial Internet Of Things Changes Business Models In Different Manufacturing Industries," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(08), pages 1-25, December.
    9. Sam Ransbotham & Robert G. Fichman & Ram Gopal & Alok Gupta, 2016. "Special Section Introduction—Ubiquitous IT and Digital Vulnerabilities," Information Systems Research, INFORMS, vol. 27(4), pages 834-847, December.
    10. Joseph G. Walls & George R. Widmeyer & Omar A. El Sawy, 1992. "Building an Information System Design Theory for Vigilant EIS," Information Systems Research, INFORMS, vol. 3(1), pages 36-59, March.
    11. Brous, Paul & Janssen, Marijn & Herder, Paulien, 2020. "The dual effects of the Internet of Things (IoT): A systematic review of the benefits and risks of IoT adoption by organizations," International Journal of Information Management, Elsevier, vol. 51(C).
    12. Hubert Österle & Boris Otto, 2010. "Consortium Research," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 2(5), pages 283-293, October.
    13. Reijers, H. A. & Liman Mansar, S., 2005. "Best practices in business process redesign: an overview and qualitative evaluation of successful redesign heuristics," Omega, Elsevier, vol. 33(4), pages 283-306, August.
    14. Youngjin Yoo & Ola Henfridsson & Kalle Lyytinen, 2010. "Research Commentary ---The New Organizing Logic of Digital Innovation: An Agenda for Information Systems Research," Information Systems Research, INFORMS, vol. 21(4), pages 724-735, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ancillai, Chiara & Sabatini, Andrea & Gatti, Marco & Perna, Andrea, 2023. "Digital technology and business model innovation: A systematic literature review and future research agenda," Technological Forecasting and Social Change, Elsevier, vol. 188(C).
    2. Mariani, Marcello & Borghi, Matteo, 2019. "Industry 4.0: A bibliometric review of its managerial intellectual structure and potential evolution in the service industries," Technological Forecasting and Social Change, Elsevier, vol. 149(C).
    3. Li, Zhongshun & Xie, Weihong & Wang, Zhong & Wang, Yongjian & Huang, Danyu, 2023. "Antecedent configurations and performance of business models of intelligent manufacturing enterprises," Technological Forecasting and Social Change, Elsevier, vol. 193(C).
    4. Li, Ying & Dai, Jing & Cui, Li, 2020. "The impact of digital technologies on economic and environmental performance in the context of industry 4.0: A moderated mediation model," International Journal of Production Economics, Elsevier, vol. 229(C).
    5. Zahra, Shaker A. & Liu, Wan & Si, Steven, 2023. "How digital technology promotes entrepreneurship in ecosystems," Technovation, Elsevier, vol. 119(C).
    6. E. W. T. Ngai & J. K. L. Poon & F. F. C. Suk & C. C. Ng, 2009. "Design of an RFID-based Healthcare Management System using an Information System Design Theory," Information Systems Frontiers, Springer, vol. 11(4), pages 405-417, September.
    7. Cranmer, Eleanor E. & Papalexi, M. & tom Dieck, M. Claudia & Bamford, D., 2022. "Internet of Things: Aspiration, implementation and contribution," Journal of Business Research, Elsevier, vol. 139(C), pages 69-80.
    8. Bettiol, Marco & Capestro, Mauro & Di Maria, Eleonora & Ganau, Roberto, 2024. "Is this time different?: how Industry 4.0 affects firms' labor productivity," LSE Research Online Documents on Economics 124545, London School of Economics and Political Science, LSE Library.
    9. Delgosha, Mohammad Soltani & Hajiheydari, Nastaran & Talafidaryani, Mojtaba, 2022. "Discovering IoT implications in business and management: A computational thematic analysis," Technovation, Elsevier, vol. 118(C).
    10. Marco Bettiol & Mauro Capestro & Eleonora Di Maria & Roberto Ganau, 2024. "Is this time different? How Industry 4.0 affects firms’ labor productivity," Small Business Economics, Springer, vol. 62(4), pages 1449-1467, April.
    11. Marco Savastano & Carlo Amendola & Francesco Bellini & Fabrizio D’Ascenzo, 2019. "Contextual Impacts on Industrial Processes Brought by the Digital Transformation of Manufacturing: A Systematic Review," Sustainability, MDPI, vol. 11(3), pages 1-38, February.
    12. Jovanovic, Marin & Sjödin, David & Parida, Vinit, 2022. "Co-evolution of platform architecture, platform services, and platform governance: Expanding the platform value of industrial digital platforms," Technovation, Elsevier, vol. 118(C).
    13. Zahid Sarwar & Jingmei Gao & Adnan Khan, 2024. "Nexus of digital platforms, innovation capability, and strategic alignment to enhance innovation performance in the Asia Pacific region: a dynamic capability perspective," Asia Pacific Journal of Management, Springer, vol. 41(2), pages 867-901, June.
    14. Anna Adamik & Dorota Sikora-Fernandez, 2021. "Smart Organizations as a Source of Competitiveness and Sustainable Development in the Age of Industry 4.0: Integration of Micro and Macro Perspective," Energies, MDPI, vol. 14(6), pages 1-27, March.
    15. Müller, Julian Marius & Buliga, Oana & Voigt, Kai-Ingo, 2018. "Fortune favors the prepared: How SMEs approach business model innovations in Industry 4.0," Technological Forecasting and Social Change, Elsevier, vol. 132(C), pages 2-17.
    16. Snigdha Malhotra & Vernika Agarwal & P. K. Kapur, 2022. "Hierarchical framework for analysing the challenges of implementing industrial Internet of Things in manufacturing industries using ISM approach," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 13(5), pages 2356-2370, October.
    17. vom Brocke, Jan & Braccini, Alessio Maria & Sonnenberg, Christian & Spagnoletti, Paolo, 2014. "Living IT infrastructures — An ontology-based approach to aligning IT infrastructure capacity and business needs," International Journal of Accounting Information Systems, Elsevier, vol. 15(3), pages 246-274.
    18. Lerch, Christian M. & Horvat, Djerdj & Jasny, Johannes, 2024. "When manufacturers turn into digital platform providers: A transformation model to understand the platformization pathway," International Journal of Production Economics, Elsevier, vol. 273(C).
    19. Mosch, Philipp & Schweikl, Stefan & Obermaier, Robert, 2021. "Trapped in the supply chain? Digital servitization strategies and power relations in the case of an industrial technology supplier," International Journal of Production Economics, Elsevier, vol. 236(C).
    20. Mina Nasiri & Minna Saunila & Juhani Ukko & Tero Rantala & Hannu Rantanen, 2023. "Shaping Digital Innovation Via Digital-related Capabilities," Information Systems Frontiers, Springer, vol. 25(3), pages 1063-1080, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:140:y:2022:i:c:p:245-263. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.