Smart-building management system: An Internet-of-Things (IoT) application business model in Vietnam

The accelerating significance and prevalence of IoT (Internet-of-Things) have been recently appreciated by academicians and policy makers. The emergence of ubiquitous sensors, smart devices and broad-band Internet capacity has enabled the integration of networks for synchronous data collecting and processing, which ultimately facilitates prompt decision-making and physical responses to changes in a real-time manner. The virtual interconnectedness of humans and objects exerts managerial efficiency and emotional comfort for network operators, end users and other third party actors, which results in the embrace of IoT-based platforms in production and consumption. The skyrocketing urbanization has chronically caused dense concentration of population in buildings, which yields market prospects for smart-building management system solutions based on IoT applications. Nevertheless, IoT application business models have remained nascent in emerging and transitional economies. In this paper, the authors exploit the Business Model Canvas to assess an IoT start-up in Vietnam and to establish an output Business Model Canvas for entrepreneurs. Findings indicate high competitive advantages of local enterprises and propose vertical integration in joint ventures as the entry strategy for foreign investors.