The Impact of Internet of Things on Software Business Models

Context. Internet of Things (IoT) technology is significantly impacting software business. Several contributions were made in the literature regarding IoT. However, the importance of various business model elements for IoT and the impact of IoT on requirements engineering activities remains greatly unexplored. This paper focuses on the impact of IoT on software business models and requirements engineering. The objectives for this research include: (1) summarizing the current business models for IoT, (2) analyzing the impact of IoT on software business models (3) analyzing the impact of IoT on requirements engineering. We conducted a systematic snowballing literature review, followed by an industrial survey. We identified 21 peer reviewed papers which were analyzed in relation to their rigor and relevance and received 56 survey responses. The results of the literature review indicate 9 business model elements that IoT literature focus on. Morevoer, 4 business model aspects were described with respect to the business model structure, context and governance. The industrial survey results highlighted that value proposition, followed by customer segmentation and revenue streams were the most important business model elements for IoT. Moreover, the survey results suggest that requirement management, requirement prioritization and requirement modeling and analysis are highly impacted by IoT.

[1]  Roel Wieringa,et al.  Requirements engineering paper classification and evaluation criteria: a proposal and a discussion , 2005, Requirements Engineering.

[2]  Antonio Iera,et al.  The Internet of Things: A survey , 2010, Comput. Networks.

[3]  Dieter Uckelmann,et al.  Business Models for the Internet of Things , 2011, Architecting the Internet of Things.

[4]  Claes Wohlin,et al.  Experimentation in Software Engineering , 2012, Springer Berlin Heidelberg.

[5]  Pearl Brereton,et al.  Systematic literature reviews in software engineering - A systematic literature review , 2009, Inf. Softw. Technol..

[6]  Roderick J. A. Little,et al.  Statistical Analysis with Missing Data , 1988 .

[7]  O. Williamson.  Markets and hierarchies, analysis and antitrust implications : a study in the economics of internal organization , 1975 .

[8]  Richard A. Parker,et al.  Designing and Conducting Survey Research: A Comprehensive Guide , 1992 .

[9]  Marc Roelands,et al.  Constructing a multi-sided business model for a smart horizontal IoT service platform , 2013, 2013 17th International Conference on Intelligence in Next Generation Networks (ICIN).

[10]  Peng-fei Fan,et al.  Analysis of the business model innovation of the technology of internet of things in postal logistics , 2011, 2011 IEEE 18th International Conference on Industrial Engineering and Engineering Management.

[11]  O. Gassmann,et al.  Revolutionizing the Business Model , 2014 .

[12]  Eetu Luoma,et al.  Defining an Internet-of-Things Ecosystem , 2012, NEW2AN.

[13]  Alexander Osterwalder,et al.  The business model ontology a proposition in a design science approach , 2004 .

[14]  Jan Markendahl,et al.  Smart Energy: Competitive landscape and collaborative business models , 2015, 2015 18th International Conference on Intelligence in Next Generation Networks.

[15]  Tomas Sabol,et al.  Business Models for the Internet of Things Environment , 2014 .

[16]  Remco M. Dijkman,et al.  Business models for the Internet of Things , 2015, Int. J. Inf. Manag..

[17]  Adam Brandenburger,et al.  Value-based Business Strategy , 2005 .

[18]  Claes Wohlin,et al.  Guidelines for snowballing in systematic literature studies and a replication in software engineering , 2014, EASE '14.

[19]  Yunchuan Sun,et al.  A holistic approach to visualizing business models for the internet of things , 2012, Communications in Mobile Computing.

[20]  R. Amit,et al.  Value creation in E‐business , 2001 .

[21]  Sonja Meyer,et al.  Internet of Things-Aware Process Modeling: Integrating IoT Devices as Business Process Resources , 2013, CAiSE.

[22]  Wei Jia,et al.  Business model for drug supply chain based on the internet of things , 2010, 2010 2nd IEEE InternationalConference on Network Infrastructure and Digital Content.

[23]  Jurriën Wagenaar.  The impact of the Internet of Things on revenue in supply chains , 2012 .

[24]  Friedemann Mattern,et al.  From the Internet of Computers to the Internet of Things , 2010, From Active Data Management to Event-Based Systems and More.

[25]  Shari Lawrence Pfleeger,et al.  Principles of survey research: part 5: populations and samples , 2002, SOEN.

[26]  Xin Shi.  A Research on Internet-of-Things-Based Business Model of China Mobile , 2014 .

[27]  Mika Westerlund,et al.  Designing Business Models for the Internet of Things , 2014 .

[28]  Lida Xu,et al.  Internet of Things for Enterprise Systems of Modern Manufacturing , 2014, IEEE Transactions on Industrial Informatics.

[29]  Miao He,et al.  The Internet of Things as an Enabler to Supply Chain Innovation , 2010, 2010 IEEE 7th International Conference on E-Business Engineering.

[30]  Thomas Mejtoft,et al.  Internet of Things and Co-creation of Value , 2011, 2011 International Conference on Internet of Things and 4th International Conference on Cyber, Physical and Social Computing.

[31]  Deanna M. Kennedy,et al.  Strategies in Smart Service Systems Enabled Multi-sided Markets: Business Models for the Internet of Things , 2015, 2015 48th Hawaii International Conference on System Sciences.

[32]  Mika Westerlund,et al.  Towards IOT Ecosystems and Business Models , 2012, NEW2AN.

[33]  Tony Gorschek,et al.  The software value map — an exhaustive collection of value aspects for the development of software intensive products , 2013, J. Softw. Evol. Process..

[34]  D. Teece.  Business Models, Business Strategy and Innovation , 2010 .

[35]  R. Gulati.  Network location and learning: the influence of network resources and firm capabilities on alliance formation , 1999 .

[36]  Begoña García Zapirain,et al.  Mobile communication for intellectually challenged people: a proposed set of requirements for interface design on touch screen devices , 2012, Communications in Mobile Computing.

[37]  Tony Gorschek,et al.  A method for evaluating rigor and industrial relevance of technology evaluations , 2011, Empirical Software Engineering.

[38]  Christoph Schroth,et al.  The Internet of Things in an Enterprise Context , 2009, FIS.

[39]  Sven Apel,et al.  Measuring and modeling programming experience , 2013, Empirical Software Engineering.

[40]  Hubert C. Y. Chan.  Internet of Things Business Models , 2015 .

[41]  Daniela Cruzes,et al.  Research synthesis in software engineering: A tertiary study , 2011, Inf. Softw. Technol..

[42]  Yves Pigneur,et al.  Clarifying Business Models: Origins, Present, and Future of the Concept , 2005, Commun. Assoc. Inf. Syst..

[43]  R. Amit,et al.  The Business Model: Recent Developments and Future Research , 2011 .

[44]  Elgar Fleisch,et al.  Designing Business Models in the Era of Internet of Things - Towards a Reference Framework , 2014, DESRIST.