Business Models for the Internet of Things

The Internet of Things is the connection – via the internet – of objects from the physical world that are equipped with sensors, actuators and communication technology. This technology is looked at by a large variety of domains, such as manufacturing, healthcare and energy, to facilitate the development of new applications and the improvement of existing applications. To also enable the commercial exploitation of these applications, new types of business models must be developed. Frameworks exist to facilitate the development of businessmodels. These frameworks define the building blocks that a businessmodel address. This paper presents a business model framework specifically for Internet of Things applications. Through a literature survey, interviews and a survey among practitioners, it identifies the building blocks that are relevant in an Internet of Things business model, types of options that can be focused on within these building blocks and the relative importance of these building blocks and types. The framework can be used by developers as a starting point for creating business models for Internet of Things applications. © 2015 Elsevier Ltd. All rights reserved.