Business model innovation for IoT service

This paper presents the benefits and challenges that companies can get by using the Internet of Things (IoT) technology. Researchers discovered business problems and designed and implemented service model to solve problems through action research. Action research methodology has five processes (diagnosing, action planning, action taking, evaluating, and specifying learning). In diagnosing stage and action planning, business problem and solution are derived (IoT-based six service models). In action taking, system is constructed on the real world space with IoT devices. In evaluation and specifying learning, the results of the study are analyzed. Especially, the four key elements of successful business model innovation (novelty, lock-in, complementarities, efficiency) are explained. In addition, we analyzed the business model and presented the benefits that stakeholders can gain as a result of business model innovation. The study contributes by providing knowledge to researchers and practitioners to study application of Internet of Things (IoT).