Industrial internet of things business models in the machine-to-machine context

Seppo Lemminen *, Mervi Rajahonka, Robert Wendelin, Mika Westerlund

*Corresponding author for this work

Research output: Contribution to journalArticleScientificpeer-review

77 Citations (Scopus)


This study analyzes Industrial Internet of Things (IIoT) business models in the machine-to-machine (M2M) context. Thereby, it develops a conceptual framework to categorize different types of business model innovation for companies operating in the M2M business space. Business model innovations tend to cross multiple industries and drive ecosystems in which smart objects facilitate business models and service applications that are incrementally or radically novel in terms of their modularity or architecture. Our framework identifies four distinct types of IIoT business models: (I) Company-specific business models, (II) Systemic business models, (III) Value designs, and (IV) Systemic value designs. Moreover, it sheds light on different abstraction levels of business model building blocks and exposes the characteristics and differences in the value potential between the four business models. Finally, we advance the idea of ‘value design’ referring to business models of multiple actors coupled together, ultimately resulting in complex networks and ecosystems of diverse things, processes, and companies.
Original languageEnglish
Peer-reviewed scientific journalIndustrial Marketing Management
Pages (from-to)298-311
Number of pages14
Publication statusPublished - 21.08.2019
MoE publication typeA1 Journal article - refereed


  • 512 Business and Management
  • Architecture
  • Business model
  • Internet of things
  • Machine-to-machine
  • Modularity
  • Value design

Areas of Strength and Areas of High Potential (AoS and AoHP)

  • AoS: Competition economics and service strategy - Service and customer-oriented management


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