IoT projects are highly complex, so it is crucial for initiatives to have a solid foundation right from the beginning. By jointly developing business models with the most relevant stakeholders, we can create one target picture for all contributing parties. We streamline all these efforts in order to maximize customer benefit. And since business models are exposed to uncertainty, risks have to be minimized. That’s why we make a point of validating assumptions early on against customer expectations and market acceptance.
We are observing a move from conventional, linear value streams to value creation within a network of stakeholders; this calls for new ways of visualizing value streams within the ecosystem. It also means that, when defining business models, the focus has to shift from the company level to the ecosystem level so that all stakeholders streamline their efforts to maximize benefits for target groups. We believe that the logic of business models must honor the importance of partners in the ecosystem; they need an explicit value proposition .
The Internet of Things combines the physical world with the virtual world. Bosch is already well-established in both, creating reliable products of superior quality that contain a significant amount of software. With its IoT platform, Bosch Software Innovations is perfectly suited to deliver the key benefit offered by the Internet of Things: connecting users, business partners, devices, machines, and enterprise systems with each other.
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We have collected best practice for developing IoT business models and have developed a methodology that helps to identify, define and evaluate business models that deliver lasting success. Within the overall context of IoT strategic planning, we support the following phases with different methods:
The IoT Business Model BuiIder illustrates recommended tools that facilitate the process of developing business models.
Together with experts from the University St. Gallen we have published a whitepaper explaining this developed methodology.
|Workshop||Goals||No. of participants||Duration|
|Ideation Workshop (optional)||Understand customer needs, technological and industry trends, generate business model innovation ideas, cluster ideas and select the most promising ones||15-20||1-2 days|
|Business Model Development 1||Capture situation, illustrate idea, define strategic embedding and value proposition||3-5||1-2 days|
|Business Model Development 2||Illustrate customer journey, define end-to-end solution, roughly define value added in the partner network||3-5||2 days|
|Business Model Development 3||Draft business case, define follow-up activities and roadmap||1-2||1 day|
|Identify key factors that have impact on business model, derive scenarios, assess early indicators, evaluate viability of the business model||3-5||2-3 day|
Phone +49 30 726 112 373
Bosch Software Innovations usually provides one workshop facilitator and one subject specialist per workshop. Sufficient time for follow-up activities should be factored in between the sessions.
Together with experts from the University St. Gallen we have published a whitepaper explaining our developed methodology.
The Internet of Things is becoming more and more important in many domains. Because in many cases it has the power to create completely new value propositions, new business models have to be designed for new IoT solutions. In the whitepaper presented here we define business models according to Osterwalder and Pigneur (2010) as “the rationale of how an organization creates, delivers and captures value.” While there is extensive literature available related to business model innovation (e.g., Gassmann et al., 2014) and IoT-induced business opportunities (e.g., Fleisch et al., 2014), the IoT Business Model Builder outlined in this whitepaper provides a hands-on, easy-to-use procedure model for developing business models for IoT offerings. It is based on our experience in designing business models for IoT applications in various domains.
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