Toward an Ecosystemic Business Model in the context of Industrial Internet

This conceptual paper discusses the emerging theme of Industrial Internet and business models within the context of digital business. Industrial Internet under the Internet of Things (IoT) paradigm connects the digital world with the physical one. Industrial Internet can be understood as a layered business ecosystem and hence, the business models within the context should be viewed through the ecosystemic lens as well. Companies are challenged in creating and capturing value beyond the physical product due to the complex nature of the IoT domain. Technology is there for many, but business application remains an issue. This stresses the crucial role of business models. However, majority of current business model conceptualizations do not consider the interconnected nature of firms that evolve in the same innovation ecosystem. The role of the external environment in value creation and capture processes has been neglected. This research addresses this gap in literature by presenting a new approach to business model thinking, the “oblique business model” that within co-evolving IoT business ecosystems builds on the value sharing perspective. We thus view the oblique business model as an ecosystemic business model.

Marika Iivari, Petri Ahokangas, Marjaana Komi, Maarit Tihinen, Kristiina Valtanen (University of Oulu): Toward an Ecosystemic Business Model in the context of Industrial Internet

Presented at the 23rd Nordic Academy of Management Conference, Copenhagen, 12th-14th August, 2015