Economic Analysis of a Multi-Sided Platform for Sensor-Based Services in the Internet of Things

[EN] A business model for sensor-based services is proposed where a platform creates a multi-sided market. The business model comprises a platform that serves as an intermediary between human users, app developers, and sensor networks, so that the users use the apps and the apps process the data supplied by the sensor networks. The platform, acting as a monopolist, posts a fee for each of the three sides so as to maximize its profit. This business model intends to mimic the market-creating innovation that main mobile apps platforms have generated in the smartphone sector. We conduct an analysis of the profit maximization problem faced by the platform, show that optimum prices exist for any parameter value, and show that these prices always induce an equilibrium in the number of agents from each side that join the platform. We show that the relative strength of the value that advertisers attach to the users determines the platform price structure. Depending on the value of this relative strength, two alternative subsidizing strategies are feasible: to subsidize either the users¿ subscription or the developers¿ registration. Finally, all agents benefit from an increase in the population at any of the three sides. This result provides a rationale for incentivizing not only the user participation, but also the entry of developer undertakings and the deployment of wireless sensor network infrastructure.This work has been supported by the Spanish Ministry of Economy and Competitiveness through Project TIN2013-47272-C2-1-R (co-supported by the European Social Fund) and by Institute ITACA-UPVthrough "Convocatorias Ayudas 2019-5"Guijarro, L.; Vidal Catalá, JR.; Pla, V.; Naldi, M. (2019). Economic Analysis of a Multi-Sided Platform for Sensor-Based Services in the Internet of Things. Sensors. 19(2):1-23. https://doi.org/10.3390/s19020373S12319

The Emerging Internet of Things Marketplace From an Industrial Perspective: A Survey

The Internet of Things (IoT) is a dynamic global information network consisting of internet-connected objects, such as Radio-frequency identification (RFIDs), sensors, actuators, as well as other instruments and smart appliances that are becoming an integral component of the future internet. Over the last decade, we have seen a large number of the IoT solutions developed by start-ups, small and medium enterprises, large corporations, academic research institutes (such as universities), and private and public research organisations making their way into the market. In this paper, we survey over one hundred IoT smart solutions in the marketplace and examine them closely in order to identify the technologies used, functionalities, and applications. More importantly, we identify the trends, opportunities and open challenges in the industry-based the IoT solutions. Based on the application domain, we classify and discuss these solutions under five different categories: smart wearable, smart home, smart, city, smart environment, and smart enterprise. This survey is intended to serve as a guideline and conceptual framework for future research in the IoT and to motivate and inspire further developments. It also provides a systematic exploration of existing research and suggests a number of potentially significant research directions.Comment: IEEE Transactions on Emerging Topics in Computing 201

User Participation in Value Creation

This article examines HM Treasury’s proposal to account for the active participation of users in value creation in certain digital platforms. The first key question is whether there is any reason to believe, as HM Treasury suggests, that users only meaningfully or actively contribute to value creation in the context of certain digital platforms. The article accordingly explores the factors HM Treasury sets out for the attribution of income to active user participation, including features such as network effects, multisided business models, and a lack of physical presence in the jurisdiction of the user. It concludes that if a user participation concept were adopted into international tax norms, it is unlikely to be limited to digital businesses or to the business models particularly highlighted in the proposal issued by HM Treasury. The analysis proceeds by considering the factors set out by HM Treasury for the attribution of income to active user participation in the context of pharmaceuticals and biologics, the financial sector, and the “internet of things”. For example, the article concludes that under HM Treasury’s user participation theory, returns from certain London-based financial intermediation businesses would need to be reallocated to other jurisdictions. Moreover, as the internet of things develops, one would expect the range of business affected by the active user participation concept to constantly expand

A gap analysis of Internet-of-Things platforms

We are experiencing an abundance of Internet-of-Things (IoT) middleware solutions that provide connectivity for sensors and actuators to the Internet. To gain a widespread adoption, these middleware solutions, referred to as platforms, have to meet the expectations of different players in the IoT ecosystem, including device providers, application developers, and end-users, among others. In this article, we evaluate a representative sample of these platforms, both proprietary and open-source, on the basis of their ability to meet the expectations of different IoT users. The evaluation is thus more focused on how ready and usable these platforms are for IoT ecosystem players, rather than on the peculiarities of the underlying technological layers. The evaluation is carried out as a gap analysis of the current IoT landscape with respect to (i) the support for heterogeneous sensing and actuating technologies, (ii) the data ownership and its implications for security and privacy, (iii) data processing and data sharing capabilities, (iv) the support offered to application developers, (v) the completeness of an IoT ecosystem, and (vi) the availability of dedicated IoT marketplaces. The gap analysis aims to highlight the deficiencies of today's solutions to improve their integration to tomorrow's ecosystems. In order to strengthen the finding of our analysis, we conducted a survey among the partners of the Finnish IoT program, counting over 350 experts, to evaluate the most critical issues for the development of future IoT platforms. Based on the results of our analysis and our survey, we conclude this article with a list of recommendations for extending these IoT platforms in order to fill in the gaps.Comment: 15 pages, 4 figures, 3 tables, Accepted for publication in Computer Communications, special issue on the Internet of Things: Research challenges and solution

Digital Transformation Through Internet of Things Services

Internet of Things (IoT) have been disrupting industries through shifting novel services, and business models. Organizations should also redesign their business service models to navigate this disruption. A holistic understanding of digital transformation through IoT requires the cooperation of multiple disciplines ranging from engineering to economics. This paper utilizes a conceptual model to develop an analytical framework to investigate a number of pricing strategies enabled by different business models. Our findings demonstrate that the Internet of Things phenomenon has the potential to disrupt the way we do business by connecting markets and enabling new business models

Digital Transformation Through Internet of Things Services

Internet of Things (IoT) have been disrupting industries through shifting novel services, and business models. Organizations should also redesign their business service models to navigate this disruption. A holistic understanding of digital transformation through IoT requires the cooperation of multiple disciplines ranging from engineering to economics. This paper utilizes a conceptual model to develop an analytical framework to investigate a number of pricing strategies enabled by different business models. Our findings demonstrate that the Internet of Things phenomenon has the potential to disrupt the way we do business by connecting markets and enabling new business models

Analysis of the IoT platforms business models

In the last decade the world of manufacturing firms is completely changed thanks to the use of new technologies. Internet of Things (IoT) is one of these technologies that not only has the potential to impact how we live, but also how the businesses are being ran. Innovative companies are adopting IoT strategies and technologies to reengineer their products and services and redefine their relationships with customers, employees and partners. The IoT market is exploding at a significant pace as consumers, businesses, and governments are recognizing the benefits of connecting devices to the Internet. The purpose of this thesis is to explore in depth the different business model utilized by different companies, with no distinction of specific industry. Moreover, this thesis aims to study the IoT platforms business models and to understand how these platforms change the market competition by leveraging the IoT technologies. In order to reach this aim a structured literature review will be performed. Then, analysing different companies by using the business model canvas approach, three business scenarios will be identified and defined, as follows: servitisation, lean and world manufacturing and, digital platforms for manufacturing. Finally, it will be applied a mathematical model in order to discuss whether and how an IoT investment can give advantage to a manufacturing firm