Connected and smart products give rise to smart services that leverage their advanced capabilities and promise profitable business models. However, many companies in the Internet of Things domain are still struggling to incorporate smart services into their portfolios, and more research is needed to facilitate service innovation and adoption. We, therefore, identify common characteristics of the value propositions of B2B smart services and summarize them in a taxonomy. The taxonomy development follows established methods and is based on a systematic literature review and the study of 100 empirical objects. To confirm the validity of our findings, we conduct two ex-post evaluations. Our research provides descriptive knowledge about B2B smart services that can serve as a foundation for further research on smart service innovation
