The emergence of Internet of Things (IoT) technologies offers promising value potentials for industrial manufacturers based on the combination of smart products and data-driven services. At the same time, many incumbent firms experience a threat to their traditional value proposition and are challenged to innovate and reconfigure their existing business models. However, many of these traditional manufacturers lack or are unaware of the required capabilities for successfully reinventing their business model using IoT technologies. We therefore adopt the lens of dynamic and operational capabilities and conduct an empirical analysis of organizational capabilities required for successful IoT-enabled business model innovation (BMI). Through an exploratory, qualitative study based on interviews with decision makers in industrial manufacturing companies and experts in practice-oriented research institutions, we identify eleven distinct dynamic and operational capabilities. Our findings provide useful insights for research and practice and advance the understanding of enablers in IoT-enabled BMI
