Skip to main content

IoT Business Model Innovation and the Stage-Gate Process

An Exploratory Analysis

  • Chapter
  • First Online:
Business Model Innovation in the Era of the Internet of Things

Part of the book series: Progress in IS ((PROIS))

  • 2631 Accesses

Abstract

Large manufacturing companies will in future be continuously challenged to develop and implement new IoT-related business models. Existing research offers interesting insights on high-level stages of business model innovation (BMI) processes in general. However, only little is known about the presence of main gates in BMI processes and even less about the underlying decision criteria applied at these gates. To shed more light on this research field, 27 expert interviews with employees from eight companies across the IoT ecosystem were conducted. The expert interviews reveal that, despite the increasing popularity of (radically) new innovation approaches, two main decision points can be identified across BMI processes. These findings are a first explorative step towards a better understanding of IoT adoption and provide a starting point for interesting future research avenues.

Previously published in: Tesch, Jan. F., Brillinger, Anne-Sophie and Bilgeri, Dominik (2017): “Internet of Things Business Model Innovation and the Stage-Gate Process: An Explanatory Analysis”, International Journal of Innovation Management (IJIM), Vol. 21, No. 5, p. 1740002, https://doi.org/10.1142/S1363919617400023 © World Scientific Publishing Europe Ltd.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 129.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Hardcover Book
USD 169.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Notes

  1. 1.

    Further details may be obtained from the authors upon request.

References

  • Atzori, L., Iera, A., & Morabito, G. (2010). The internet of things: A survey. Computer Networks, 54(15), 2787–2805.

    Article  Google Scholar 

  • Baden-Fuller, C., & Morgan, M. S. (2010). Business models as models. Long Range Planning, 43(2–3), 156–171.

    Article  Google Scholar 

  • Benbasat, I., Goldstein, D. K., & Mead, M. (1987). The case research strategy in studies of information systems. MIS Quarterly, 11(3), 369.

    Article  Google Scholar 

  • Blaikie, N. W. H. (1991). A critique of the use of triangulation in social research. Quality & Quantity, 25(2), 115–136.

    Article  Google Scholar 

  • Blank, S. (2013). Why the lean start-up changes everything. Harvard Business Review, 91(5), 63–72.

    Google Scholar 

  • Brown, S. L., & Eisenhardt, K. M. (1997). The art of continuous change: Linking complexity theory and time-paced evolution in relentlessly shifting organizations. Administrative Science Quarterly, 42(1), 1–34.

    Article  Google Scholar 

  • Casadesus-Masanell, R., & Zhu, F. (2013). Business model innovation and competitive imitation. The case of sponsor-based business models. Strategic Management Journal, 34(4), 464–482.

    Article  Google Scholar 

  • Cavalcante, S. A. (2014). Designing business model change. International Journal of Innovation Management, 18(02), 1–22.

    Article  Google Scholar 

  • Chesbrough, H. (2010). Business model innovation: opportunities and barriers. Long Range Planning, 43(2–3), 354–363.

    Article  Google Scholar 

  • Cooper, R. G. (2008). Perspective: The stage-gate® idea-to-launch process—update, what’s new, and NexGen systems. Journal of Product Innovation Management, 25(3), 213–232.

    Article  Google Scholar 

  • Cooper, R. G. (2014). What’s next?: After stage-gate. Research-Technology Management, 57(1), 20–31.

    Article  Google Scholar 

  • Cortimiglia, M. N., Ghezzi, A., & Frank, A. G. (2016). Business model innovation and strategy making nexus. Evidence from a cross-industry mixed-methods study. R&D Management, 46(3), 414–432.

    Article  Google Scholar 

  • Demil, B., & Lecocq, X. (2010). Business model evolution. in search of dynamic consistency. Long Range Planning, 43(2–3), 227–246.

    Article  Google Scholar 

  • Denzin, N. K., & Lincoln, Y. (2000). Handbook of qualitative research (pp. 413–427). Thousand Oaks: Sage Publications.

    Google Scholar 

  • Desyllas, P., & Sako, M. (2013). Profiting from business model innovation: Evidence from pay-as-you-drive auto insurance. Research Policy, 42(1), 101–116.

    Article  Google Scholar 

  • Eisenhardt, K. M. (1989). Building theories from case study research. Academy of Management Review, 14(4), 532–550.

    Article  Google Scholar 

  • Eisenhardt, K. M., & Graebner, M. E. (2007). Theory building from cases: Opportunities and challenges. Academy of Management Journal, 50(1), 25–32.

    Article  Google Scholar 

  • Fleisch, E., Weinberger, M., & Wortmann, F. (2014). Business models and the internet of things. available at: http://www.iot-lab.ch/wp-content/uploads/2014/11/EN_Bosch-Lab-White-Paper-GM-im-IOT-1_3.pdf.

  • Frankenberger, K., Weiblen, T., Csik, M., & Gassmann, O. (2013). The 4I-framework of business model innovation: A structured view on process phases and challenges. International Journal of Product Development, 18(3/4), 1–18.

    Article  Google Scholar 

  • Gephart, R. P. (2004). Qualitative research and the academy of management journal. Academy of Management Journal, 47(4), 454–462.

    Article  Google Scholar 

  • Günzel, F., & Holm, A. B. (2013). One size does not fit all—Understanding the front-end and back-end of business model innovation. International Journal of Innovation Management, 17(01), 1–34.

    Article  Google Scholar 

  • Harmancioglu, N., McNally, R. C., Calantone, R. J., & Durmusoglu, S. S. (2007). Your new product development (NPD) is only as good as your process: an exploratory analysis of new NPD process design and implementation. R&D Management, 37(5), 399–424.

    Article  Google Scholar 

  • Iansiti, M., & Lakhani, K. R. (2014). Digital ubiquity: How connections, sensors, and data are revolutionizing business (digest summary). Harvard Business Review, 92(11), 91–99.

    Google Scholar 

  • Koen, P. A., Bertels, H. M. J., & Elsum, I. R. (2011). The three faces of business model innovation. Challenges for established firm. Research technology management, 54(3), 52–59.

    Article  Google Scholar 

  • Koh, S. L., Gunasekaran, A., & Goodman, T. (2011). Drivers, barriers and critical success factors for ERPII implementation in supply chains: A critical analysis. The Journal of Strategic Information Systems, 20(4), 385–402.

    Article  Google Scholar 

  • Kuckartz, U. (2012). Qualitative Inhaltsanalyse. Methoden, Praxis, Computerunterstützung [Qualitative content analysis. Methods, practice, computer assistance]. Weinheim and Basel: Beltz Juventa.

    Google Scholar 

  • Landau, C., Karna, A., & Sailer, M. (2016). Business model adaptation for emerging markets. A case study of a German automobile manufacturer in India. R&D Management, 46(3), 480–503.

    Article  Google Scholar 

  • Langley, A. (1999). Strategies for theorizing from process data. The Academy of Management Review, 24(4), 691.

    Article  Google Scholar 

  • Laudien, S. M., & Daxböck, B. (2016). Business model innovation processes of average market players. A qualitative-empirical analysis. R&D Management, 47(3), 420–430.

    Google Scholar 

  • Leonard-Barton, D. (1990). A dual methodology for case studies: Synergistic use of a longitudinal single site with replicated multiple sites. Organization Science, 1(3), 248–266.

    Article  Google Scholar 

  • Leonard-Barton, D. (1992). Core capabilities and core rigidities: A paradox in managing new product development. Strategic Management Journal, 13(S1), 111–125.

    Article  Google Scholar 

  • Liedtka, J. (2015). Perspective: Linking design thinking with innovation outcomes through cognitive bias reduction. Journal of Product Innovation Management, 32(6), 925–938.

    Article  Google Scholar 

  • Magretta, J. (2002). Why business models matter. Harvard Business Review, 80(5), 86–92.

    Google Scholar 

  • Markides, C. (2006). Disruptive innovation. In need of better theory*. Journal of Product Innovation Management, 23(1), 19–25.

    Article  Google Scholar 

  • Mattern, F., & Floerkemeier, C. (2010). From the internet of computers to the internet of things. In D. Hutchison, T. Kanade, J. Kittler, J. M. Kleinberg, F. Mattern, J. C. Mitchell, et al. (Eds.), From active data management to event-based systems and more (Vol. 6462, pp. 242–259)., Lecture notes in computer science Berlin, Heidelberg: Springer.

    Chapter  Google Scholar 

  • Mattern, F., & Flörkemeier, C. (2010). Vom Internet der Computer zum Internet der Dinge. Informatik-Spektrum, 33(2), 107–121.

    Article  Google Scholar 

  • Miles, M. B., & Huberman, A. M. (2008). Qualitative data analysis: An expanded sourcebook. Thousand Oaks, CA: Sage.

    Google Scholar 

  • Porter, M. E., & Heppelmann, J. E. (2014). How smart, connected products are transforming competition. Harvard Business Review, 92(11), 11–64.

    Google Scholar 

  • Ries, E. (2011). The lean startup: How constant innovation creates radically successful businesses. London: Portfolio Penguin.

    Google Scholar 

  • Sarasvathy, S. D. (2001). Causation and effectuation: Toward a theoretical shift from economic inevitability to entrepreneurial contingency. Academy of Management Review, 26(2), 243–263.

    Article  Google Scholar 

  • Schneider, S., & Spieth, P. (2013). Business model innovation. Towards an integrated future research agenda. International Journal of Innovation Management, 17(01), 1–35.

    Article  Google Scholar 

  • Schnell, R., Hill, P. B., & Esser, E. (2014). “Methoden der empirischen Sozialforschung”.

    Google Scholar 

  • Teece, D. J. (2010). Business models, business strategy and innovation. Long Range Planning, 43(2–3), 172–194.

    Article  Google Scholar 

  • Vermesan, O., Friess, P., Guillemin, P., Sundmaeker, H., Eisenhauer, M., Moessner, K., et al. (2013). Internet of things strategic research and innovation agenda. In River Publishers series in communication (pp. 7–151).

    Google Scholar 

  • Westerlund, M., Leminen, S., & Rajahonka, M. (2014). Designing business models for the internet of things. Technology Innovation Management Review, 4(7), 5–14.

    Article  Google Scholar 

  • Wirtz, B. W., Schilke, O., & Ullrich, S. (2010). Strategic development of business models: Implications of the Web 2.0 for creating value on the internet. Long Range Planning, 43(2), 272–290.

    Article  Google Scholar 

  • Yin, R. K. (1981). The case study crisis: some answers. Administrative Science Quarterly, 26(1), 58.

    Article  Google Scholar 

  • Yin, R. K. (2014). Case study research: Design and methods [3rd printing] (5th ed.). Thousand Oaks, California, London: Sage publications.

    Google Scholar 

  • Zott, C., & Amit, R. (2010). Business Model design: An activity system perspective. Long Range Planning, 43(2–3), 216–226.

    Article  Google Scholar 

  • Zott, C., Amit, R., & Massa, L. (2011). The business model. Recent developments and future research. Journal of Management, 37(4), 1019–1042.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Jan F. Tesch .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2019 Springer Nature Switzerland AG

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Tesch, J.F., Brillinger, AS., Bilgeri, D. (2019). IoT Business Model Innovation and the Stage-Gate Process. In: Tesch, J. (eds) Business Model Innovation in the Era of the Internet of Things. Progress in IS. Springer, Cham. https://doi.org/10.1007/978-3-319-98723-1_3

Download citation

Publish with us

Policies and ethics