- In the context of the increasing digitalization, the Internet of Things (IoT) is seen as a technological driver through which completely new business models can emerge in the interaction of different players. Identified key players include traditional industrial companies, municipalities and telecommunications companies. The latter, by providing connectivity, ensure that small devices with tiny batteries can be connected almost anywhere and directly to the Internet. There are already many IoT use cases on the market that provide simplification for end users, such as Philips Hue Tap. In addition to business models based on connectivity, there is great potential for information-driven business models that can support or enhance existing business models. One example is the IoT use case Park and Joy, which uses sensors to connect parking spaces and inform drivers about available parking spaces in real time. Information-driven business models can be based on data generated in IoT use cases. For example, a telecommunications company can add value by deriving more decision-relevant information – called insights – from data that is used to increase decision agility. In addition, insights can be monetized. The monetization of insights can only be sustainable, if careful attention is taken and frameworks are considered. In this chapter, the concept of information-driven business models is explained and illustrated with the concrete use case Park and Joy. In addition, the benefits, risks and framework conditions are discussed.
