Design Method Using Extended Business Model Canvas for IoT Platforms Considering Platform and Service Value

Abstract

This paper proposes a Platform and Service Business Model Canvas (PSBMC). The proposed method will help design an IoT platform business model that includes devices in the physical space (called edge devices). Manufacturing companies are selling and maintaining devices, e.g., home security devices and fire alarm devices, and seeking ways to utilize those devices effectively and create new value by adding IoT functions. Since data measured by those devices can be used to improve various services, these devices with IoT functions serve as IoT platforms for these services. It is necessary to identify customers and their requirements in order to improve the value of services. Fahmideh and Zowghi (2020) noted the lack of requirements analysis for IoT platform design. Also, previous studies proposed extensions to the business model canvas (Osterwalder and Pigneur 2010) for platform businesses. These studies focused on the value of the entire platform and did not separate the value of the services built on the platform from the value of the entire platform. Because the proposed canvas can describe service user requirements, service value, and platform value, it is possible to overcome the problem of the lack of requirements analysis in IoT platform business design. The IoT platform will be able to provide the basic function of edge devices and valuable services using devices' data.

Keywords: IoT Platform, Business Model Design, Platform Value, Service Value

DOI: 10.54941/ahfe1003125