Study On Composition And Business Model Innovation Strategy Of The Internet Of Things Industry

Since 1990s, business model concept has been popular in academic and practice field. Different scholars have different opinions and focus. Simply, business model means the way to make money of corporations. Specifically, business models include two main parts, value creation and value capture. Value creation includes customer value position and customer work scene design. Value capture includes profit model, operation system and collaboration network. This paper starts from the theory basis, discovering the profit zone in the internet of things industry. Then, business model elements will be designed and new business model will be obtained.There are three conclusions. Firstly, business model design path is illustrated as below. Customer value firstly will be positioned by analyzing industry development. Then design customer work scene. In order to achieve this, internal operating system, profit model and collaboration network will be planned. Secondly, this paper finds two profit zones. One is to provide unified app software to manage different smart hardware as software providers. The other one is to provide a smart management platform to control all smart hardwires. Thirdly, this paper designs the five business model elements of the two new business models which are app software model and smart platform model. The two new business models can play a very positive role in guiding practice.