The Valuation Of Business Model Of Internet Of Things And Typical Cases Analysis

The Internet of things(IOT), which is known as the third wave of world's information technology after the emergence of computer and Internet, explodes strong vitality with its wide industrial coverage and intellectualized service notion, and gives a shot in getting rid of the shadow of financial crisis and promoting economic recovery. Although the governments and corporation around the world have continually increased investment, the market performance of IOT is far from satisfaction, and a huge stock of technology, products and applied service still have not accomplished industrialization, standardization and marketilization in true sense.The reason to this lies in the lack of mature and perfect business models, and most of IOT enterprises focus too much on traditional operating profit, ignoring the exploration of business models which are suitable for their value proposition, product features and market positioning.This paper, starting form the theory and method of valuation for business model,analyzes and evaluates business models of Chinese IOT enterprises objectively and comprehensively by using some research methods such as literature, questionnaire survey, entropy coefficient fuzzy comprehensive evaluation and case study.Firstly, the paper reviews relevant domestic and foreign literature from the definition, element and valuation method of business model to supply theoretical support of the following chapters. Secondly, according to the conceptual system of business model, the frame structure of business model of IOT is established from both external development environment and internal elements. Specifically, the analysis of external environment of IOT is divided into four parts, including individual politics and regulations, economy, society and technology. On the hand, the analysis of internal elements includes individual type, value flow, information flow, fund flow,profit model and income assignment pattern. Then, on the basis of existing referenced literature, the dissertation makes a detailed analysis of running processes and features of five typical business models of the United States, Europe Union, Japan and Korea,which are superior in information technology. And summarize that the future of business model of IOT will develop to multiple type from single type. Thirdly,following the principal of qualitative and quantitative analysis,the paper chooses five dimensionalities as first level evaluation indexes, including value flow, informationvalue, fund flow, profitability and growth ability. And the first class indexes are further subdivided into the 21 secondary class indexes. Then, an integrated valuation index system of business model of IOT has been constructed. After a comparative analysis on different kinds of weights calculation methods and comprehensive evaluation methods, this paper has chosen the method of entropy weight coefficient to determine the weight of each index and the method of fuzzy comprehensive evaluation to build the model of value evaluation of business model of IOT. Finally,three representative IOT enterprises, which named Invengo, Enjoyor and JCST, has been chosen to make single factor evaluation and integrated evaluation by using the actual researching data and the annual reports of listed companies. According to the evaluation results, this paper has drawn the following conclusions: firstly, the three case enterprises have different performances on single factor evaluation. Although,the score of information flow of Invengo is low than that of Enjoyor and JCST,the rest of factors' scores are superior to them. And, scores of all the factors of both Enjoyor and JCST are at the same level, except the score of fund flow. Secondly, from the results of comprehensive evaluation, business models of the three case enterprises are all in good general standard. And the score of Invengo is 3.624, which occupies first place. The score of Enjoyor is 3.363, which comes the second. The score of JCST is 3.355, which is the last.Based on the conclusions of evaluation, combining the operating characteristics and performance of each business models, this paper sums up the three typical problems of current business models of IOT. The first one is that IOT enterprises lack deep understanding of business model. The second one is that profession barrier impedes the progress of diversification and the development of multi-channels. And the third one is that IOT enterprises focus too much on distribution of commercial interests, and lack of communication and cooperation.