IoT- and Big Data-Driven Data Analysis Services for Third Parties, Strategic Implications and Business Opportunities

IoT- and Big Data-Driven Data Analysis Services for Third Parties, Strategic Implications and Business Opportunities

Izabella V. Lokshina (SUNY Oneonta, Oneonta, USA), Cees J.M. Lanting (DATSA-Belgium, Consulting, Leuven, Belgium) and Barbara J. Durkin (SUNY Oneonta, Oneonta, USA)
DOI: 10.4018/IJSESD.2018070103

Abstract

This article describes ubiquitous sensing devices, enabled by wireless sensor network (WSN) technologies, now cut across every area of modern day living, affecting individuals and businesses and offering the ability to obtain and measure environmental indicators. Proliferation of these devices in a communicating-actuating network creates an Internet of Things (IoT). The IoT provides the tools to establish a major, global data-driven ecosystem that also enables Big Data techniques to be used. New business models may focus on the provision of services, i.e., the Internet of Services (IoS). These models assume the presence and development of the necessary IoT measurement and control instruments, communications infrastructure, and easy access to the data collected and information generated. Different business models may support opportunities to create revenue and value for various types of customers. This article contributes to the literature by considering, a first, knowledge-based management practices, business models, strategic implications and business opportunities for third-party data analysis services.
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1. Introduction

The much-discussed Internet of Things (IoT) provides a set of tools enabling a major, global data-driven ecosystem that encourages the development of devices (or Things) to collect data and produce unprecedented amounts of information about the parameters and items in the world around us. These devices encompass the gamut from pedometers to seismographs. When put in the hands of people and organizations, this information can make every area of life, including business, more data-driven.

Things are not really a new concept. People have been using sensors to collect scientific data for centuries. What is different now is the interconnection of all these devices, producing ever more granular data sets. Further, the data is becoming more and more accessible, potentially to everyone. To put that data to work, people need to make sense of it. When massive amounts of data become accessible and understandable, the implications are enormous for civic life, personal health and business.

Until now, much attention and effort have gone in the development of business models for the provision of services in this data-driven ecosystem in the context of the IoT, sometimes referred to as the Internet of Services (IoS). These business models assume the existence and development of the necessary IoT measurement and control instruments, communications infrastructure, and easy access to the data collected and information generated by any party. However, not every business model may support opportunities that generate revenue or value, nor may they be suitable for different types of customers. Therefore, other business models should also be considered (Lokshina et al., 2017a).

A discussion of the infrastructure is outside the scope of this paper. The paper assumes that a significant time will be needed for deployment. Regulatory clarity and appropriate permissions in addition to possible privacy and national security issues must be addressed.

This paper makes several contributions to the literature. First, the paper considers knowledge-based management practices and business models, strategic implications and business opportunities for third-party data analysis services. It complements other research about the positive effect of knowledge management on companies’ innovative performance. Second, the paper discusses access to information generated by third parties in a new context of analysis, i.e., as a prerequisite to data analysis services and in relation to Big Data techniques and potential opportunities. Third, the paper evaluates strategic implications for American and European small and medium enterprises (SMEs) that use IoT in their data-driven ecosystems. It complements prior research about the positive effects of information and communications technology (ICT) tools and competencies on business performance.

Finally, this paper also has some social implications since governments are interested in using the latest technologies to promote the best social climate for their citizens. The paper assumes that an obvious consequence of using the latest technologies will be a broader scope of deliberative democracy. However, the legal framework of the latest technologies is still considered rather vague or absent to a certain extent. Such issues as standardization, service design architecture and models, as well as data privacy and security create management and governance problems. These issues have not been solved completely by the current service architectures. The latest technologies can also become subject to power politics subject to the risks of cyberwar, cyber terrorism and cybercriminality.

The current research has several limitations. First, the study of a single context of analysis could reduce and limit the generalizability of results. There is, therefore, a need for additional research to determine whether knowledge management and ICT capabilities play the same role in other high-tech contexts. Second, the research is limited by the choice of companies involved. Further research could document additional quantitative and qualitative examples where SMEs have developed strategic opportunities by providing technical and consulting services to other businesses.

Awards

  • IGI Global's 11th Annual Excellence in Research Journal Awards
    IGI Global's 11th Annual Excellence in Research Journal AwardsHonoring outstanding scholarship and innovative research within IGI Global's prestigious journal collection, the 11th Annual Excellence in Research Journal Awards brings attention to the scholars behind the best work from the 2018 copyright year.

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