Strategies in Smart Service Systems Enabled Multi-Sided Markets: Business Models for the Internet of Things

Internet of Things has the potential to disrupt industries through changing products, services, and business models just as the Internet did in the '90s. Machine-to-machine communication is at the core of Internet of Things. Machines that we interact with in everyday life will start interacting with each other, collect data, and even use advances in data technologies to make decisions for us. Organizations, in order to achieve the highest profit, should also redesign their business service models conscientiously around externalities across markets that link through platforms and be specific about which markets to serve. In this research, we aim to build business ownership strategies to further two-sided markets and platforms literature. Herein, we focus on a number of business service models that link four sides of a market, and compare the advantages and disadvantages of network externalities generated by Internet of Things in each model.