One size does not fit all. Business models heterogeneity among Internet of Things architecture layers

The new paradigm known as the Internet of Things (IoT) is expected to have a significant impact on business during the next years, as it leads to the connection of physical objects and the interaction between the digital and physical worlds. While prior literature addressing the business implications arising from this paradigm has largely considered IoT as an integrated technology, in this study we examine different components of IoT and assess whether firms concerned with the development of IoT solutions have adopted original business models to exploit the opportunities offered by the specific IoT architecture layer they operate in. In turn, based on primary survey data collected on a sample of IoT Italy association's members, we explore different dimensions of the business model and offer a reinterpretation of the business model Canvas framework adapted to the IoT environment. We show that the specificities of each IoT layer require firms to adopt ad-hoc business models and focus on different dimensions of the business model Canvas. We believe our research provides some important contributions for both academics and practitioners. For the latter, we provide a tool useful for making decisions on how to design the business model for IoT applications.