Business Model Design and Architecture for the Internet of Everything
- in lowering transaction and coordination costs,
- in making commercial transactions of complex products and
- that facilitates the market exchange by alleviating the effects of the growing power of mega-platforms.
2. Motivation and Background
2.1. Smart Cities
2.2. e-Business Modeling
- customer value proposition,
- value generation architecture and
- revenue model.
2.3. Use Case Description
3. Overall Objectives
3.1. Business Goals
4. Related Work
4.1. Electronic Marketplaces and Related Initiatives
4.2. Smart City Architectures
5. Architecture of the Distributed Market Spaces
5.1. High-Level Overview
5.1.1. Interaction with a Single Market Space Instance
5.1.2. Distributed Transaction in the Distributed Market Space
5.1.3. Discovery of DMS Instances
5.2.1. Functional View of the DMS
- to transform a user’s intention into a complex product request,
- to distribute these requests to multiple market spaces,
- to receive (partial) complex product offers,
- to re-combine them into multiple complete complex product proposals,
- to rank them according to the buyer’s context and requirements and
- to coordinate the distributed buying transaction.
- to register with the offered products/services,
- to receive decomposed product requests and
- to provide offers.
5.2.2. Information View of the DMS
5.2.3. Demonstrator Implementation
6. Conclusion and Future Work
Conflicts of Interest
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|Commercial transactions of complex products||Enabling transactions of complex products that fulfill a user-defined context is seen as a core value proposition of a context-centric e-business scenario. For buyers, it means a reduction of transaction costs, less effort in making informed buying decisions, and for providers, gaining higher visibility of their offers related to the user-defined context.|
|Decentralization and scalability||The context-centric e-business scenario should be decentralized in order to alleviate the effects of the growing power of mega-platforms and increase the flexibility of integration for a wider range of different product/service domains.|
|Simplicity of use, integration and management||Existing technologies have to be utilized as a way to obviate the aforementioned adverse selection effects. Therefore, a higher level of automatization has to be reached by providing tools and services for modeling contextual information. For example, these can be well-defined, context-aware service interfaces, ranking possibilities of proposals on the buyer side, as well as dynamic service composition and analytics possibilities on the provider side.|
|Enabling trade in any business domain||Since, to our understanding, complex products can encompass any combination of products (i.e., goods) and/or services, the context-centric business environment has to allow trading of any kind of tradable goods. According to , these can be categorized as physical goods (i.e., tangible goods that are exchanged on a per piece-basis), digital goods (i.e., intangible goods that are exchanged electronically), services (i.e., activities that one peer performs for the other), as well as financial goods (i.e., amounts of money that are transferred between peers). That implies that the underlying value architecture of a context-centric e-business scenario has to be open for any business domain and has to allow cross-domain transactions.|
|Integration of peer economy principles||In order to support the concept of the peer economy (i.e., peer-to-peer or point-to-point economy ), an e-business scenario has to consider the three market design issues, search, pricing and trust, among trading peers . Therefore, a context-centric e-business scenario has to be designed for an effective matching of sellers and buyers while keeping transaction costs low and for an integration of different pricing models. This is considered important particularly for small and medium-sized sellers (SMEs): on the one hand, it allows SMEs to compete with traditional providers of products/services, and on the other, to gain better utilization of price flexibility. Trust and security are also seen as very important, as they often imply the accuracy of providing information and the reliability of the transaction. One important aspect, given the nature of the provided user-context information, is not only to ensure that data are only used for the purpose the user has agreed to, but also to ensure the privacy of context information and the avoidance of unwanted profiling of individuals.|
|,||Native support of complex products||Capability for processing an arbitrary combination of individual products and/or services that need to fulfill particular conditions determined by a user’s context.|
|,||Integration of distributed context information||Capability of considering the user’s context, which can encompass much more information than those related to the decision criteria and include the wider range of relevant information.|
|,||Distributed transactions||Possibility of trading products/services from different suppliers, which are available on one or more marketplaces, in a single enclosing transaction from the user’s point of view.|
|Cross-domain transactions||Possibility of trading products/services from different business-domains in a single enclosing transaction.|
|, ,||Advanced matching||Capability of matching a large number of fragmented, heterogeneous buyers and sellers effectively, keeping transaction costs low.|
|, ,||Advanced ranking||Supporting buyers in making informed decisions by applying a ranking mechanism that considers context-related constraints to create the “best-fit” list of offers.|
|Sophisticated reputation and feedback mechanism||Supporting buyers in making informed decisions by considering sophisticated information about potential trading partners.|
|Flexible price models||Supporting suppliers gaining better utilization or price flexibility.|
© 2016 by the authors; licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons by Attribution (CC-BY) license (http://creativecommons.org/licenses/by/4.0/).
Pfisterer, D.; Radonjic-Simic, M.; Reichwald, J. Business Model Design and Architecture for the Internet of Everything. J. Sens. Actuator Netw. 2016, 5, 7. https://doi.org/10.3390/jsan5020007
Pfisterer D, Radonjic-Simic M, Reichwald J. Business Model Design and Architecture for the Internet of Everything. Journal of Sensor and Actuator Networks. 2016; 5(2):7. https://doi.org/10.3390/jsan5020007Chicago/Turabian Style
Pfisterer, Dennis, Mirjana Radonjic-Simic, and Julian Reichwald. 2016. "Business Model Design and Architecture for the Internet of Everything" Journal of Sensor and Actuator Networks 5, no. 2: 7. https://doi.org/10.3390/jsan5020007