Wirtz 2018

You might also like

Download as pdf or txt
Download as pdf or txt
You are on page 1of 13

Government Information Quarterly xxx (xxxx) xxx–xxx

Contents lists available at ScienceDirect

Government Information Quarterly


journal homepage: www.elsevier.com/locate/govinf

An integrative public IoT framework for smart government



Bernd W. Wirtz , Jan C. Weyerer, Franziska T. Schichtel
German University of Administrative Sciences Speyer, Chair for Information and Communication Management, Freiherr-vom-Stein-Str. 2, 67346 Speyer, Germany

A R T I C LE I N FO A B S T R A C T

Keywords: The Internet of Things (IoT) has gained significant importance in science and management and holds great value
Internet of things creation potential for public services. A pressing issue in this regard is how governments and public organiza-
IoT tions can adapt their traditional structures and processes to the innovative field of the IoT to create public value.
Framework Previous research fails to provide a holistic explanation to this research question. Its technological background
Conceptual study
and predominant consideration in technology-based research areas has led to a one-sided understanding of the
Smart government
Business model
IoT concept that neglects its value-adding aspects. To fill in this research gap, this study presents an integrative
Value creation public IoT framework for smart government, consolidating insights from IoT literature and related fields of
research, complementing the so far predominant technology perspective of IoT with important business-related
or value-adding aspects. In doing so, it enhances our understanding of public management-specific key di-
mensions and aspects of the IoT, serving as a holistic guidance for future research as well as practical im-
plementation and application.

1. Introduction connected devices has increased tremendously over the past years,
raising expectations among organizations regarding its potential to
The Internet of Things (IoT) is a novel concept that has gained in- create value (Dijkman, Sprenkels, Peeters, & Janssen, 2015). In this
creasing importance among practitioners and researchers in recent connection, Pang et al. (2015, p. 87) highlight that “[t]he impact
years. Although a variety of definitions has been proposed within the caused by the IoT to human society will be as huge as that the internet
last decade, there is no uniform understanding of the IoT concept so far has caused in the past decades, so the IoT is recognised as the ‘next
(Madakam, Ramaswamy, & Tripathi, 2015). While some definitions generation of internet’”. Against this background, the IoT holds great
highlight the network character of the IoT, others emphasize the objects benefits for the private and the public sector, for instance, in terms of
connected within this network (Atzori, Iera, & Morabito, 2010). At their business process optimization and resource savings (e.g., Boos, Guenter,
core, most definitions refer to the Internet-based connection of a variety Grote, & Kinder, 2013; Qiu, Luo, Xu, Zhong, & Huang, 2015).
of factors in a network (e.g., Gubbi, Buyya, Marusic, & Palaniswami, The public sector and particularly the governmental setting appear
2013; McKinsey Global Institut, 2015; Miorandi, Sicari, de Pellegrini, & to be promising application areas of the IoT. The IoT plays a significant
Chlamtac, 2012; Xia, Yang, Wang, & Vintel, 2012). role in the context of what is often referred to as smart or intelligent
In line with this, Huang et al. (2012, p. 149) present a common government and is among the key trends that governments need to
definition of the IoT viewing it as “a ubiquitous network which com- follow in the near future (Mellouli, Luna-Reyes, & Zhang, 2014). Smart
bines various information sensing devices with the Internet”. While this government is regarded as “the highest modernization phase of the
definition certainly describes the essence of the IoT, it remains broad public organizations” (Jiménez et al., 2015, p. 8) and contains “ele-
and neglects the qualities and capabilities of the IoT that are crucial for ments of reflection, information-gathering and processing, and a re-
creating public value, which is particularly in the context of smart liance on ICT […] and relies on principles of openness, participation,
government a major objective of IoT. Against this background, we and improvement of public sector services” (Kennedy, 2016, p. 78).
understand the IoT as “[an] open and comprehensive network of in- Governments all over the world (e.g., in North America, Asia and
telligent objects that have the capacity to auto-organize, share in- Europe) regard the IoT as a source of growth and innovation, seeking to
formation, data and resources, reacting and acting in face of situations tap its full potential for effective and efficient performance of public
and changes in the environment” (Madakam et al., 2015, p. 165). tasks (Friess, 2013). Cenedese, Zanella, Vangelista, and Zorzi (2014),
Currently, the IoT is growing at a rapid pace and the number of for instance, suggest that the application of IoT in the public context is


Corresponding author.
E-mail addresses: ls-wirtz@uni-speyer.de (B.W. Wirtz), weyerer@uni-speyer.de (J.C. Weyerer), schichtel@uni-speyer.de (F.T. Schichtel).

https://doi.org/10.1016/j.giq.2018.07.001
Received 15 December 2017; Received in revised form 29 May 2018; Accepted 4 July 2018
0740-624X/ © 2018 Elsevier Inc. All rights reserved.

Please cite this article as: Wirtz, B.W., Government Information Quarterly (2018), https://doi.org/10.1016/j.giq.2018.07.001
B.W. Wirtz et al. Government Information Quarterly xxx (xxxx) xxx–xxx

intended to enhance the efficiency of use of public resources and in- research. For instance, it can be a useful conceptual foundation for
crease the effectiveness of public services. Thus, to put it in a nutshell, developing hypotheses in confirmatory empirical research approaches.
the primary objective of IoT is to create public value. To successfully Furthermore, it may be a useful point of reference for practitioners in
implement IoT in the context of smart government and deliver public designing and implementing specific IoT frameworks. Concerning its
value in this way requires to take account of various aspects, in parti- necessity and benefit, it is thus in the first place particularly relevant for
cular, developing new business and operation models, as well as es- scholars and practitioners, but also for citizens who ultimately may
tablishing information infrastructures and respective decision support benefit from achievements in science and practice.
systems (Qiu et al., 2015). In summary, the integrative public IoT framework contributes to
However, as IoT is still in its infancy, research is scarce in this field academics and public management by providing systematized theore-
of study (Suresh, Daniel, Parthasarathy, & Aswathy, 2014) and “the IoT tical insights about IoT, which may not only serve researchers as a
itself lacks theory, technology architecture and standards that integrate useful starting point in conducting conceptual and empirical IoT stu-
the virtual world and the real physical world in a unified framework” dies, but also support practitioners in designing and implementing IoT-
(Chen, Xu, Liu, Hu, & Wang, 2014, p. 356). Despite its great potential based services and solutions.
benefits for government, public administration and citizens, there are The remainder of this article is structured as follows: In the fol-
especially few research approaches addressing IoT in the context of lowing section, we describe the procedure of literature analysis and
smart government. Furthermore, the vast majority of studies that ad- evaluate the different IoT frameworks identified, deducing common
dress the IoT focus on its technological aspects and widely neglect components across these frameworks. Based on these findings and
business and public value-related aspects. In particular, its business further insights of business model research, we then develop an in-
value still remains largely unclear and a definition and design of the tegrative public IoT framework. Finally, we discuss our major findings
underlying business models is currently still missing, although various and present implications for research and practice.
studies highlight the great demand and necessity for developing and
renewing business models (Chan, 2015; Dijkman et al., 2015; Qiu et al., 2. Identifying and analyzing existing IoT frameworks in the
2015; Silva & Maló, 2014). literature
Given the multifaceted character and complexity of IoT, as well as
the specificity of its implementation, traditional e-service business This study seeks to contribute to academic and practical knowledge
models do not appear to be suitable for describing and successfully by developing an integrative public IoT framework based on previous
implementing IoT-based public services and solutions. Instead, a IoT frameworks and business model research. Before analyzing the
common understanding of the IoT, as well as its successful im- existing IoT frameworks in literature, we first explain our procedure of
plementation and public value generation requires a holistic perspec- identifying relevant approaches and show how it corresponds to the
tive that takes account of all relevant aspects, combining them in a core topic and objective of this study. Due to the great novelty of IoT
comprehensive framework. research particularly with regard to the public sector and government,
To the best of our knowledge, there are so far no integrative IoT there are very few IoT frameworks specifically tailored to the public
frameworks designed for the smart government context. To fill in this sector or government (Ang, Seng, Zungeru, & Ijemaru, 2017; Mitchell,
research gap, this article seeks to develop a conceptual and integrative Villa, Stewart-Weeks, & Lange, 2013). This small research base is most
IoT framework for smart government based on common findings of relevant to the core topic of this study and thus represents the most
available IoT frameworks in the literature. important part of our analysis and in developing an integrative public
But what is an IoT framework and why do we exactly need it? Our IoT framework.
understanding of an IoT framework is based on general definitions of a However, at the same time this small research base is not sufficient
conceptual framework, which can be applied to any context of in- to develop a robust and comprehensive, integrative public IoT frame-
vestigation, in this case IoT. According to this, a conceptual framework work that covers all relevant dimensions, particularly including tech-
refers to a compilation of broadly defined concepts and/or constructs nology infrastructure and business model aspects. Therefore, we de-
that are organized systematically to yield a focus, logical foundation liberately chose to take a broader approach that not only takes into
and tool for integrating and interpreting information and data consideration public IoT frameworks but also IoT frameworks in gen-
(McGregor, 2018) and “explains, either graphically or in narrative eral and IoT business models. In addition to the essential findings from
form, the main things to be studied – the key factors, constructs or IoT-related public sector research, this broader approach allows us to
variables – and the presumed interrelationships among them” (Miles, identify and transfer insights with regard to IoT frameworks from other
Huberman, & Saldaña, 2014, p. 20). research contexts to public sector research.
Conceptual frameworks like the one in this study not only facilitate These insights can thus meaningfully complement respective find-
abstraction and conceptualization of a complex research issue but also ings from public sector research and contribute to the key purpose of
enable more comprehensive manners of investigating the latter this article. This refers to developing a comprehensive and integrative
(Eisenhart, 1991; Shehabuddeen, Probert, Phaal, & Platts, 1999), thus concept of available IoT frameworks, from which researchers and or-
supporting the “understanding and communication of structure and ganizations can draw insights and which supports and facilitates their
relationship within a system for a defined purpose” (Shehabuddeen IoT endeavors. Overall, science and management can greatly benefit
et al., 1999, p. 9). Moreover, they are essential particularly for new and from the synthesis of interdisciplinary knowledge that is based on a
emerging fields of research like IoT that are often heterogeneous and structured analysis of framework-related IoT literature. Against this
lack a clear structure and research directions, as “they are like scaf- background, we first performed a title and abstract search on
foldings of wooden planks that take the form of arguments about what EBSCOhost by means of the leading and to our research issue relevant
is relevant to study and why” (Eisenhart, 1991, 210 f.) and thus help to academic databases (Business Source Complete, Academic Search
structure and provide direction. Complete, and EconLit with Full Text). In analyzing the literature and
Following the above-mentioned deliberations, the integrative public to identify a relevant set of IoT frameworks based on state-of-the-art
IoT framework particularly aims to provide a comprehensive overview research, we only considered peer-reviewed articles in English language
of central elements, components and aspects of the IoT concept, which that had been published within the last ten years.
may contribute to its common understanding and may serve as a The literature research contained two major steps: In order to create
structuring aid by organizing and structuring the respective field of a significant foundation of the IoT framework literature, our first search
research. focused on publications that present conceptual IoT frameworks (key-
Moreover, it is highly relevant for framework-oriented empirical words: “IoT” and “frameworks”), leading to a total of 125 search

2
Table 1
Overview of IoT frameworks and identified framework dimensions and components.
Components Technology infrastructure Services/ business model Spectrum coverage
of IoT framework
B.W. Wirtz et al.

Author(s) Data centers M2M network/ internet infrastructure Endpoints/connected objects Services Business model components

Bandyopadhyay and Sen • Access gateway layer • Edge technology layer • Applications layer
(2011) • Internet layer
• Middleware layer
ITU (2012) • Network layer (networking capabilities/ • Device layer (device • Application layer (IoT
transport capabilities capabilities/ gateway applications)
• Management (general/specific) and capabilities) • Service support and application
security (general/specific) capabilities • Management (general/ layer (generic support
specific) and security capabilities/ specific support
(general/specific) capabilities)
capabilities • Management (general/specific)
and security (general/specific)
capabilities
Gubbi et al. (2013) • Cloud computing (SaaS, • Wireless sensor networks “Network of • Applications (surveillance,
PaaS, IaaS, visualization, Things” (security, re-configurability, critical infrastructure,
computation, analytics, quality of service, communication monitoring, environmental
storage) protocols, location awareness, monitoring, health monitoring,
compressive sensing) smart transportation)
Mitchell et al. (2013) • Central data collection • Network Services • Sensors and networked • New and innovative applications
(computing, storage and devices and services
analytics combined with • Data capture, processing,
integrated APIs) storage and analytics at
distributed points
Porter and Heppelmann cloud (network communication)

3
(2014)
• Productproduct applications
• Connectivity
for external information
• Product software (e.g.,
• Smart engine
• Gateway
sources
• Product
embedded operating
• Rules/analytics
platform with business system (ERP; system
• Application
data database
• Integration
CRM; PLM) hardware (e.g.,
• Product • Product
embedded sensors)
• Identity & security • Identity & security & security
Taylor (2014) computing and Connection (backhaul, mobile
• Identity city solutions monetization
• Cloud
storage
• Network
data)
• Device management • Smart management
• Platform
access (Managed Wi-Fi)
• Application
operations platform
• Advertising analytics
• Managed security • Network operations platform (networks
• Shared
(customer care
• Monetization
subscription
• Shared
operations center/ incident
• Access
management
• Mobile offload
Dijkman et al. (2015) • Key partners
• Key activities
• Key resources
• Value propositions
• Customer relationships
• Customer segments
• Channels
structure
• Cost
• Revenue streams
(continued on next page)
Government Information Quarterly xxx (xxxx) xxx–xxx
Table 1 (continued)

Components Technology infrastructure Services/ business model Spectrum coverage


of IoT framework
Author(s) Data centers M2M network/ internet infrastructure Endpoints/connected objects Services Business model components
B.W. Wirtz et al.

Pang et al. (2015) • Information system • Information system integration • Device and service • How to establish an
integration architecture architecture (interoperability and integration architecture innovative business model to
(efficient data fusion, extendibility, 3C platform, convenient deliver value
standardized and secure and trusted software distribution, • What should the solution
procedures) service composition) deliver
• Value chain analysis
• Value creation and
functionality
• Benefit distribution and work
flow
Qiu et al. (2015) • Management platform layer • Gateways and gateway operating system • Smart asset layer (GPS; • Applications layer
(data management, layer PDA; Sensor; RFID Tag; • Management platform layer
database) • Management platform layer (network Barcode) (service management, decision
management) models)
Gomes and • What: business opportunity;
Moqaddemerad customer groups; value
(2016) proposition; product
offerings; competition and
partnering
• How: competitive advantage;
marketing and sales; key
resources; key operations
• Why: basis of pricing; cost
drivers and elements

4
Ang et al. (2017) • Datacenter layer: repository • Connectivity layer (cellular 3G/4G/5G, • Connectivity layer • Application layer (industry-
and storage (cloud) WiFi, Bluetooth etc.) (sensors, collectors) specific, contextual applications)
• Analytics layer (structured, • End users (resident, visitor, public
semi-structured, agencies)
unstructured data, near real-
time)
Yelamarthi et al. (2017) • Application management • Internet gateway • Physical sensors and
cloud server (data analytics • Wireless transceiver technologies actuators (accelerometer,
and automation) (Bluetooth, WiFi, ZigBee) touch, infrared, RFID etc.)
• Low-power embedded
processor
Elaboration of IoT
framework
components

Very low, Low, Medium, High, Very high.


Government Information Quarterly xxx (xxxx) xxx–xxx
B.W. Wirtz et al. Government Information Quarterly xxx (xxxx) xxx–xxx

results. To integrate a more practical perspective on the topic, we also of elaboration.


searched for publications dealing with IoT in connection with business Moreover, while the service component of the services/business
models (keywords: “IoT” and “business model”), leading to 19 search model dimension has been moderately addressed in the past and thus
results. Of these in total 144 publications, 114 were excluded through has a medium level of elaboration, the business model component of
title and abstract screening and 24 were excluded after full-text the services/business model dimension has received little attention so
screening. As an interim result, we could identify six relevant IoT fra- far and is thus characterized by a low level of elaboration.
meworks from this procedure. To draw an interim conclusion, the comparatively low level of
To complement our relevant set of IoT frameworks, we further elaboration of the dimension services/business models and particularly
scrutinized the list of references of these publications by means of a the business model component by itself indicate that these have been
snowballing approach and also searched the Google Scholar database, rather rarely addressed in the past and are thus less pronounced com-
which yielded six additional studies that had not come up in the initial pared to the technology infrastructure dimension and its respective
database search. Consequently, our final relevant set includes twelve components, which all are characterized by high level of elaboration.
IoT frameworks. In the next step, we analyzed and evaluated these Furthermore, while seven out of these ten studies concerning the
frameworks, extracting relevant insights for the integrative framework technology infrastructure components also emphasize the services
to be developed. Table 1 presents the twelve IoT frameworks identified component of the services/business model dimension (Ang et al., 2017;
and summarizes the findings of the framework analysis and evaluation, Bandyopadhyay & Sen, 2011; Gubbi et al., 2013; International
which are elaborated in the following. Telecommunication Union, 2012; Mitchell et al., 2013; Qiu et al., 2015
The identified and above-mentioned IoT frameworks refer to dif- and Taylor, 2014), there are only two approaches combining tech-
ferent application areas. While most of the frameworks particularly nology infrastructure components with the business model component
focus on private sector industries (e.g., Bandyopadhyay & Sen, 2011; (Pang et al., 2015; Taylor, 2014). The results also show that the spec-
Dijkman et al., 2015; International Telecommunication Union, 2012; trum coverage of IoT framework components addressed by the different
Qiu et al., 2015), there are only few that place special emphasis on the framework approaches not only varies across the overarching dimen-
public sector or government (Ang et al., 2017; Mitchell et al., 2013). sions technology infrastructure and services/business model, but also
Moreover, the frameworks identified vary in content, method and within these dimensions. More specifically, not all of the studies that
variety, which indicates that there are various ways of how researchers focus on the technology infrastructure dimension include all of the
have approached the development of IoT frameworks so far. Before three underlying components data centers, M2M network/Internet in-
evaluating these frameworks, we systematically identified their core frastructure and endpoints/connected object. For instance, while
dimensions and common components. Therefore, we thoroughly ex- Bandyopadhyay and Sen (2011) and International Telecommunication
amined and compared the existing IoT frameworks and their individual Union (2012) do not include the data centers component of the tech-
components. nology infrastructure dimension, Gubbi et al. (2013) omit the end-
This analysis revealed that these frameworks address or can be as- points/connected objects component. Likewise, most of the studies re-
signed to two overarching dimensions regarding content: technology ferring to the services/business model dimension only address one of
infrastructure and services/business model. These dimensions, in turn, either component within this dimension (e.g., Dijkman et al., 2015;
can be divided into different components. While the technology infra- Pang et al., 2015; Qiu et al., 2015).
structure comprises the three components of data centers, M2M net- Besides these content-related differences with regard to the spec-
works/Internet infrastructure and endpoints/connected objects, the trum coverage of IoT framework components among the various ap-
service/business model dimension includes the services and business proaches, the number of components addressed by each approach may
model components. Concerning a qualitative evaluation of the frame- also vary strongly, ranging from one to five. While the work of Dijkman
works against these dimensions and components, the spectrum of ad- et al. (2015) and Gomes and Moqaddemerad (2016), for instance, ex-
dressed or covered IoT framework components (Spectrum Coverage of clusively refers to one component (business model) and thus addresses
IoT Framework Components) and the level of elaboration of corre- a small spectrum of IoT framework components, the attempt by Taylor
sponding components (Elaboration of IoT Framework Components) (2014) is the only one that deals with data centers, M2M network/
appear to be reasonable assessment criteria (Wirtz & Daiser, Internet infrastructure, endpoints/connected objects, as well as services
2017a).While the so-called Harvey ball ideograms on the right-hand and business model, thus referring to all of the five components iden-
side of Table 1 indicate the extent of spectrum coverage of the IoT tified and covering a very large spectrum of IoT framework compo-
framework components, the Harvey balls below Table 1 show the ex- nents.
tent of elaboration of IoT framework components. However, there are also substantial differences among the frame-
The analysis of existing IoT frameworks in the literature gives a works with regard to the degree of differentiation or abstraction. While
rather imbalanced and heterogeneous view of the IoT framework di- some approaches address the components on a broad level, others are
mensions and their components. In particular, the spectrum coverage of more specific in their statements. For instance, although there are few
IoT framework components, their level of elaboration and degree of approaches such as those of Taylor (2014) or Qiu et al. (2015) that are
differentiation or abstraction differ widely among the IoT frameworks characterized by a high to very high spectrum coverage of framework
identified. In this connection, Table 1 reveals that ten studies address components, these approaches have a relatively low degree of differ-
the components of the IoT technology infrastructure (Ang et al., 2017; entiation and specifity for implementation compared to other studies,
Bandyopadhyay & Sen, 2011; Gubbi et al., 2013; International such as Dijkman et al. (2015) or Gomes and Moqaddemerad (2016),
Telecommunication Union, 2012; Mitchell et al., 2013; Pang et al., which are characterized by a low spectrum coverage of framework
2015; Porter & Heppelmann, 2014; Qiu et al., 2015; Taylor, 2014 and components, but are described in great detail.
Yelamarthi, Aman, & Abdelgawad, 2017), while two studies do not To sum up, the thorough analysis of existing IoT frameworks shows
include any components of the IoT technology infrastructure dimen- that there are substantial differences among the different frameworks
sion, but rather focus on business models in the context of IoT (Dijkman with regard to their context of investigation, the spectrum of framework
et al., 2015; Gomes & Moqaddemerad, 2016). The most frequently components addressed and their overall level of elaboration, as well as
addressed IoT framework components are M2M network/Internet in- their degree of differentiation or abstraction. Most strikingly, the
frastructure and endpoints/connected objects, which both pertain to findings show that there is a lack of knowledge with regard to the
the IoT technology infrastructure and thus have a high level of ela- public sector or smart government and respective IoT frameworks.
boration. Although, the data centers component of the technology in- In addition, our analysis reveals that corresponding research has
frastructure has been addressed to a lesser extent, it still has a high level particularly focused on the technological aspects of the IoT, while

5
B.W. Wirtz et al. Government Information Quarterly xxx (xxxx) xxx–xxx

Fig. 1. Basic structure and macro/micro-level integration of


Public Strategic Layer framework layers.
Macro-Level

Public Value Creation Layer Public Demand Layer

Micro-Level Technology Infrastructure Layer

rather neglecting business model aspects. In this connection, our find- public IoT respectively smart government setting, complementing it
ings suggest a gap of integrative approaches, thereby also indicating with a public IoT technology component. This technology component is
that there is a tradeoff between a quantitative and qualitative con- embodied by the technology infrastructure layer that reflects the
sideration of relevant IoT framework components, which either goes at technical-functional characteristics and capabilities of a specific IoT
the expense of a reasonable implementation specificity or does not application or service and is thus located at the micro-level. In contrast,
grasp an understanding of the multifaceted and complex character of the public demand layer, public value creation layer and public stra-
IoT. tegic layer as core layers of the service and business model are posi-
Taken together, there is a need for an integrative perspective on IoT tioned at the macro-level, as they all pertain to the broader IoT eco-
and more specifically, for developing an integrative public IoT frame- system. The public demand layer and public value creation layer both
work that unifies prior insights and bridges the basic overarching di- place special emphasis on the IoT service environment. While the public
mensions of the IoT, in particular, technology infrastructure and ser- demand layer addresses the market demand and the particular needs of
vice/business models. In accordance with a normative procedure, such recipients of IoT services, the public value creation layer deals with the
an integrative framework may not only contribute to a common un- corresponding creation of value (Wirtz et al., 2016; Wirtz & Daiser,
derstanding of the IoT concept among researchers and practitioners, 2017b).
particularly in the context of the public sector and smart government, On top of these layers, is the public strategic layer that includes the
but also may be a valuable point of reference for IoT research and IoT overarching strategy with regard to an IoT initiative and greatly im-
implementation. pacts the line of approach in all other layers and directs them towards a
primary objective defined. Fig. 1 depicts the basic structure of the
above-mentioned framework layers and shows their macro/micro-level
3. Developing an integrative IoT framework integration.
In the following, we further elaborate on these layers and explain
Combining the dimensions identified in a common integrative fra- the integrative public IoT framework in detail.
mework is essential to live up to the complexity and multifaceted
character of IoT and its implementation. An isolated consideration of
the dimensions is not sufficient and expedient for successfully im- 3.1. Public strategic layer
plementing IoT and creating public value therefrom. Besides the fre-
quently addressed technological components, the so far rather ne- As indicated above, at the heart of any business model is an over-
glected business model component is of great importance in this arching strategy or primary objective that is supposed to generate or
connection. This is mainly because the specific challenge of public secure an organizational advantage. Particularly relevant in this con-
administration and smart government does not lie in the assimilation of nection is the public strategic layer that comprises a strategy model, a
technology, as this can be easily acquired through outsourcing, but resources model and a network model. These strategic components of
rather in adjusting traditional structures and processes of public ad- business models have been increasingly subject to research endeavors
ministration to the innovative field of IoT. The bridge between these since the turn of the millennium and have considerably gained in im-
two diverging aspects is the business model component since it makes portance (Chesbrough, 2006). The public strategic layer is the first part
the migration path and implementation process more effective and ef- of the integrative public IoT business model and particularly important
ficient. In line with this argumentation, previous research also em- when it comes to evaluating public value creation (Wirtz & Daiser,
phasizes the need for a more comprehensive and integrative perspective 2017b).
on IoT (Bernsteiner & Schlögl, 2017). To begin with, the strategy model defines the long-term objectives
In the following, we therefore develop an integrative public IoT of a public IoT business model, which basically pertains to creating
framework that combines the dimensions identified, thus satisfying the public value. Referring to the three public value dimensions proposed
complexity of successfully implementing IoT and the corresponding by Moore (2002), the strategy model of a public IoT business model
research demand. An integrative framework should always combine the consists of three superior strategic objectives.
relevant internal and external aspects, conceptually integrating and First, it aims at improving public IoT services by enhancing the ef-
representing these underlying components. However, before in- ficiency and economy of IoT service provision. In addition, the strategy
tegrating these components into a comprehensive and elaborate fra- model seeks to improve IoT service outcomes, thus increasing the ef-
mework, it appears reasonable for the sake of simplicity and under- fectiveness of goal attainment. Finally, its mission also consists in in-
standing to first describe their basic structure and macro/micro-level creasing trust in public actors, particularly government, public admin-
integration. istration and public service providers. Besides these superior strategic
Addressing the service and business model dimension, previous goals, strategic decision-making plays a central role within the strategy
business model research suggests that an integrative public business model, especially with regard to value creation.
model is composed of three components, including the public strategic An important strategic decision in the context of IoT, for instance,
component, the customer/user and public demand component, as well refers to the question of how to develop and provide services. Here,
as the public value creation component (Wirtz & Daiser, 2017b; Wirtz, governments and public organizations can choose between different
Pistoia, Ullrich, & Göttel, 2016). In light of the importance of tech- strategic options, including an in-house, outsourcing or mixed ap-
nology in the context of IoT and in living up to the purpose of bridging proach, which in turn may affect further strategic decisions. For in-
the basic dimensions of IoT, we adapt this conceptualization to the stance, the degree to which governments and public organizations

6
B.W. Wirtz et al. Government Information Quarterly xxx (xxxx) xxx–xxx

implement own IoT systems or rely on external system providers, such composed of the public procurement model, the budget model and the
as IBM or Siemens, has important implications for their strategic deci- public service creation model, which are described in the following.
sions with regard to IT and data security, which in turn are crucial The public procurement model depicts the structure and sources of the
aspects of their technology model. This example also highlights the resources or input factors that are required for developing public IoT
interdependence among the different models in the integrative IoT products or services and creating public value therefrom. In doing so, it
framework proposed in this study. Finally, given the very dynamic IoT also includes respective goals, measures and management activities,
environment, successfully implementing the IoT in the public sector such as information analysis and the monitoring/controlling of re-
requires a certain strategic flexibility and thus to discover new strate- sources (Wirtz & Daiser, 2017b). Against this background, one can
gies for IoT-based public services and solutions in order to recognize distinguish between two major procurement sources in the public IoT
and adequately respond to new challenges (Mitchell et al., 2013). context.
Aside from the strategy model, resources – be it tangible and in- On the one hand, there are private/commercial providers, including
tangible or internal and external in nature – are regarded as critical open data platform operators, commercial IoT platform operators such
when it comes to business models and value generation (Currie, 2004; as Siemens (MindSphere) or IBM (Watson), as well as IoT software
Demil & Lecocq, 2010; Osterwalder & Pigneur, 2010). This aspect is developers and other IoT technology suppliers. On the other hand, there
taken into account in terms of the resource model that constitutes an- are public providers, like agencies or departments that may play a
other important component of an integrative business model, addres- crucial role in procuring information or technology relevant for service
sing the questions of how resources are integrated within an organi- development and provision. For the best outcome of the public pro-
zation and how they are translated into viable services or products. curement model, it is important that the different IoT providers co-
Accordingly, the resources model defines the input factors necessary for operate successfully to ensure the interoperability and compatibility of
creating public value (Wirtz et al., 2016; Wirtz & Daiser, 2017b). These their heterogeneous IoT technologies and solutions (Gomes &
input factors can be generally classified as core assets and core com- Moqaddemerad, 2016; Pang et al., 2015), which has been a major
petencies. challenge in the field of IoT.
Previous literature highlights that such key resources are also a Following the public procurement model, the second part of the
crucial feature of an IoT business model (Eskelinen, Räsänen, Santti, public value creation layer is the budget model. The budget model
Happonen, & Kajanus, 2017). More specifically, prior studies suggest fulfills the function of a financial model, which is regarded as a critical
that public IoT-specific core assets especially refer to resources such as component of a business model (Demil & Lecocq, 2010; Osterwalder,
the information technology infrastructure (e.g., hardware and software, Pigneur, & Tucci, 2005). More specifically, the budget model refers to
network and connectivity resources) and financial resources, while the financial planning and controlling of the cost and revenue structure,
public IoT-specific core competencies include specific employee skills describing an organization's cost and revenue streams as well as con-
and knowledge-related resources (Dijkman et al., 2015; Gomes & solidating the financial impact of the other models within the frame-
Moqaddemerad, 2016). In this connection, it also becomes apparent work (Wirtz, 2016).
that the resources model in the context of the IoT is particularly related In connection with the preceding public procurement model, the
to the technology model, since the technology infrastructure is not only cost structure is of special importance as it reflects the expenses for the
the focus of the technology model but also a critical core asset within resources or input factors needed to develop and provide an IoT service
the resources model to create public value. or product. In the context of the IoT, this particularly includes product
The last model of the public strategic layer refers to the network or system development costs (e.g., IT, hardware, software and per-
model, which describes the relationships among the actors involved in sonnel cost), as well as maintenance and logistics costs (Dijkman et al.,
developing or providing public IoT services and creating value there- 2015; Eskelinen et al., 2017; Gomes & Moqaddemerad, 2016). These
from. Previous research suggests that networks and partnerships may payment flows basically refer to two types of resources, that is tech-
greatly help organizations to create value (Al-Debei, El-Haddadeh, & nology and information or data, which are acquired from providers and
Avison, 2008; Voelpel, Leibold, & Tekie, 2004). In the public sector subsequently used for developing and providing an IoT service. Ac-
context, the network model accordingly includes the public business cordingly, the budget model connects the public procurement model
model networks and the public business model partners of governments with the public service creation model, which represents the third and
or public organizations, which may significantly contribute to public last part of the public value creation layer.
value creation. The public service creation model describes the actual generation of
Prior studies on the IoT also acknowledge the significant role of key value within the public value creation layer. More specifically, it de-
partnerships and respective networks, considering them as major con- termines the core features and processes of a user-oriented or citizen-
tributors to value and an important component of an IoT business centric service offering, depicting the transformation and refinement of
model (Dijkman et al., 2015; Eskelinen et al., 2017; Gomes & input factors (lower-order goods) – by means of intra-organizational
Moqaddemerad, 2016). In particular, key partners for governments or development processes – into sophisticated services (higher-order
public organizations in this connection are suppliers, such as software goods) that enhance public value (Wirtz et al., 2016; Wirtz & Daiser,
developers, hardware producers, data analysts or logistics partners, but 2017b).
also authorities, as well as launching customers or citizens. The network Against this background, public IoT services can be assigned to
model as such can be viewed as a tool to manage and control these three major types of service creation. The first type of public IoT service
cooperation partners, as well as the associated processes and services creation generates public value by providing processed information or
within the network. data to users or citizens. The process of service development and pro-
vision comprises the collection, analysis and systematization, classifi-
3.2. Public value creation layer cation, storage and on-demand provision of information or data.
Another type of public IoT service creation consists in enabling ma-
While the above-mentioned strategy model, resources model and chine-to-machine (M2M) interaction or human-to-machine (H2M) in-
network model together constitute the public strategic layer and thus teraction based on the analysis, automation and management of IoT
the first layer of the integrative public IoT framework, the second layer services and channels.
of the framework refers to the public value creation layer, which deals The last type of public IoT service creation is closely related to the
with the internal creation of value within the organization and ad- concept of open government, relying on its widely accepted principles
dresses the questions of how and under which conditions value can be of transparency, participation and collaboration (Lee & Kwak, 2012;
generated (Wirtz & Daiser, 2017b). The public value creation layer is Reddick & Ganapati, 2011; Wirtz, Piehler, Thomas, & Daiser, 2015).

7
B.W. Wirtz et al. Government Information Quarterly xxx (xxxx) xxx–xxx

This type refers to value creation by integrating users or citizens based provided according to their needs, which may also be accompanied by
on the these principles and making them part of the public IoT service co-creation relationships with users (Dijkman et al., 2015).
development. To sum up, the user model describes the final delivery of the public
IoT service from the public service provider to the respective end users
3.3. Public demand layer and thus represents the end of the public demand layer. After having
presented the public strategic layer, the public value creation layer, as
While the above-mentioned public procurement model, budget well as the public demand layer and their individual subordinated
model and public service creation model describe the public value models, the following section presents the technology infrastructure
creation layer, the third layer refers to the public demand layer, which layer and its constituting components as the final part of the integrative
addresses the service environment and focuses on market- and user- public IoT framework.
related aspects that greatly impact the design and operation of a busi-
ness model (Wirtz et al., 2016; Wirtz & Daiser, 2017b). The public 3.4. Technology infrastructure layer
demand layer comprises a public service offer model, a fee model and a
user model, which are described in the following. Given the variety of applications and respective settings, the broad
Previous business model research highlights the importance of a spectrum of technologies deployed, as well as the great and diverse
component within a business model that focuses on the market offer volume of exchanged data, the IoT is characterized by a great com-
and the underlying market structure, for instance, particularly taking plexity that demands an efficient information technology infrastructure
into account the value proposition associated with a service offering in order to successfully develop and provide IoT services. The tech-
(Demil & Lecocq, 2010; Johnson, 2010). In the public IoT framework at nology infrastructure layer takes account of this issue in terms of a
hand, this circumstance is reflected in the public service offer model technology model that is composed of the three components data cen-
that focuses on the market-related service offer and the respective ex- ters, M2M network/Internet infrastructure and endpoints/connected
ternal demand, analyzing and evaluating the needs and behaviors of objects, which have been identified earlier within the framework ana-
public stakeholders in order to ultimately translate them into value lysis of this article.
propositions and respective service offers. In this connection, it is of supreme importance to mention that the
Against this background, the public IoT respectively smart govern- information technology infrastructure needs to be capable of meeting
ment setting, is characterized by four important service offers referring the various and demanding security challenges associated with the IoT.
to the areas of information and communication, automation, transac- This is especially relevant in the public context, as the IoT may affect
tion and integration. While information and communication offers in- sensitive public infrastructures that are crucial to national security.
clude services such as location sharing, realtime notification and com- Moreover, the information technology infrastructure has to live up to
munication, as well as realtime environmental data provision, the challenging issues of standardization and interoperability in order
automation offers serve the purpose to automate various aspects, such to guarantee the effective and efficient delivery of IoT services.
as processes and transactions, services and capacity distribution. Ensuring the effective and efficient exchange and processing of data
Moreover, transaction offers comprise, for instance, remote trans- across the different components of the technology model also requires a
action control systems, mobile identification systems or stationary powerful information technology infrastructure and is of great im-
public service terminals. Finally, integration offers may include mobile portance for successful IoT service delivery.
government services or big data-based service and infrastructure opti- One of the most critical aspects of the technology model is the
mization. The value propositions associated with such IoT service offers endpoints/connected objects component. Endpoints not only serve for
particularly refer to improved outcomes for public stakeholders, such as the generation of data but also as the interface connecting humans and
higher performance, cost reductions, more convenience and usability or the machine network. Hence, we define endpoints, as the name implies,
greater comfort (Dijkman et al., 2015; Eskelinen et al., 2017; Hudson, to be the last electronic item between network and environment.
2017). Aligned with respective conclusions of Porter and Heppelmann (2014)
Closely connected to the above-described public service offer model and Mitchell et al. (2013), we differentiate two distinct roles of the
is the fee model, which represents the second component of the public connected endpoints: first, the data collection and automating aspect,
demand layer. The fee model corresponds to what business model lit- and, second, the H2M interface aspect.
erature has frequently referred to as revenue model and regarded as an Considering the first aspect, endpoints serve as sensors or devices
important component (Osterwalder et al., 2005; Osterwalder & Pigneur, that generate and forward data to the processing data centers. There are
2010). It depicts the incoming cash flows that a government or public rather sophisticated endpoints such as mobile devices that have own
organization may receive in exchange for providing an IoT service. processing capacities and rather simple sensors such as RFID Tags and
Here, many different forms of income streams are conceivable, among microphones that lack any processing capacity and simply generate and
which subscription and usage fees are particularly important in the send unprocessed data such as location, temperature or other in-
context of IoT (Dijkman et al., 2015). formation. In this context, the International Telecommunication Union
Similar to the budget model in the public value creation layer, the (2012, p. 8) differentiates the power of the endpoints in “device cap-
fee model assumes the role of an interface between the preceeding abilities” referring to the processing of data and “gateway capabilities”
public service offer model and the following user model that represents referring to their power to connect to respective networks.
the last component of the public demand layer. In this regard, the users The second aspect refers to the interface between humans and the
or customers of a product or service have frequently been addressed IoT. Various devices can serve as interfaces between people and the IoT,
and considered as a central component within business model literature for instance, mobile phones, smart speakers, smartwatches but also
(Bouwman, 2003; Mahadevan, 2004; Yip, 2004). Here, the user model service terminals and conventional computers. These interfaces act as
contains the target groups of a public IoT service that are usually de- the steering items of the IoT, as they receive commands from different
fined by means of certain user characteristics, demographic criteria, as people. Concerning the smart government setting, those humans are
well as the application context of the respective IoT service. either citizens or public service managers. In this context, it is im-
In principle, there are three major user groups in the context of portant to mention one central function of the H2M interface: The re-
public IoT, comprising citizens, private organizations and public orga- cognition of the identity of people and the associated data access rights.
nizations, which in turn could be further segmented into more specific Security endpoints can serve solely to identify respective personnel
target groups, if necessary. These user groups are essential since the through certain peculiarities of people such as fingerprints or voices,
service offers are usually user-oriented and thus developed and but also through simple passwords or identity card requests and

8
B.W. Wirtz et al. Government Information Quarterly xxx (xxxx) xxx–xxx

analysis. Heppelmann, 2014). The role of data centers, however, increases with
The M2M network /Internet infrastructure component refers to the the advancement of big data analysis. Large amounts of data can be
flawless connection and data transmission between the endpoints and analyzed and processed if they are collected and integrated in large
the data processing centers. There are various types of data transmis- data sets. The strength of the IoT therefore depends on the fact that data
sion protocols and infrastructure systems, which are connected through centers process large data sets and subsequently control connected
gateways that translate respective data to the required standards of the objects, rather than operating individual endpoints that are automated
matching networks. The M2M network/Internet infrastructure compo- on the basis of their limited data sets (Porter & Heppelmann, 2014).
nent largely corresponds with the network component described in the Therefore, data centers – as decentralized as they may be – are the focal
report of the International Telecommunication Union (2012). The ITU point of all components of the technology model, as they constitute the
defines two critical capabilities of networks: the resilience, control or point in which the large data sets are compiled, analyzed and translated
security capability and the transport or transmission capability. into concrete action.
The first capability refers to pertinent control functions of the net- Examples of such big data-driven and automated actions can be the
work connectivity, including access control tasks and the three AAA's: control of smart traffic lights, smart garbage collection or the auto-
authentication, authorization and accounting. The second capability mated directing of an ambulance to a traffic accident. Endpoints serve
refers to the complete, fast and flawless transmission of data. Similar to as sensors that send received and mostly unprocessed data to the data
the conventional World Wide Web (WWW) of connected servers, per- centers. In reference to the large amount of environmental information
sonal computers and mobile devices, the IoT uses different network of the endpoints, the data center draws respective conclusions and
components such as the global server network as well as rather small communicates corresponding orders to the endpoints, which then again
personal area networks (PANs) within the homes of individuals. In the send data of the respective action's results. By automatically analyzing
smart government context, several network concepts are relevant. The and incorporating outcome data from previous machine orders, the
wide area network (WAN) extends over large geographical distances machine starts learning and thus enters to the concept of artificial in-
and connects metropolitan area networks (MAN) that connect a geo- telligence (Wunder et al., 2014).
graphic area such as a city, which in turn is larger than the one covered A promising example in the context of smart government respec-
by a local area network (LAN) (Eklund, Marks, Stanwood, & Wang, tively smart city refers to smart and automated traffic steering, in which
2002). elements of the urban traffic infrastructure, such as streets, cars, traffic
The technology applied differs substantially among these diverse lights etc. are equipped with sensors or other respective IoT technology
networks, such that the respective network nodes and gateways are and intelligently coordinated in order to reduce traffic congestion and
particularly sensitive and critical in terms of security and public safety. emissions and improve traffic safety. For instance, traffic light intervals
One of the most significant challenges in this context is the lack of may be adjusted to the given traffic by incorporating historical data into
standards concerning IoT technologies (Al-Qaseemi, Almulhim, the automating process.
Almulhim, & Chaudhry, 2016). The combination of IoT technology and self-learning artificial in-
The last component of the technology model are the data centers telligence software that learns from previous pattern recognition in-
that process the information collected from the endpoints and received creasingly gains in importance and is another technological milestone
through the various components of the network. The concept of data in this context. Google's artificial intelligence group DeepMind has
centers does not necessarily imply a single physical data processing developed such a self-learning artificial intelligence program named
location that digests data and forwards the results respectively. In re- AlphaGo Zero. David Silver, AlphaGo's lead researcher highlights the
cent years, the processing capacity has been increasingly spread significance of this innovation for the future of the IoT: “It's more
throughout a decentralized network of servers that contribute proces- powerful than previous approaches because by not using human data,
sing capacity on demand. Such a cloud computing approach is also an or human expertise in any fashion, we've removed the constraints of
integral part of a modern IoT framework (Porter & Heppelmann, 2014). human knowledge and it is able to create knowledge itself” (Sample,
Moreover, it is important to note that the different nodes as well as the 2017, p. 1). Not least, this example shows how complex the manage-
connected objects themselves often enclose some processing cap- ment of IoT is in the smart government respectively smart city context.
abilities, as they contain some embedded operating systems (Porter & However, particularly in the context of smart government and with a
Heppelmann, 2014). The role of data centers, however, increases with principal security and privacy focus, most public IoT services still de-
the advancement of big data analysis. Large amounts of data can be pend on input from public service managers.
analyzed and processed if they are collected and integrated in large The above-described technology infrastructure layer forms the
data sets. The strength of the IoT therefore depends on the fact that data conclusion of the integrative public IoT framework developed in this
centers process large data sets and subsequently control connected article. Fig. 2 summarizes the foregoing deliberations with regard to the
objects, rather than operating individual endpoints that are automated four different layer and their individual components, presenting the
on the basis of their limited data sets (Porter & Heppelmann, 2014). integrative public IoT framework.
Therefore, data centers – as decentralized as they may be – are the focal
point of all components of the technology model, as they constitute the 4. Discussion and conclusion
point in which the large data sets are compiled, analyzed and translated
into concrete action. The starting point of the study at hand refers to the increasing im-
The last component of the technology model are the data centers portance of the IoT in the context of public management and research in
that process the information collected from the endpoints and received conjunction with its conceptual shortcomings, in particular, the lack of
through the various components of the network. The concept of data an integrative perspective that bridges technology-related and public
centers does not necessarily imply a single physical data processing business-related dimensions of the IoT concept in the public realm.
location that digests data and forwards the results respectively. In re- Against this background, the article identifies and analyzes previous
cent years, the processing capacity has been increasingly spread IoT frameworks, deducing respective essential dimensions and com-
throughout a decentralized network of servers that contribute proces- ponents of the IoT and unifying them into a common integrative fra-
sing capacity on demand. Such a cloud computing approach is also an mework. This conceptual approach not only harmonizes and brings
integral part of a modern IoT framework (Porter & Heppelmann, 2014). greater clarity to the heterogeneous framework-based research land-
Moreover, it is important to note that the different nodes as well as the scape of IoT, but also enhances our understanding of the public man-
connected objects themselves often enclose some processing cap- agement-specific key dimensions and aspects of IoT.
abilities, as they contain some embedded operating systems (Porter & In doing so, it may serve as a useful and holistic frame of reference

9
B.W. Wirtz et al. Government Information Quarterly xxx (xxxx) xxx–xxx

Fig. 2. Integrative public IoT framework.

that guides further scientific development of public IoT research and addressed in the literature and reflect the great novelty and complexity
practical IoT implementation in the context of smart government, of the IoT concept, which has often been emphasized in the literature,
which in turn are important preconditions for successfully exploiting especially in the context of public management and research.
the great potential that IoT holds for governments, public organizations The novelty of the IoT becomes particularly apparent when con-
and the general public. sidering the fact that there have been hardly any public sector-specific
An initial contribution of this study refers to analyzing existing IoT frameworks available so far. Those few available solely address the
frameworks and providing a systematic overview thereof for the first smart city context and completely neglect the business model compo-
time. The findings of the literature-based framework analysis also de- nent (Ang et al., 2017; Mitchell et al., 2013), which is particularly
monstrate that so far the concept of IoT has only been fragmentarily important from the provider perspective of public management or

10
B.W. Wirtz et al. Government Information Quarterly xxx (xxxx) xxx–xxx

administration on IoT, especially in terms of creating and delivering requirements and provides an acceptable level of differentiation across
value through the IoT. Accordingly, the framework developed in this all IoT framework components identified. This has been a major con-
study is to the best of our knowledge the first respective public man- cern in developing this integrative IoT framework, which thus makes a
agement approach that comprehensively conceptualizes IoT. Due to the significant contribution in filling in this research gap. Given the thin
lack of public sector-specific approaches, developing a respective fra- research base with regard to the IoT, it seems not only reasonable but
mework requires to draw upon more general and private sector-related especially necessary to see the bigger picture and to draw on related
frameworks and translate them into the public context with the aid of well-established fields of research, such as strategic or innovation
appropriate public management literature. management, transferring insights into public management research
In doing so, five integrative framework components of the IoT were and connecting them in a meaningful way with knowledge from the
deduced from previous IoT frameworks that were examined and com- latter. The integrative framework developed indicates that public
pared on an abstract level: (1) data centers, (2) M2M network/Internet management research particularly with regard to the IoT may greatly
infrastructure, (3) connected objects, (4) services, and (5) business benefit from broadening the perspective and transferring knowledge
model. These components should be generally taken into account when from other research areas. A good example in this context is the strategy
it comes to comprehensively investigating the IoT or addressing the model introduced within the integrative framework adapted from
design and implementation of IoT-based applications and services. In strategic management (Wirtz et al., 2016) and meaningfully combined
addition, the synopsis of the different framework approaches reveals with the public value concept of Moore (2002) and specific IoT litera-
the complexity and multifaceted character of the IoT, which manifests ture (e.g., Gomes & Moqaddemerad, 2016).
itself in the broad spectrum of IoT framework components identified. Furthermore, the integrative framework reveals that there exist in-
However, although previous research has acknowledged the com- teractions among the different components, suggesting that the latter
plexity of the IoT concept, it has omitted to take account of the full may not be considered in isolation, but rather need to be studied within
range of relevant components and thus has failed to live up to the a common framework. The strategy model, for instance, has an impact
multifaceted character of IoT (e.g., Bandyopadhyay & Sen, 2011; on all other framework components, since strategic decision-making in
Dijkman et al., 2015; Gomes & Moqaddemerad, 2016; Porter & one area may affect other areas (e.g., an IoT outsourcing strategy affects
Heppelmann, 2014). Instead, the prevalent understanding of IoT is the information technology security strategy).
particularly technology-driven and business-related aspects have been Another example refers to the IT platform as well as the respective
widely neglected (Bernsteiner & Schlögl, 2017). IoT hardware and software that play a crucial role in both the resources
In accordance with this, the framework analysis demonstrates that model and the technology model, thus also demonstrating that the more
in particular the technological components – data centers, M2M net- or less newly introduced business model component and the well-es-
work/Internet infrastructure and endpoints/connected objects – iden- tablished technology components of the IoT are connected to a certain
tified within the analysis have received great attention, while the ser- extent and therefore require to be examined by means of an integrative
vice component and particularly the business model component have perspective.
been rather overlooked (e.g., Gubbi et al., 2013; Mitchell et al., 2013; Furthermore, the integrative public IoT framework may be parti-
Porter & Heppelmann, 2014). cularly essential for the emerging field of empirical IoT research, con-
This is very surprising given the IoT's great impact on economy and tributing to and fostering both qualitative and quantitative research
society, yielding new services or products and business models that endeavors. On the one hand, it may serve as structuring aid for quali-
affect peoples' everyday and workaday life. Against this background, tative research approaches such as exploratory case studies and expert
the integrative framework developed greatly contributes to public IoT interviews to gain qualitative highly differentiated insights. On the
research as it places special emphasis on the services and business other hand, it can be used as conceptual foundation for developing and
model components in addition to the above-mentioned technological testing hypotheses in quantitative-confirmatory research attempts, for
components, thus meeting the current demands for “[…] a holistic and instance, for examining what factors (e.g., strategy model, technology
comprehensive approach […] to tackle the challenges inherited in IoT/ model etc.) to what extent impact implementation success of IoT.
IoS systems.” (Bernsteiner & Schlögl, 2017, p. 524). Besides that, the Besides these research implications for academics, the study at hand
framework's particular nexus of a business model and technology per- also holds practical implications for public managers dealing with the
spective lives up to the expectations associated with smart government, IoT and the associated services and solutions. In doing so, the in-
according to which the application of innovative business models and tegrative framework provides a clear and holistic conceptual guidance
technology are defining elements of smart government to address the for public officers, who due to the conceptual fuzziness and inchoate-
environmental, financial and service-related challenges the public ness of IoT may have had difficulties in the past to fully grasp the
sector is struggling with (Jiménez et al., 2015, p. 19). Especially, the concept of IoT and its individual components.
business model perspective of the framework may help public admin- The framework's high level of differentiation makes it particularly
istration to adjust its traditional structures and processes to the in- suitable for the application context, as it is associated with a high
novative field of the IoT, making the migration path and implementa- specifity of implementation. Accordingly, public managers can use
tion process more effective and efficient. these insights in the sense of a checklist to successfully develop and
Although, Taylor (2014), for instance, also provides a comprehen- implement IoT-based services and solutions.
sive framework that addresses all of the framework components iden- Considering that technology-based government services may
tified, it does not elaborate on these components in detail. However, the sometimes be implemented without a clear strategic direction (Wirtz &
degree of differentiation and elaboration with regard to individual Langer, 2017), public managers should particularly take heed of the
components plays a crucial role, as it determines the conceptual depth strategy model and be aware that it is highly important for governments
of their understanding and of the IoT concept as a whole. This is par- and public organizations to define and follow a clear strategy – which in
ticularly important for establishing a common and more fine-grained principle refers to the superior objective of increasing public value – in
understanding of the IoT concept among researchers and practitioners, order to effectively implement IoT-based solutions and services.
which in turn is necessary for providing both a solid and common In this connection, they should also keep in mind the necessity of
theoretical foundation for developing future research approaches, as strategic flexibility, particularly in view of the dynamic nature of the
well as the appropriate specificity for successfully developing and im- IoT and the respective technological environment. For instance, stra-
plementing IoT-based services and business models. tegic flexibility is especially relevant when it comes to security and
In this connection, the framework analysis reveals a major gap in privacy issues. Here, governments and public organizations need to be
research since there is no IoT framework available that meets these strategically flexible in terms of providing an adaptive infrastructure

11
B.W. Wirtz et al. Government Information Quarterly xxx (xxxx) xxx–xxx

that is able to cope with ever-changing security threats in the hetero- Atzori, L., Iera, A., & Morabito, G. (2010). The internet of things: A survey. Computer
geneous and dynamic IoT context (Sicari, Rizzardi, Grieco, & Coen- Networks, 54(15), 2787–2805.
Bandyopadhyay, D., & Sen, J. (2011). Internet of things: Applications and challenges in
Porisini, 2015). technology and standardization. Wireless Personal Communications, 58(1), 49–69.
Ensuring security and privacy in turn is closely connected with the Bernsteiner, R., & Schlögl, S. (2017). Design science and ThinkLets as a holistic approach
superior strategic objective of creating public value and an essential to design IoT/IoS systems. In L. Uden, W. Lu, & I.-H. Ting (Eds.). Knowledge man-
agement in organizations: 12th international conference, KMO 2017 (pp. 520–533).
requirement therefor, as it is crucial for building public trust and Beijing, China. Cham, Switzerland: Springer.
adopting IoT services or solutions, and thus ultimately for creating Boos, D., Guenter, H., Grote, G., & Kinder, K. (2013). Controllable accountabilities: The
public value. Taken together, public managers should not only be aware internet of things and its challenges for organisations. Behaviour & Information
Technology, 32(5), 449–467.
that strategy is a particularly important and influential building block Bouwman, H. (2003). State of the art on business models. Retrieved December 15, 2017,
in the context of the IoT, but also something that they need to challenge from https://de.scribd.com/document/14666/Bouwman-H-2003-State-of-the-Art-
on a regular basis and adjust over time. Business-Models.
Cenedese, A., Zanella, A., Vangelista, L., & Zorzi, M. (2014). Padova smart city: An urban
Despite the above-mentioned contributions to research and man-
internet of things experimentation. Proceeding of IEEE international symposium on a
agement, this study has some important limitations that deserve con- world of wireless, mobile and multimedia networks 2014 (pp. 1–6). Sydney, Australia:
sideration and bring to light interesting research opportunities for fu- IEEE.
ture research. To begin with, the limiting factors within our literature Chan, H. C. Y. (2015). Internet of things business models. Journal of Service Science and
Management, 8(4), 552–568.
search, including peer-reviewed scientific publications in English-lan- Chen, S., Xu, H., Liu, D., Hu, B., & Wang, H. (2014). A vision of IoT: Applications,
guage, may have excluded potentially relevant articles from the fra- challenges, and opportunities with China perspective. IEEE Internet of Things Journal,
mework analysis. 1(4), 349–359.
Chesbrough, H. W. (2006). Open business models: How to thrive in the new innovation
However, considering size and quality of the article set in combi- landscape. Boston, MA, USA: Harvard Business School Press.
nation with the systematic and extensive search approach, we feel Currie, W. (2004). Value creation from e-business models. Oxford, UK: Butterworth-
confident that is a rather minor issue. In addition, these search lim- Heinemann.
Demil, B., & Lecocq, X. (2010). Business model evolution: In search of dynamic con-
itations represent a common form of quality assurance and therefore sistency. Long Range Planning, 43(2–3), 227–246.
may have likely enhanced the research foundation of our analysis. Dijkman, R. M., Sprenkels, B., Peeters, T., & Janssen, A. (2015). Business models for the
Furthermore, the conceptual deductive approach of this study does not internet of things. International Journal of Information Management, 35(6), 672–678.
Eisenhart, M. A. (1991). Conceptual frameworks for research circa 1991: Ideas from a
allow to draw empirical conclusions. Therefore, the integrative frame- cultural anthropologist; implications for mathematics education researchers. In R. G.
work and its individual components require further empirical ex- Underhill (Ed.). Proceedings of the 13th annual meeting of the North American chapter of
amination and need to be challenged by respective studies that scruti- the psychology of mathematics education (pp. 202–219). (Blacksburg, VA, USA).
Eklund, C., Marks, R. B., Stanwood, K. L., & Wang, S. (2002). IEEE standard 802.16: A
nize them more rigorously and prove their empirical tenability.
technical overview of the WirelessMAN/sup TM/ air interface for broadband wireless
Moreover, given that some individual components and elements of the access. IEEE Communications Magazine, 40(6), 98–107.
framework, such as the strategy model, appear to stand out in im- Eskelinen, T., Räsänen, T., Santti, U., Happonen, A., & Kajanus, M. (2017). Designing a
portance, it would be interesting to examine them with regard to their business model for environmental monitoring services using fast MCDS innovation
support tools. Technology Innovation Management Review, 7(11), 36–46.
relevance for success. Friess, P. (2013). Driving European internet of things research. In O. Vermesan, & P.
Given the early stage and ichoate state of IoT research there are Friess (Eds.). Internet of things - converging technologies for smart environments and in-
various research opportunities available, particularly in the public tegrated ecosystems (pp. 1–6). Aalborg, Denmark: River Publishers.
Gomes, J. F., & Moqaddemerad, S. (2016). Futures business models for an IoT enabled
sector context. In general, IoT research could greatly benefit from healthcare sector: A causal layered analysis perspective. Journal of Business Models,
comprehensive literature reviews and meta studies that help to struc- 4(2), 60–80.
ture this heterogeneous field of study and to point out clear research Gubbi, J., Buyya, R., Marusic, S., & Palaniswami, M. (2013). Internet of things (IoT): A
vision, architectural elements, and future direction. Future Generation Computer
directions and opportunities. Moreover, the findings of this study sug- Systems, 29(7), 1645–1660.
gest that IoT research in general needs to open up for a business or Huang, Y., Chen, Z., & Xi, J. (2012). A new RFID tag code transformation approach in
administrative perspective that, for instance, investigates the role of internet of things. Journal of Networks, 7(1), 149–156.
Hudson, D. (2017). Value propositions for the internet of things: Guidance for en-
drivers and barriers with regard to organizational or governmental
trepreneurs selling to enterprises. Technology Innovation Management Review, 7(11),
implementation and acceptance among citizens, as well as business 5–11.
model and value creation aspects. In the context of public IoT research, International Telecommunication Union (2012): Series Y: Global information infra-
structure, internet protocol aspects and next-generation networks. Next generation net-
the latter issues, for instance, pertain to questions of how the IoT can
works – frameworks and functional architecture models. Overview of the internet of things.
contribute to public value, who are the key actors involved and so on. Retrieved December 15, 2017, from https://www.itu.int/rec/dologin_pub.as-
From a methodological perspective, there is a great demand for further p?lang=e&id=T-REC-Y.2060-201206-I!!PDF-E&type=items
exploratory studies that contribute to and elaborate on a common un- Jiménez, C. E., Falcone, F., Solanas, A., Puyosa, H., Zoughbi, S., & González, F. (2015).
Smart government: Opportunities and challenges in smart cities development. In Z.
derstanding of the IoT concept. Considering the heterogeneity of pre- Mahmood, Dolićanin, E. Kajan, D. Randjelović, & B. Stojanović (Eds.). Handbook of
vious approaches, meta-analyses and review studies systematizing the research on democratic strategies and citizen-centered e-government services (pp. 1–19).
so far relatively scattered field of IoT research would also be expedient IGI Global: Hershey, PA, USA.
Johnson, M. W. (2010). Seizing the white space: Business model innovation for transformative
and useful to the research community. growth and renewal. Boston, MA, USA: Harvard Business Press.
Overall, IoT research is still in its infancy and requires further Kennedy, R. (2016). E-regulation and the rule of law: Smart government, institutional
qualitative and quantitative research to conceptually extend and em- information infrastructures, and fundamental values. Information Polity, 21(1), 77–98.
Lee, G., & Kwak, Y. H. (2012). An open government maturity model for social media-
pirically support the study findings. Nevertheless, this study does some based public engagement. Government Information Quarterly, 29(4), 492–503.
conceptual spadework with regard to the IoT in the public context and Madakam, S., Ramaswamy, R., & Tripathi, S. (2015). Internet of things (IoT): A literature
thus provides a useful foundation for future research. review. Journal of Computer and Communications, 3(5), 164–173.
Mahadevan, B. (2004). A framework for business model innovation. Retrieved December
15, 2017, from http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.336.
References 3723&rep=rep1&ty pe=pdf
McGregor, S. L. T. (2018). Understanding and evaluating research: A critical guide. Thousand
Oaks, CA, USA: Sage.
Al-Debei, M. M., El-Haddadeh, R. E., & Avison, D. (2008). Defining the business model in
McKinsey Global Institute (2015). The internet of things: Mapping the value beyond the hype.
the new world of digital business. Proceedings of the 14th Americas conference on in-
Retrieved December 15, 2017, from https://www.mckinsey.de/files/unlocking_the_
formation systems (pp. 1–11). (Toronto, ON, Canada).
potential_of_the_internet_of_things_full_report.pdf
Al-Qaseemi, S. A., Almulhim, H. A., Almulhim, M. F., & Chaudhry, S. R. (2016). IoT
Mellouli, S., Luna-Reyes, L. F., & Zhang, J. (2014). Smart government, citizen partici-
architecture challenges and issues: Lack of standardization. 2016 future technologies
pation and open data. Information Polity, 19(1), 1–4.
conference (FTC) (pp. 731–738). San Francisco, CA, USA: IEEE.
Miles, M. B., Huberman, A. M., & Saldaña, J. (2014). Qualitative data analysis: A methods
Ang, L. M., Seng, K. P., Zungeru, A. M., & Ijemaru, G. K. (2017). Big sensor data systems
sourcebook (3rd edition). Thousand Oaks, CA, USA: Sage.
for smart cities. IEEE Internet of Things Journal, 4(5), 1259–1271.
Miorandi, D., Sicari, S., de Pellegrini, F., & Chlamtac, I. (2012). Internet of things: Vision

12
B.W. Wirtz et al. Government Information Quarterly xxx (xxxx) xxx–xxx

applications and research challenges. Ad Hoc Networks, 10(7), 1497–1516. reinvention: How to reshape your business model to leapfrog competitors. Journal of
Mitchell, S., Villa, N., Stewart-Weeks, M. & Lange, A. (2013). The internet of everything Change Management, 4(3), 259–276.
for cities: Connecting people, process, data and things to improve the livability of Wirtz, B. W. (2016). Business model management: Design process instruments. Textbook for
cities and communities. Edited by CISCO. Retrieved December 15, 2017, from http:// the digital society (2nd edition). Speyer, Germany: Amazon Media.
pie.pascalobservatory.org/sites/default/files/ioe-smart-city_pov.pdf Wirtz, B., & Daiser, P. (2017a). Business model innovation: An integrative conceptual
Moore, M. H. (2002). Creating public value: Strategic management in government (7th edi- framework. Journal of Business Models, 5(1), 14–34.
tion). Cambridge, MA, USA: Harvard University Press. Wirtz, B. W., & Daiser, P. (2017b). E-government: Strategy process instruments. Textbook for
Osterwalder, A., & Pigneur, Y. (2010). Business model generation: A handbook for vision- the digital society (2nd edition). Germany: Speyer.
aries, game changers, and challengers. New York, NY, USA: Wiley&Sons. Wirtz, B. W., & Langer, P. F. (2017). Public multichannel management: An integrated
Osterwalder, A., Pigneur, Y., & Tucci, C. L. (2005). Clarifying business models: Origins, framework of off- and online multichannel government services. Public Organization
present, and future of the concept. Communications of the Association for Information Review, 17(4), 563–580.
Systems, 16(1), 1–25. Wirtz, B. W., Piehler, R., Thomas, M.-J., & Daiser, P. (2015). Resistance of public per-
Pang, Z., Zheng, L., Tian, J., Kao-Walter, S., Dubrova, E., & Chen, Q. (2015). Design of a sonnel to open government. A cognitive theory view of implementation barriers to-
terminal solution for integration of in-home health care devices and services towards wards open government data. Public Management Review, 18(9), 1335–1364.
the internet-of-things. Enterprise Information Systems, 9(1), 86–116. Wirtz, B. W., Pistoia, A., Ullrich, S., & Göttel, V. (2016). Business models: Origin, de-
Porter, M. E., & Heppelmann, J. E. (2014). How smart, connected products are trans- velopment and future research perspectives. Long Range Planning, 49(1), 36–54.
forming competition. Harvard Business Review, 92(11), 64–88. Wunder, G., Jung, P., Kasparick, M., Wild, T., Schaich, F., Chen, Y., ... Wiedmann, F.
Qiu, X., Luo, H., Xu, G., Zhong, R., & Huang, G. Q. (2015). Physical assets and service (2014). 5GNOW: Non-orthogonal, asynchronous waveforms for future mobile ap-
sharing for IoT-enabled supply hub in industrial park (SHIP). International Journal of plications. IEEE Communications Magazine, 52(2), 97–105.
Production Economics, 159, 4–15. Xia, F., Yang, L. T., Wang, L., & Vintel, A. (2012). Internet of things. International Journal
Reddick, C., & Ganapati, S. (2011). Open government achievement and satisfaction in US of Communication Systems, 25(9), 1101–1102.
federal agencies: Survey evidence for the three pillars. Journal of E-Governance, 34(4), Yelamarthi, K., Aman, M. S., & Abdelgawad, A. (2017). An application-driven modular
193–202. IoT architecture. Wireless Communications and Mobile Computing, 2017, 1–16.
Sample, I. (2017). 'It's able to create knowledge itself': Google unveils AI that learns on its own. Yip, G. S. (2004). Using strategy to change your business model. Business Strategy Review,
Edited by The Guardian. Retrieved December 15, 2017, from https://www. the- 15(2), 17–27.
guardian.com/science/2017/oct/18/its-able-to-create-knowledge-itself-google-un-
veils-ai-learns-all-on-its-own Bernd W. Wirtz holds the Chair for Information and Communication Management at the
Shehabuddeen, N., Probert, D., Phaal, R., & Platts, K. (1999). Representing and ap- German University of Administrative Sciences Speyer, Germany. His research interests
proaching complex management issues: Part 1 - role and definition. Centre for tech- include e-business, e-commerce, social media, business model management and e-gov-
nology management (CTM) working paper no. 2000/03 (pp. 1–20). . ernment. E-Mail: Ls-wirtz@uni-speyer.de
Sicari, S., Rizzardi, A., Grieco, L. A., & Coen-Porisini, A. (2015). Security, privacy and
trust in internet of things: The road ahead. Computer Networks, 76, 146–164.
Silva, E. M., & Maló, P. (2014). IoT testbed business model. Advances in Internet of Things, Jan C. Weyerer works as a research associate and is a PhD candidate at the Chair for
4(4), 37–45. Information and Communication Management at the German University of
Suresh, P., Daniel, J. V., Parthasarathy, V., & Aswathy, R. H. (2014). A state of the art Administrative Sciences Speyer, Germany. His main research interests are e-business, e-
review on the internet of things (IoT) history, technology and fields of deployment. government, big data and artificial intelligence. Email: weyerer@uni-speyer.de
2014 International Conference on Science Engineering and Management Research
(ICSEMR) (pp. 1–8). Chennai, India: IEEE. Franziska T. Schichtel works as a research associate at the Chair for Information and
Taylor, S. (2014). How to make money from smart cities. Edited by CISCO. Retrieved Communication Management at the German University of Administrative Sciences
November 21, 2017, from https://blogs.cisco.com/sp/how-to-make-money-from- Speyer, Germany. Her main research interests are social media, e-health and smart cities.
smart-cities. Email: schichtel@uni-speyer.de
Voelpel, S. C., Leibold, M., & Tekie, E. B. (2004). The wheel of business model

13

You might also like