Wireless Personal Communications

, Volume 76, Issue 2, pp 291–309 | Cite as

The Sensing Business Model

  • Peter LindgrenEmail author
  • Annabeth Aagaard


The business model concept is not new and there has been an increasing number of papers published, fast growing communities on Business model’s (BM) and an abundance of conference sessions and panels on the subject of BM’s. Business model and business model innovation has been the focus of substantial attention by both academics and practitioners. However, it appears that researchers and practitioners have yet not researched widely on how sensors can be applied and embedded in BM’s and what businesses can gain from sensing business models (Lindgren and Taran in J Green Eng 2:1–10, 2011). Society and Businesses today invest tremendous amount of resources in sensors and digitalization to achieve better and deeper understanding of their BMs. Taking these enormous amounts of resources invested into account, when creating a “sensing BM” still turn out to be a very complex venture and has several invention iteration still to go before we reach a full scale “sensing business model”. The paper shows different levels and attempt of sensing business models and shows these in reference of a definition and framework of a sensing business model. Five different businesses—working with different sensing BM’s and sensor technology—are presented. The use cases show combination of biological and mechanical sensors together with physical and digital sensors. In combination the sensoring BM could lead businesses into a new area of business modeling.


Sensing business models Multi business models Biological and mechanical sensors Physical and digital sensors  Mega and big data Business model innovation 


  1. 1.
    Amit, R., & Zott, G. (2001). Value creation in e-business. Strategic Management Journal, 22(6–7), 493–520.CrossRefGoogle Scholar
  2. 2.
    Casadesus-Masanell, R., & Ricart, J. E. (2010). From strategy to business models and onto tactics. Long Range Planning, 43(2), 195–215.CrossRefGoogle Scholar
  3. 3.
    Chesbrough, H. (2003). Open innovation: The new imperative for creating and profiting from technology. Boston, MA: Harvard Business School Publishing.Google Scholar
  4. 4.
    Chesbrough, H. (2007). Open business models: HOM’ to thrive in the new innovation landscape. Boston: Harvard Business School.Google Scholar
  5. 5.
    Chesbrough, H., & Rosenbloom, R. (2002). The role of the business model in capturing value from innovation. Industrial and Corporate Change, 11(3), 529–556.CrossRefGoogle Scholar
  6. 6.
    Christensen, G. M., & Raynor, M. (2003). The innovator’s solution. Boston: Harvard Business School Press.Google Scholar
  7. 7.
    Coase, R. H., & Wang, N. (2012). Emotion in the.. Zero defections: Quality comes to services. Harvard Business Review, 90(12), 36.Google Scholar
  8. 8.
    Corkindale, D. (2010). Towards a business model for commercializing innovative new technology. International Journal of Innovation and Technology Management, 7(1), 37–51.CrossRefGoogle Scholar
  9. 9.
    Fielt, D. E. (2011, March 31). Outcomes. Smart Services CRC. Retrieved on 13 April 2011.
  10. 10.
    Govindarajan, V., & Trimble, G. (2005). Ten rules for strategic innovators: From idea to execution. Boston: Harvard Business School Press.Google Scholar
  11. 11.
    Hedman, J., & Kalling, T. (2003). The business model concept: Theoretical underpinnings and empirical illustrations. European Journal of Information Systems, 12(1), 49–59.CrossRefGoogle Scholar
  12. 12.
    Hemphill, T. A. (2006). A taxonomy of closed and open source software industry business models. International Journal of Innovation and Technology Management, 3(1), 61–82.CrossRefGoogle Scholar
  13. 13.
    Kale, D. (2012). Innovative capability development in the Indian Pharmaceutical industry. International Journal of Innovation and Technology Management, 9(2)13-19.Google Scholar
  14. 14.
    Kirkpatrick, M. (2010). Interview Eric Schmidt, Google at The Techonomy conference Lake Tahoe August 04, 2010.Google Scholar
  15. 15.
    Kvale, S., & Brinkmann, S. (2009). Interviews: Learning the craft of qualitative research interviewing, Los Angeles. California: Sage.Google Scholar
  16. 16.
    Lang, F. (1947). Insurance research. Journal of Marketing, 12(1), 66–71.CrossRefGoogle Scholar
  17. 17.
    Linder, J., & Cantrell, S. (2000). Changing business models: Surfing the landscape. Cambridge, MA: Accenture Institute for Strategic Change.Google Scholar
  18. 18.
    Lindgren, P., Taran, Y., & Boer, H. (2010). From single to network based business model innovation. Journal of Entrepreneurship and Innovation Management, 12(2/3), 122–137.CrossRefGoogle Scholar
  19. 19.
    Lindgren, P., & Taran, Y. (2011). A Futuristic outlook on business models and business model innovation in a future green society. Journal of Green Engineering, 2, 1–10.CrossRefGoogle Scholar
  20. 20.
    Lindgren, P. (2013). The business model cube. Journal of Multi Business Model Innovation and Technology, 1(2)135-182.Google Scholar
  21. 21.
    Magretta, J. (2002). Why business models matter? Harvard Business Review, 80(5), 86–92.Google Scholar
  22. 22.
    Markides, C. (2008). Game-changing strategies: How to create new market space in established industries by breaking the rules, Jossey-Bass.Google Scholar
  23. 23.
    Markides, C. (2013). Business model innovation: What can the ambidexterity literature teach us? The Academy of Management Perspectives, 27(4), 313–323.CrossRefGoogle Scholar
  24. 24.
    Markides, C., & Charitou, C. (2004). Competing with dual business models: A contingency approach. Academy of Management Executive, 18(3), 22–36.CrossRefGoogle Scholar
  25. 25.
    Morris, M., Schindehutte, M., & Allen, J. (2003). The entrepreneur’s business model: Toward a unified perspective. Journal of Business Research, 58(6), 726–735.CrossRefGoogle Scholar
  26. 26.
    Osterwalder, Y. P., & Tucci, C. L. (2005). Clarifying business models: Origins, present and future of the concept. Communications of the Association for Information Systems, 16, 1–25.Google Scholar
  27. 27.
    Seddon, P. B., Lewis, G. P., Freeman, P., & Shanks, G. (2004). The case for viewing business models as abstractions of strategy. Communications of Association for Information Systems, 13(1), 427–442.Google Scholar
  28. 28.
    Shafer, S. M., Smith, H. J., & Linder, J. C. (2005). The power of business models. Business Horizons, 48(3), 199–207.CrossRefGoogle Scholar
  29. 29.
    Spencer J.C. (2013). Strategy: Managing uncertainty, opportunity, and enterprise. May 2013 1–262OUP 2014.Google Scholar
  30. 30.
    Taran, Y. (2011). Re-thinking it all: Overcoming obstacles to business model innovation center for industrial production. Ph.D Thesis, Aalborg University.Google Scholar
  31. 31.
    Taran, Y., Boer, H. & Lindgren, P. (2014) A business model innovation typology. Journal of Decision Science,45(2).Google Scholar
  32. 32.
    Teece, D. J. (2010). Business models, business strategy and innovation. Long Range Planning, 45(2–3), 172–194.CrossRefGoogle Scholar
  33. 33.
    Zott, C., & Amit, R. (2010). Designing your future business model: An activity system perspective. Long Range Planning, 43, 216–226. doi: 10.1016/j.lrp.2009.07.004.CrossRefGoogle Scholar
  34. 34.
    Zott, C., Amit, R., & Massa, L. (2011). The business model: Recent developments and future research. Journal of Management, 37(4), 1019–1042.CrossRefGoogle Scholar

Copyright information

© Springer Science+Business Media New York 2014

Authors and Affiliations

  1. 1.Business and Social SciencesAarhus UniversityHerningDenmark
  2. 2.Department of Leadership and StrategyUniversity of Southern DenmarkOdenseDenmark

Personalised recommendations