Economic Principles - KatharinaIoT/IoT-Project-HHZ GitHub Wiki

According to Elgar Fleisch, the logic of IoT business models can be described as hybrid solutions of physical products and digital services. In the following, we call it "The Fleisch Formula".

Because of the increasing amount of physical products that are based on digital business models, our company decided to also offer an IoT based product.

Media Disruptions A media disruption occurs when data is entered manually during information processing and errors occur. In addition, manual data entry requires a considerable amount of time, which can be greatly reduced by digital systems. Media disruptions slow down the processing of data and worsen the data quality.

Fleisch/Weinberger/Wortmann 2014, Page 7

The use of digital business models is becoming more and more relevant for traditional physical industries. In the Internet of Things, these two characteristics combined to create a hybrid construct. In the value creation levels shown above, it can be seen that a large number of IoT elements can be involved in such a hybrid product.

In order to this knowledge, we created KIM - an all-in-one vending machine. According to the Fleisch Formula, we created a product-service-logic for our IoT product - KIM. The Internet of Things‐Products‐Services Logic, Page 8

KIM - your smart drinking buddy - Fleisch Formula

Source: https://www.iot-lab.ch/wp-content/uploads/2014/11/EN_Bosch-Lab-White-Paper-GM-im-IOT-1_3.pdf