Business Value of the IoT : A Project Portfolio Selection Approach

Titelangaben

Fähnle, Annika ; Püschel, Louis ; Röglinger, Maximilian ; Stohr, Alexander:
Business Value of the IoT : A Project Portfolio Selection Approach.
In: Proceedings of the 26th European Conference on Information Systems (ECIS). - Portsmouth, UK , 2018
ISBN 978-1-86137-667-1

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Abstract

The Internet of Things (IoT) counts among the most disruptive digital technologies on the mar-ket. Despite the IoT’s emerging nature, there is an increasing body of knowledge related to technological and business topics. Nevertheless, there is a lack of prescriptive knowledge that provides organizations with guidance on the economic valuation of investments in the IoT per-spective. Such knowledge, however, is crucial for pursuing the organizational goal of long-term value maximization. Against this backdrop, we develop an economic decision model that helps organizations determine an optimal IoT project portfolio from a manufacturer’s perspective and complies with the principles of project portfolio selection and value-based management. For our purposes, IoT project portfolios are compilations of projects that aim to implement IoT technol-ogy in an organization’s production process, products, or infrastructure. Our decision model schedules IoT projects for multiple planning periods and considers monetary as well as mone-tized project effects. On this foundation, it determines the project sequence with the highest val-ue contribution. To evaluate our decision model, we discussed its real-world fidelity and under-standability with an industry expert renowned for its proficiency in IoT technology, implemented a software prototype, and demonstrated its applicability based on real-world data.