Business modeling based on internet of things: a case study of predictive maintenance software using ABS model

Abstract

The Internet of Things (IoT) from a computational viewpoint is the evolution and convergence of High Throughput Computing (HTC) and High-Performance Computing (HPC) with other developments such as grid computing and peer-to-peer (P2P) networks. IoT is a vision of an integrated network covering physical objects that are able to collect and exchange data. It allows previously unconnected devices and appliances to become connected through equipping devices with communication technology such as sensors and radio frequency identification tags (RFID). This paper introduces a study of business modeling of IoT using agent-based simulations in order to determine its adoption and life cycle. The paradigm of agent-based simulation is utilized to verify the effectiveness of the business model and simulate the behavior of the market. We concentrate in a predictive maintenance business model that uses IoT as the core of the business. The physical components of the systems are connected to sensors and RFID tags to collect data that is stored in a cloud-based system. The simulated time includes two years in order to see the potential of this business model and its feasibility.