An Empirical Study of Standardisation, Open Architecture, and Profitability in an Internet of Things Business

Abstract

The objective of this research is to clarify the actual condition of a technological strategy in which a
company opens its technology and contributes to the construction of an industry standard for the Internet of Things (IoT)
industry, which at present is in the dawn or growth phase. In particular, it verifies the influence of the growth potential
and the profitability of a company on the industry aggregate. In preceding research in other industries, although opening
its own technology is not necessarily linked directly to a profit, it has been shown that it can contribute to long-term
profitability by a strategic effort. As an examination method, a questionnaire was conducted among companies that have
entered the IoT industry. As a result of this research, it also became clear that, in the IoT industry, prior investment
in standardization can contribute indirectly to long-term revenue. In addition, the necessity for a strategic shift in the
business model was observed.