TRENDS AND CHALLENGES OF BUSINESS MODELS IN THE ERA OF INTERNET OF THINGS: COMPARISON BETWEEN WESTERN AND EASTERN EUROPE

Information technology has massively transformed the world of business over the past fifty years - first individual functional areas within companies ("first wave"), later increasingly also cross-divisional value-added processes and trade ("second wave"). With the Internet of Things (IoT), the "third digital wave" is currently rolling up. The IoT is a driver for digitization. By analyzing machine data, the use of sensors and the intelligent real-time processing of huge amounts of data in the cloud, new business models are created. With the information gained, companies are able to improve their value chain. However, one of the most difficult issues in this context for many companies is how they can further develop their existing business model or establish successful new business models that will be based on new technologies and IoT. To investigate resulting impacts, we draw on the existing business models and deduct specifics for the Internet of Things. Building on this, in order to reach the aims of the paper the authors will use a descriptive research method (a case study) and qualitative research method (face-to-face interviews). The data gained will be analyzed to understand what digital business model components are, listing the main benefit of companies that implement IoT and to compare the growth of a company in Western Europe with one Eastern Europe.