480 / 2024-04-25 16:22:35

Have Their Cake and Eat It Too: Impacts of IoT Technology on Competition and Collaboration in Enterprises

Internet of Things (IoT),Quality competition

Enterprises utilize sensors and other interconnected devices based on Internet of Things (IoT) technology to establish an ecosystem platform. This disruptive technology provides consumers with more convenient product experiences and brings significant opportunities and challenges to original design manufacturers (ODMs) and IoT platform companies. This study employs a game theory model to investigate the electronic commerce environment, wherein a IoT platform company provides IoT infrastructure, while ODM and IoT platform company offer consumers functional product with varying quality. We have conducted analysis and solution of the model, leading to some interesting findings. We found that functional products provided by IoT platform company and ODMs may both be purchased by consumers who have not purchased basic IoT services. As long as there are enough IoT-sensitive consumers, ODM can leverage the IoT infrastructure provided by IoT platform company to enhance product competitiveness. Meanwhile, IoT platform company, in order to encourage ODMs participation, may refrain from offering their own functional product. Interestingly, for ODM, utilizing the IoT infrastructure provided by IoT platform company to enhance product competitiveness benefits developers. At this point, IoT platform company also opt for a "have their cake and eat it too" approach. Only when there is a significant difference in functional products will ODM choose not to join the IoT core services. Therefore, despite the extensive media and governmental attention received by IoT technology in recent years, the progress of IoT technology may not necessarily bring innovation to traditional manufacturing enterprises. Our research findings hold significant implications for existing IoT platform companies and traditional manufacturing designers.