Evaluating the innovation of the Internet of Things

Abstract

Purpose-The Internet of Things (IoT) represents the network connection of people, processes, data and things. Due to the relevant position that this intelligent infrastructure is acquiring, the purpose of this paper is to investigate the effects of IoT on the companies' value, with specific reference to the intellectual capital value. Design/methodology/approach-The methodology is based on a single case study approach with an empirical analysis which aims to analyse whether and how the introduction of the IoT' innovations influences the value of the intellectual capital owned by a company. The evaluation method used for the empirical analysis is the Economic Value Added. The application is carried out on the company "Cisco Systems Inc." by analysing the company's financial reports covering the period 2007-2014. Findings-The paper demonstrates the impact of the innovation of IoT on intellectual capital owned by a high intensity cognitive company by determining its economic value. The results demonstrate that the introduction of projects involving the use of the IoT has increased the value of intellectual capital over the years. Originality/value-As the IoT can guarantee efficiency, social and individual benefits, the effects of the IoT on company performance and, particularly, on intangible corporate dimensions are analysed. Hence, the paper is directed to fill the literature gap on the analysis and evaluation of the IoT' impact on intellectual capital owned by high intensity cognitive companies. The research proposes strategic advice for decision making of companies interested in new technology investments.

Research streams on digital transformation from a holistic business perspective: a systematic literature review and citation network analysis

“…Fowler (2000) and Weber et al (2001) on the one hand focus more on use cases that involve AI and how it can "contribute to knowledge management solutions" (Weber et al 2001, p. 17). On the other hand, Murray et al (2016)as well as Uden and He (2017) take a look at IoT devices and how they can enhance knowledge management systems because of the data that are automatically generated. A strict theoretical view can be found with Rothberg and Erickson (2017), who mean to bring together the existing theory from knowledge management, competitive intelligence and BD analytics.…”

Exploring the Determinants of IoT Adoption: Findings from a Systematic Literature Review

“…IoT is defined as a network of intelligent heterogeneous physical devices or objects that contain embedded technology and are seamlessly interconnected [2,43]. These devices are augmented with sensing, computing, and communication capabilities, enabling them to communicate and sense or interact with their internal states or external environments [14].…”

“…Enhanced organizational efficiencies: Operating efficiencies enabled by IoT can result from improved systems and procedures [40], such as the use of proximity or sensor triggers that can automatically initiate an activity [26]. IoT-enabled redesign and streamlining or automation of business processes can minimize the intervention required by humans [26] or improve coordination between people, products, and procedures [24], and result in greater business agility [52,77], and procedural innovation [43]. Operating efficiencies can materialize in the form of improved transaction speed and accuracy [43], reduced labor, transaction, and process failure costs [24,53], reduced waste [10,23], improved energy efficiency [77], and supply chain responsiveness [71].…”

“…Enhanced organizational productivity: Through the effective coordination of IoT devices, systems can be harnessed to increase organizational productivity [13,61]. This includes, for example, improved value chain productivity across product design, inventory management, manufacturing, logistics, and customer service [22,43,77]. Similarly, employee productivity can be enhanced, with the organization leveraging its employees' skills to their full potential [24,40], and over time increasing the value of intellectual capital [43].…”

Internet of Things and Their Coming Perspectives: A Real Options Approach

“…Thus, the investment in IoT is relevant in the banking sector because customers and investors require real-time information about the trend of the expected cash flow compared to the expected consumption and the security of their investment. Likewise, Murray et al consider that IoT has an essential impact on the value of companies which show that the introduction of projects involving the use of IoT can increase the value of intellectual capital with time [38].…”