A new bee in the hive: integrating an IoT platform into a multi-business model organization

Responding to the urgent need to balance economic performance and environmental, social and governance sustainability, manufacturers are developing new business models that create value through services in addition to their manufacturing activities. This often results in the development of multiple business models within the organization. However, managing multiple business models, especially integrating a new business model into an established organization, is challenging. This study brings together the fragmented discussions of what the challenges are in the business model innovation literature and reveals the underlying causes of the challenges by drawing on organizational boundary theory. This study investigates a representative case, Jianpan Group who integrated a service-oriented IoT platform with its manufacturing-centred business model, which generates valuable insights into the nature of challenges in managing business model portfolios. The managerial practices provide actionable guidance for manufacturers to create synergy and interdependencies across their business models.