Relationship Building in IoT Platform Models: the Case of the Danfoss Group

This paper investigates the implications for a manufacturer’s relationship building towards B2B customers and suppliers as a consequence of Internet-of-Things (IoT) platform models.
The paper identifies two ways of doing relationship building when it comes to IoT platform models. Relationship building can take place through a Classic Relationship IoT platform model (characterized by low complexity) or a New Relationship IoT platform model (characterized by high complexity). In both models, the manufacturer aims for high stickiness towards the customers. In the New Relationship model, however, low stickiness towards suppliers is aimed for in order to enable the manufacturer to orchestrate the stakeholder constellation dynamically. In addition, a driver for the low stickiness aim towards suppliers can be found in a motive to outsource risks to suppliers in IoT markets characterized by high degrees of turbulence and growth.