Strategy Development of SMEs in the Internet of Things era : Case Study on Chinese Enterprises

Abstract: Internet of Things (IOT) has become the key theme of the world since 2009 and been considered as the third wave in the information industry after the waves of Computer, Internet and Mobile Radio Communication. It is expected to have a strong influence on small and medium companies (SMEs). However, little research on what and how the influence of IOT on the SME’s development can be found in the literature. The purpose of the thesis is to examine how IOT influences the organizational changes in SMEs. Finally, suggestions for strategy developments will be proposed to assist the SMEs in making their organization changes successfully. Two main models are applied for this part: change model (OD model) and business model. Moreover, the SWOT theory is adopted to identify the SMEs position in IOT era. We collect the primary data through launching the survey on internet. After data documentation, we apply “Approximation of the Probability Hypothesis Testing” Method to conduct data analysis. After researching, we found out the IOT brings “revolution” change to the Logistics of SMEs while only “adapting” change for Manufactures’ business development. Compare to logistic industry, the manufacturing SMEs seldom adopts IT technologies for their selling channel because they are lacking of resources and knowledge for the new technologies. We suggest the logistic SMEs should establish logistic network between the logistic companies to enhance information and resource integration. For the manufacturing SMEs should apply knowledge management and change the companies into learning organizations. In future, IOT will bring radical changes for manufacturers, which are the biggest area with application of IOT technology. Nevertheless, the logistics industry might go out of fashion. In other words, logistics industry may die out or change to other functions.