A Novel Business Model for a Cyber-Physical System(CPS)-Based Smart Irrigation Network


1 Ph.D. student in the Graduate School of Management and Economy, Sharif University of Technology

2 Professor in the Graduate School of Management and Economy, Sharif University of Technology

3 Associate Professor in the Department of Electrical Engineering, Sharif University of Technology


Industry4.0 plays a significant role in the strategy-making to take the opportunities of digital transformation of all stages of the production and the service systems in water management. This paper examines how the digital technologies and cyber physical systems facilitate business model innovations in smart irrigation networks. We choose the smart irrigation network as the case study; because the smart irrigation network is the first instance of a cyber-physical system in practice for water management. That is, a successful instance of the digital transformation in water management. We determine the components and the building blocks of the business model of the smart irrigation network. The Industrial Internet of Things (IIoT) business model of the smart irrigation network that we propose in this paper focuses on creating new markets, new services/product/platform and the enhancement of the efficiency of transaction. This framework is developed from bottom-up approach practical case study and top-down from the theoretical perspective of business model and the digital transformation of smart irrigation network. The finding of this paper shows that the value proposition of smart irrigation network for the customers ranges from shorter order, near to demand supply, equity in irrigation water allocation between all customers including upstream and downstream, better planning and water allocation to extracting extra fresh water for the restoration of wetlands and urban usage.