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IoT Enabled Process Innovation: Exploring Sensor-Based Digital Service

Design Through an Information Requirements Framework

Conference Paper · March 2019

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 IoT Enabled Process Innovation: Exploring
Sensor-Based Digital Service Design Through
an Information Requirements Framework

Niclas Carlén, August Forsman , Jesper Svensson(&) ,

and Johan Sandberg

Department of Informatics, Umeå University, 901 87 Umeå, Sweden

{niclas.carlen,august.forsman,jesper.svensson,
johan.sandberg}@umu.se

Abstract. Through digitisation of physical artefacts and environments, the

Internet of Things carries vast potential for process innovation. However, nav-
igation of the quickly evolving technological landscape and identification of
emerging opportunities for value creation remains challenging. To this end, we
combine existing frameworks on information requirements, IT capability, and
business value of IT. We evaluate the usability of these frameworks for IoT
enabled innovation in our analysis of two sensor-based process innovation
projects. We investigate the fit between process characteristics and technological
functionality, and the implications of this alignment. Our analysis demonstrates
that the framework provides a practically useful and theoretically coherent
conceptual device for analyzing process characteristics and digital options to
innovate processes. Furthermore, we find that IoT sensors are well suited to
address connectivity and uncertainty requirements. However, in order to
leverage them to address high equivocality requirements designers need deep
contextual understanding to align IoT capability with information requirements.

Keywords: Process innovation
Internet of Things
Information requirements

1 Introduction

The ongoing pervasive digitisation of physical artefacts and environments, often col-
lectively referred to as the Internet of Things (IoT), signifies a new paradigm in data
processing and communication. It is not a new technology per se, Wortmann and
Flüchter (2015) describes IoT as “a global infrastructure for the Information Society,
enabling advanced services by interconnecting (physical and virtual) things based on,
existing and evolving, interoperable information and communication technologies”.
IoT has evolved into an ecosystem of possible objects or things to connect to the
internet where basically anything that has an on and off switch can be connected e.g.
sensors. Combined with an expected battery life of several decades for many sensors
allows for data collection around the clock. Sensors like this are making headway
around the world with the emergence of smart cities, i.e. cities that are connected and
efficient collecting data to manage its resources and serve its citizens in the best way

© The Author(s) 2019

L. Strous and V. G. Cerf (Eds.): IFIPIoT 2018, IFIP AICT 548, pp. 105–120, 2019.
https://doi.org/10.1007/978-3-030-15651-0_10
106 N. Carlén et al.

possible (Sundmaeker et al. 2010). The global market for IoT is growing tremendously,
resulting in significant market opportunities and an expected turnover at around 8.9
trillion dollars combined with an estimated 26–100 billion connected devices by the
year 2020 (Statista 2017). Currently, there are significant uncertainties when companies
engage in IoT; lack of standards, low understanding of technology and security issues
are all sizeable problems hindering development (Forbes Insight 2017). Most com-
panies feel uncertain which IoT-solution will collect the data they need, this results in a
discrepancy in what companies need and what they get with regards to data and
information (Forbes Insight 2017). In this paper, we argue that this uncertainty can be
mitigated by synthesising two theoretical frameworks combining both analysis of
information requirements and corresponding digital options with effects on processes
by different IoT implementations.
We have been involved extensively in two IoT-projects and have seen issues
regarding information requirements and process analysis arise throughout both. Both
cases illustrate the need to understand the working environment and the technology at
hand. While most studies thus far have focused either on the technical or business side
of IoT (Forbes Insight 2017), we argue that there is a need to understand both aspects to
generate successful outcomes. Since in most cases there is going to be humans inter-
acting with the technology in their daily work life, we also argue that it is of great
importance to understand the duality of technology and social activity. We have,
therefore, focused on a micro-level perspective by investigating how IoT-systems affect
work practices. This paper seeks to examine the effects of implementing sensor-based
systems in organisations, i.e. how the implementation effects the process and value
chain. This study will be limited to two separate case studies where sensor-based
systems have been both designed and implemented in the organisations. Specifically,
we explore the following research question:
How can IoT sensors be used for digital service design to innovate processes?

2 Internet of Things in Business Processes

With the emergence of ICT in the 20th century a lot of IT projects have had lacklustre
results, one reason is the assumption that technological functionality solves organisa-
tional issues (Alter 2006). The argument against this is that an IT system should be
viewed as a resource for the solution and not the solution itself (Alter 2006; Meyer
et al. 2013). IoT is also argued to have a decentralising effect on the value chain in
business as parts of it become connected. As the value chain becomes decentralised the
decision-making rights are moved to the individual components in the chain, and the
different parts become more independent, arguably creating a more efficient and
streamlined process chain throughout (Haller et al. 2008). We would add to the current
research by enacting these principles in real-world implementations. Doing so with the
intention of showing real-world scenarios with the technology in place, we argue that
the current body of research will benefit by the holistic perspective applied in this
study.
 IoT Enabled Process Innovation 107

2.1 A Framework for Analysing Process Effects with IoT and IoT
Capability
In this paper, we synthesise two different theoretical frameworks. The first is a
framework developed to identify what digital options are available to organisations and
what information requirements different processes have (Sandberg et al. 2014). The
second framework is intended to measure the effects of the chosen solution on the
process (Mooney 1995). By synthesising we refer to using the frameworks in tandem,
iteratively, throughout the process analysis, implementation and evaluation of the
systems. This in turn contributes to the body of research with a practical framework
encompassing the entire process of implementing IoT in an organisation with intent to
innovate business processes.
Information Requirements
Information requirements are used to identify what digital options there are for a
specific business process. Digital options should here be understood as opportunities
for leveraging IT in process innovation. The conceptualisation is grounded in earlier
research, but Sandberg et al. (2014) further develop the concept of a specific tasks
requirements about uncertainty and equivocality by adding connectivity to modernise
the theory. We extend existing applications of the framework by using the information
requirements in an IoT context. Establishing information requirements for each case is
the first step of the innovative work process to map if and how IoT can support or
transform a business process. This analysis, enables generation of the digital options
available to organisations. To identify information requirements there are three aspects
to consider and analyse: connectivity, uncertainty and equivocality.
Connectivity relates to the informational dependencies between processes and
systems within an organisation, i.e. the need for information sharing across boundaries
in an organisation (Malhotra et al. 2005). If the connectivity need is regarded as high,
the focus for managers should be to counteract technical or social barriers by increasing
information reach, characterised as “the number information sources that can be
accessed during task execution” (Sandberg et al. 2014, p. 428). If information can be
accessed across organisational and geographical boundaries, process information
requirements have low connectivity requirements. When the connectivity need is low,
it can be relevant to increase richness which refers to “the number of data points
available regarding a given object during task execution” (Sandberg et al. 2014,
p. 428).
Uncertainty refers to the availability and accuracy of information needed for actors
to execute their task within an organisation. Uncertainty requirements can be addressed
by continually balancing information production and information consumption
(Ramaprasad and Rai 1996). Information production occurs when actors generate new
information based on stimuli in the process and its environment. Information con-
sumption turns the existing and available information into business process actions. If
the information requirements are high in uncertainty, i.e. the current information is
inaccurate, unreliable or insufficient, organisations should aim to increase production of
information as they should not want to consume unreliable information. When
uncertainty requirements are low, organisations can instead focus on consumption of
108 N. Carlén et al.

information. If the information is reliable, available options for consumption emerge

which can drive an organisation to make better data-driven decisions.
Equivocality refer to confusion and lack of mutual understanding when executing
a task, or the level of complexity and ambiguity in the tasks information processing
(Sandberg et al. 2014) (Mathiassen and Sørensen 2008). When a task is to be executed,
there may be a need for mutual understanding between actors or processes, as they may
have to rely on contextual knowledge. Conversely, there can be situations where actors
or processes can rely on their codified knowledge and routines. If information
requirements are high in equivocality, then the situation or task context is unknown for
the involved parties. A relationship enables success in these situations; there needs to
be a high level of understanding and trust within the system and in the systems
supporting situational knowledge and contexts. If the requirements are low, however,
then the characteristics are based on encounters where standardised protocols and
workflows are utilised.

Table 1. Information requirements and digital options characteristic (Adapted from Sandberg
et al. 2014)
Information Corresponding digital option Example of IoT capability
requirement characteristic investment
Connectivity High Reach: the number of Open data sharing of sensor
information sources that can be data between organisational
accessed through IoT during departments, generating easy
task execution access to new information
Low Richness: the number of data Flow sensors generating exact
points available through IoT measurements of waste flow in
about a given object during task a waste management facility
execution
Uncertainty High Production: the extent to which Multiple sensor measuring soil
IoT supports the creation of and crop health in modern
information from stimuli agriculture
Low Consumption: the extent to Heatmaps showing movement
which IoT support translation of patterns of visitors in a public
information into action taken building
Equivocality High Relationship: extent to which Correct analysis of contextual
IoT supports contextual environment with the
consideration and development implementation of sensors that
of trust by adaptation and measure the exact values
sharing of information across needed for the task
subsequent episodes
Low Encounter: IoT based on a Photoelectric sensors measuring
standardised approach without visitors entering and leaving a
variation across customers; facility from a permanently
limited regarding time and fixed position
flexibility but efficient due to
uniformity
 IoT Enabled Process Innovation 109

IoT Capabilities in Organisations

Sandberg et al. (2014) refer to the organisation’s IT capabilities as a firm’s previous
investments in IT resources, such as technology or IT competence. We use the concept
and expand upon it to fit the field of IoT and thereby refer to them as IoT capabilities.
Table 1 shows both information requirements, their corresponding digital options and
examples of IoT capabilities that reflect the requirement characteristic.

2.2 Measuring Effects of IoT on Processes

We draw on Mooney’s (1995) framework for assessing the business value of IT.
Business performance is best measured from the performance of its processes (Ray
et al. 2004; Mooney 1995). Sensors collect a limited range of data in an environment
which in turn supports business processes. Therefore, we conclude that examining
sensor implementation impact is most efficiently done in the context of the processes
which they intend to support. In this study, we analyse the automational, transforma-
tional and informational effects of the IT-systems designed for each case, which are
classifications derived from Mooney’s process-oriented framework and have been used
in similar studies (Stenmark and Jadaan 2010; Visich et al. 2009).
The automational dimension relates to how sensors data collection can substitute
manual labour. Different kind of sensors can continuously collect data which are to
support or initiate processes. Automational effects on business value are gained through
aspects such as improved customer service, increased productivity and a more efficient
labour distribution (Stenmark and Jadaan 2010; Visich et al. 2009).
Informational effects are those that are caused by IT-enabled collection, storage,
processing and spread of information acquired from the sensors. Case studies of RFID
implementations have shown that business value can arise from improved resource
management and reduced manual labour (Stenmark and Jadaan 2010; Visich et al.
2009).
The transformational dimension affects and supports process innovation and
transformation. Sensor data may support and improve existing processes but may also
be utilised for business innovation. Data acquired to support a specific process chain
can be used in combination with other aspects of the organisations’ knowledge base to
innovate the business (Stenmark and Jadaan 2010).

3 Methodology

For this paper we conducted a multiple case study consisting of two cases where
sensor-based IoT-systems, through collection and visualisation of data, were designed
and implemented to support different process chains. Case studies are a preferred
strategy when research questions related to “how” and “why” are posed (Yin 2003),
and multiple case-studies when the logic of the study is to “produce contrasting results
but for predictable reasons” (Yin 2003, p. 47). We argue that this makes a case-study
approach viable with regards to the framing and research question stated earlier. By
evaluating this innovation process through multiple cases, we intend to generate
general findings and propose practices which could be built upon in further research.
110 N. Carlén et al.

We chose the cases based on an analysis of two different research sites. The classifi-
cation for inclusion was that the case should present one or several concrete problems
in a process chain where sensor-based technology could be a solution. These problems
could either be a lack of ability in performing activities which could be enabled by the
technology or addressing problems currently present in an organisation.
A process is “a structured, measured set of activities designed to produce a spec-
ified output for a particular customer or market” (Davenport 1993, p. 5) and can be
classified into two different categories; operational processes and management pro-
cesses (Mooney 1995). Operational processes are the set of activities an organisation
performs to produce something that generates value and is referred to as an organi-
sation’s primary activities. Management processes are related to streamlining and
improving the efficiency of an organisation’s primary set of activities such as coordi-
nating and handling different information. Process innovation in this context refers to
the practice of analysing an organisation’s processes and redesigning them using
innovative technology to improve performance and support the processes (Davenport
1993). In this case, that innovative technology is LoRa-sensors, which enables remote
monitoring and control of different aspects of a process, and the IT-artefacts of the
software designed to visualise or manipulate the data generated by the sensors. Each
case process chain was broken down into sub-processes depending on what type of
activities and the complexity of the tasks performed. We then mounted sensors at each
research site to collect data and designed IT-artefacts with the purpose of solving
specific problems related to the sub-process. The effectiveness of these systems was
analysed in the context of what type of value and effects the data generated when
innovating operational and management processes.

3.1 Research Sites and Sensor Technology

The sensors used in the project are based on LoRa technology, and a specific type of
gateway delivers connectivity to the sensors. Because of lacking infrastructure in the
northern municipality, we were tasked to mount two base-stations; this implementation
took place in September 2017. One of these base-stations was installed on the highest
point in the town, which is a water tower, the other one on the roof of the local
secondary school. We also installed a base-station in the city where the cleaning
company project took place to further the existing coverage. The base-stations have
guaranteed coverage of a 3 km radius, however, depending on disruption and quality of
air it may be greater than that (LoRa-alliance 2015).
LoRa stands for Long Range and is the physical layer utilised to create long-range
communication links. LoRa is based on chirp spread spectrum modulation, using its
entire spectrum of bandwidth and is therefore very resistant to channel noise. LoR-
aWAN is based on Low Power, Wide-Area Networks i.e. LPWAN, and defines the
communication protocol and system architecture for the network. LoRaWAN has a
great influence on battery times for nodes, network capacity and security. LoRaWAN is
explicitly designed for sensors and applications that need to send small amounts of data
over long distances at different time intervals, making it ideal for IoT sensors appli-
cations. As IoT is still a new phenomenon and standards are currently lacking, other
technologies are competing to become the business standard. In likeness with LoRa,
 IoT Enabled Process Innovation 111

several LPWAN networks are emerging as competitors; examples are Sigfox and
Narrowband IoT that operate similarly (LoRa-alliance 2015).
In this study, we have used two different types of LoRa-sensors that measure
different values while having some similar readings; temperature inside the casing,
humidity at the sensor and battery-level (Table 2).

Table 2. LoRa Sensors utilised in projects with corresponding properties

Sensor Properties
name
ERS Passive infrared (PIR) sensor registering movement in its field of view
ELT-1 Analogue input sensor capable of coupling with external analogue
measurement tools, e.g. thermometer, voltmeter, ultrasonic level indicator

3.2 Data Collection and Analysis

The data collection process consisted of an analytical phase where we in conjunction
with each organisation collected data regarding the problem background of their pro-
cess chains. An implementation phase studying the physical environment of the
research site, collected data relevant to the practical implementation of the system, and
an evaluation phase where the data related to the results of the system was collected.
All interviews conducted are semi-structured and were conducted throughout all three
phases to capture viewpoints from the participants on both current problematic aspects,
initial impressions of the implemented system, and impressions regarding its effects.
Observations refer to activities where we have studied staff members performing the
process chains, as well as documenting areas of interest. This was performed mainly
during the analytical phase in order discover details relevant to mapping the process
chains and capture insights possibly missed using the other methods. Workshops are
meetings where we collected data related to our subsequent design choices and was
mainly conducted in the analytical phase with participants in each innovation project.
Informal encounters are the interactions with the organisation where we have per-
formed different tasks or exchanged minor pieces of information related to the projects,
a method which was applied throughout all three phases.
A total of 9 interviews, 11 observations, 7 workshops and 46 informal encounters
were conducted, spanning all three cases in the study during a time frame spanning
from 20th September 2017 to the 29th of Mars 2018 (Table 3).

Table 3. Data collection overview

Case Interviews Observations Workshops Informal encounters
Swimming pool 4 5 2 7
Cleaning company 5 6 5 39
112 N. Carlén et al.

The data analysis was performed in iterations together with the organisation
throughout the time-frame of the data collection, where the input in the analytical phase
formed the basis for our description of the information requirements and IT-capabilities
in each case. The results of the evaluation period (testing the systems in practice)
formed the input for the process effects each system had on the corresponding process
chain it supported.

4 Results

This section consists of the results of our research, each case will be presented with a
description of the research site, problem background and information requirements of
the process chains, with a subsequent description of practical implementation and
effects from each case.

4.1 Swimming Pool

Research Site
The research site of the public swimming pool-case is in a municipality in the north of
Sweden and is run by a small organisation of six people who maintain the pool, a gym
and a gymnasium in the same building. The public pool is a facility open during
weekdays and Saturdays on regular weeks.
Process Chains and Problem Backgrounds
The organisation lacks data on the number of visitors and which hours and days during
the week generate most activity. The main areas of activity which the organisation
found interesting were the entrance to estimate the overall number of customers, the
cafeteria to investigate the air quality during peak hours, and the locker rooms to
investigate differences in attendance between the genders. This data is interesting for
the organisation when optimising staffing and air quality, and to create an overview of
when and how much the facilities are used during the week. To achieve these infor-
mational effects, the sensor implementation sought to address the high uncertainty and
low connectivity information requirements through continuous collection of visitor
data. Further, the information regarding the number of visitors is non-equivocal as the
collected data is readily interpreted in the context.
The second process chain in the case is optimising heating of the swimming pool.
According to the person responsible for this routine, the pools are heated to 32 °C
every week during Tuesday nights, and then the temperature falls successively to
around 27 °C during the weekly cycle. This practice leads to uncertainty amongst the
customers on the current temperature and generates phone calls to the organisation
increasing the workload. Further, the facilities have shown signs of increased wear in
forms of mould and moisture damage due to the increased evaporation generated by
higher temperatures. The organisation seeks informational effects on the managerial
level through an increased amount of temperature data points and implementing sen-
sors to address the connectivity and uncertainty requirements. The equivocal require-
ments were low as temperature data is readily understood in the context.
 IoT Enabled Process Innovation 113

The third process chosen for this case is the documentation of pool water quality,
which is a process chain performed by the staff daily to discover anomalies and
potential health risks related to the pool water. Water samples are collected, analysed
and documented as the first task of every day: water temperature, pH-value and
chlorine-levels. To collect this data, the staff places a thermometer in the pool water
where it is submerged for 15 min. During this time, they gather two water samples
which are analysed using a pool water quality kit establishing its pH-value and amount
of chlorine. This data is then documented manually in a binder and stored in the staff
office of the facilities. Due to the repetitive manner of the data collection and docu-
mentation, the organisation seeks to explore to what extent it could be automated using
IoT sensors. To achieve these effects, automatic production of information regarding
temperature, pH-value and chlorine levels is required, which characterises an infor-
mation requirement high in uncertainty. We found the connectivity and equivocality
requirements to be low as the information is to be utilised within task entity boundaries
and well understood in the context.
Implementation
To support the first process chain, we mounted four sensors at areas for which the
organisation had expressed interest. The main units of observation these sensors were
to measure were motion activity and temperature in each respective area. The sensors
were placed at the entrance of each respective area at the height of around 150 cm’s
ensuring measurements of every individual passing.
This motion activity and temperature-data is uploaded every 30 min to a database,
imported into tables and transformed into graphs, both real-time and historical. The
information was made accessible to the organisation through a web application where it
could be studied and form part of the basis for process innovation. The implemented
system has the characteristics referring to the production of information to address
uncertainty requirements. As this process aims to collect information about motion and
temperature in the facility we argued that the four sensors would address the uncer-
tainty requirements.
To support the second chain, we mounted one temperature sensor in the bottom of
the swimming pool, hidden behind a ladder. This sensor uploaded water temperature
every 30 min to a database and was imported into tables and graphs made available to
the organisation. The historical data generated by the sensor can be utilised to measure
how much time it takes to heat the pool to the preferred temperature and get a more
detailed overview of its heating cycle. This data could serve as a basis for innovating
the heating process chain and minimise the problems of their current practices. The
third process chain utilised the same temperature sensor as the second as the only
relevant unit in the process chain collected and documented is the temperature data.
This data was then uploaded every 30 min and presented in the form of tables and
graphs. For this process, we addressed the information requirements with the intent to
increase richness by collecting data with the sensor as well as produce more infor-
mation to lower uncertainty.
Effects
The first process chain showed primarily informational effects. The data collected from
the motion sensors generated an estimate of which areas has the most activity, and
114 N. Carlén et al.

during which hours can be established by studying the graphs in the web application.
The organisation had ideas of using the data to optimise the air conditioning. However,
the functional capabilities of adjusting the air conditioner cycles to reflect usage or be
automated by the data seemed to be limited which was uncovered later in the project
when this issue was discussed with a janitor responsible for the air conditioning.
A side-effect of studying the comprehensive dataset was the discovery that the tem-
perature in the cafeteria rises around 2–3 °C during the nights when the facility is
closed. This occurrence was unknown to the organisation when they were informed of
it, and according to one of the staff members, may be related to the underfloor heating
being active during the night time when the ventilation is inactive.
The effects on the second process chain had informational effects. The historical
data generates a clear and consistent timeframe over how long it takes for the swim-
ming pool to reach its intended temperature and shows some anomalies. An example is
the re-warming of the pool, which usually happens around 4 h after it has reached its
maximum temperature. Why this happens is unknown to us right now but will be of
interest in further evaluation of the system. The third process chain has potential to be
completely automated, generating both automational and transformational effects, but
since the sensors automate only 1/3 of the data collection, the staff must still perform a
majority of the process chain in the same manner as before. A future update of the
system will be to implement sensors collecting data of the chlorine level and pH-value.
With a complete system in place, the whole process will be performed continuously
and automatically document the data in the same way as current practice. The per-
manent character enables transformational possibilities in the sense that with a system
documenting the water quality continuously, anomalies in the water can be discovered
faster.

4.2 Cleaning Company

Research Site
The research site for the case of the cleaning company is located in a university
building. The organisation is responsible for cleaning all facilities and have a staff of
six managing and executing this task at the research site.
Process Chains and Problem Backgrounds
The staff have expressed a problem of prioritising which order that classrooms are
cleaned after the weekend in an effort to work more condition-based. The current
situation is such that the activity in the classrooms during the weekends is unknown to
the staff when they begin cleaning on Mondays, and they clean each room in a set
routine. The consequence of cleaning in a routine-based manner could result in rooms
with less cleaning needs getting cleaned, and rooms with higher cleaning need left
unattended. The cleaning process of each room constitutes four sub-processes: cleaning
the floor, cleaning the tables, wiping the whiteboard and emptying the waste bin, and
the cleaning need of each sub-process in combination is what constitute the cleaning
need of the classroom. The organisation seeks informational effects through collection
of information regarding classroom cleaning need. This information requirement has
the characteristics of high equivocality, as assessing cleaning need is non-algorithmic
 IoT Enabled Process Innovation 115

and is based on situated knowledge about the specific context. The process chain has
high connectivity and both high and low uncertainty requirements as cleaning need
information must be collected and accessed remotely. Since the organisation currently
lacks data on the activity in the classrooms during the weekends, it cannot innovate its
processes in such a way that it aligns with the ambition of working more condition-
based.
The second process chain presented as problematic by the organisation is assessing
if a room is vacant. In the current situation, the staff do not clean rooms which are
occupied and wait until the rooms are vacant to clean them. This problem means in
practice that they sometimes spend time visiting rooms only to discover that they
cannot be cleaned, and delay that process until later, having wasted time moving to the
classroom. The organisation seeks informational effects on the operational level
through remote access to information with regards to classroom vacancy. To achieve
these effects, vacancy information need to be produced and remotely accessible to
cleaning staff, which characterises the information requirements as high in connectivity
and uncertainty. Lastly, information regarding classroom vacancy is non-equivocal as
the room is either vacant or not.
The third process chain is the comparison between the presumed usage based on the
booking schedule and actual usage of the specific classrooms. According to the
organisation, it is not uncommon for a room to be booked during the week, but its
actual usage is unclear. The staff can plan the cleaning of classrooms only to discover
that they have not been used and, therefore, not in need of cleaning. This could also be
used as a basis when negotiating terms with its currently largest customer which is the
university itself. Part of how many hours the company can bill the university is based
on the number of hours booked in the electronic booking schedule. The organisation
seeks informational effects on the managerial level through remote information col-
lection of classroom usage. High connectivity, high uncertainty, and low equivocality
characterises its information requirement. The multiple data collection points increase
reach and production of this non-equivocal information.
Implementation
To support the process chains described in the case we mounted sensors in classrooms
collecting motion data. The sensors were placed at the entrance around 170 cms from
the floor, registering every motion near the entrance door. This data was uploaded
every 10 min to a database. We then designed a web-application containing various
artefacts which utilise this data to address the information requirements in the process
chain. Due to the high connectivity requirements the purpose was to increase reach
through multiple data collection points. For the uncertainty requirements, there was a
need for both production and consumption to address the requirements relating to
uncertainty. The sensors installed addressed the information production aspect, and the
web application was developed to increase consumption of information. As the
equivocality requirements were high, the need for a relationship characteristic was of
high priority. Due to the organisation wanting to measure cleaning need in the rooms,
which is a highly equivocal measurement, the sensors and web application needed to be
utilised in conjunction with the cleaning staffs’ knowledge and routines.
116 N. Carlén et al.

The artefacts contained in the application display three sets of data; accumulated
motion in each room, a two colour-button signalling if motion has been detected the
last 10 min and historical data available for export in the form of graphs. The appli-
cation was made accessible for the cleaning staff in their day-to-day work by a tablet
placed on their cleaning cart.
The system was tested for three weeks, during which the staff had access and
utilised it when performing their tasks. Furthermore, they graded the experienced
cleaning need which was defined on a three-grade scale where one was clean, two was
normal and three related to a high cleaning need. Interviews with the staff were con-
ducted before, during and after the test period. During this period, we also tested the
hypothesis that an increased motion value from a classroom during the weekend rep-
resents a higher cleaning need. This hypothesis was tested by photographing every
aspect related to the sub-processes of the cleaning process chain after the weekends,
comparing the empirical findings with motion data captured by the sensors.
Effects
The implemented system had various effects on the organisation depending on which
process chain it supported, but how well it improves the general organisational per-
formance remains inconclusive and needs to be evaluated further. Although the system
generated the motion data we presumed when designing and implementing the system,
the usability of this data in the context of the first process chain, determining the
cleaning need of a specific classroom, is still unclear. The system was designed to have
mainly informational effects on the first process chain, by presenting information to the
staff which could be used to determine which classrooms that had a more significant
cleaning need. The empirical findings, however, related to the hypothesis that higher
motion value represents a higher cleaning need are vague. We believe that further
evaluation of the system is necessary to establish its effects.
The effects on the second process chain, which was to inform the staff if a class-
room is vacant and possible to clean, has mainly been of informational and automa-
tional character, with the intended ability successfully generated. According to the staff,
the system correctly identifies if a classroom is vacant or if there are students present,
which informs them in a way that improves their performance. Since they do not have
to spend time collecting this information manually, it has automated the process chain.
The long-term effects of having this ability, its possible flaws (no motion input if
students are very still) and how great of a value it brings to the organisation, due to it
solving a relatively minor problem, will have to be further evaluated.
The system has generated the desired ability to analyse and compare between the
booked hours in the electronic booking schedule and the actual amount of activity in
the classrooms, which would classify it as having a transformational effect on the
organisation’s ability to innovate. This ability may contribute to having informational
effects which improve performance, depending on how generated data is utilised. The
organisation has expressed an ambition to integrate the graphs, and sensor data with the
current electronic booking schedule to easier compare the data, but this feature has yet
to be implemented.
 IoT Enabled Process Innovation 117

5 Discussion

To provide actionable guidance for the use of IoT sensors to innovate processes through
digital service design, we have illustrated the applicability of a synthesised framework
facilitating opportunity recognition, design and analysis of effects. The analysis provides
insight both to the general applicability of the framework across the innovation process,
and the bearing of specific components of the framework for IoT sensors.
Although developed for different tasks, our application of the framework suggests
that it is beneficial to apply the whole chain of analysis in the different subparts of the
innovation process. While the business value of IT provides support for retrospective
analysis of effects (Stenmark and Jadaan 2010; Visich et al. 2009), the desired out-
comes in terms of informational, automational and transformational effects should
guide the design of the digital service system. Thus, in accordance with Alters (2006)
arguments regarding a holistic view in systems design, such ambitions need to be
considered in the initial analysis phase. By establishing information requirements for a
process chain or specific sub-processes during this phase, potential complexities related
to generating the desired effects can be discovered, e.g. processes with a high level of
equivocality. With a desirable effect-outcome and the information requirements nec-
essary for generating this outcome established, we argue that this provides a more well-
grounded basis for process innovation with sensors.
For sensor-based process innovation, the process information requirements in part
determine the degree of automational effect that can be achieved. A process with the
purpose of simply collecting or communicating one type of data may be automated in its
entirety through implementing a sensor-based system. Automational effects of this kind
are shown in the swimming pool case where the process chain of documenting pool water
quality has the potential of being automated completely by the utilisation of sensor-based
systems. This high degree of automational effects arises from alignment between infor-
mation needed to complete the task and sensor capacity to produce data output. This
outcome differs from a process with high equivocal information requirements, such as the
process of evaluating the cleaning need where there are four sub-processes to complete
the process chain. Each sub-process requires information with regards to its specific
cleaning need, and the sum of the informational output from these sub-processes are then
what constitutes the cleaning need of the classroom. The sensor used to support this
process chain provides information of movement around the entrance to the classroom.
This information of movement does not map precisely to any of the sub-process outputs
of assessing a cleaning need. For example, to assess if a whiteboard needs cleaning there
is a requirement of visual examination of the whiteboard and from this draw a conclusion
regarding its need for cleaning. Information of movement is only a proxy variable that
does not directly respond to use of the whiteboard. Similarly, to assess if the floor needs
mopping, information is required on the amount of dust and dirt that is currently present
on its surface. Again, the type of information provided by the sensor used does not
immediately support an assessment of mopping need.
The sensor-produced data may be used to make assumptions of cleaning need based
on the information of activity around the sensor, without showing a one to one rela-
tionship between the amount of movement and the equivocal cleaning need. For
118 N. Carlén et al.

instance, while movement information does not show how dusty or dirty the floor is, it
shows the cause of this effect: people have walked on the floor. Any value of activity
data means that the floor has been walked upon. If the floor has been walked upon, it is
reasonable to assume that some amount of dirt and dust have been transferred from the
shoes to the surface of the floor. Thus, a value of activity data increases the need of
mopping the floor.
This reasoning may be used on the other sub-processes of the cleaning case as well,
though with a weaker conclusion. We have argued that movement information show a
relationship with the degree of dirt on the floors. However, movement information is
not directly correlated with the use of whiteboards. Recorded activity data means that
there has been a person around the entrance of the classroom. It does, however, not
capture the type of activity the person has engaged in, e.g. if they used the whiteboards.
Similarly, the data does not show if the person(s) moving close to the classroom
entrance also throw waste into the waste bin. The IoT sensor capabilities do not address
these equivocal information requirements directly. Thus, conclusions regarding the
cleaning need of these processes cannot be drawn solely from the information provided
by the sensor. Movement information may, however, be used in conjunction with
visual evaluation of the state of classrooms over time to show statistical probabilities of
whiteboard cleaning need, waste bin level and table dirt. Cleaning staff collected this
data during the testing phase of the cleaning case by grading the classrooms total
cleaning need in conjunction with them cleaning it. This method of evaluation could be
improved by splitting it into an evaluation of each sub-process, thus increasing its
accuracy. There are degrees to this relationship between process information require-
ments and sensor data output. This relationship spans from misaligned, exemplified by
assessing cleaning need of whiteboards with movement sensors, to aligned, as shown
by addressing temperature requirements with a temperature sensor. Thus, we argue that
IoT sensors could be implemented to processes with various degrees of success
depending on the process equivocality information requirements (Table 4).

Table 4. General descriptions of IoT capabilities addressing information requirements.

High connectivity IoT-sensors by nature increases reach due to many individual data
Reach collection points that are accessible over organisational borders
High uncertainty IoT-sensors can continuously produce data outside human intervention,
Production day as night
High equivocality IoT-sensors can supply relations, however, important to match sensor
Relation capabilities with the process information requirements
Low connectivity IoT-sensors add richness and granularity due to continuous, focused data
Richness collection
Low uncertainty IoT-sensors do not directly address consumption, but through data-
Consumption analysis and visualisation of sensor-data consumption can be addressed
Low equivocality IoT-sensors can fortify encounters through stabile data collection that
Encounter supports codified knowledge and routine-based tasks
 IoT Enabled Process Innovation 119

6 Conclusion

In this paper, we provide a synthesised framework for IoT sensor-based process

innovation. The framework draws on extant theory on (1) the role of information
requirements analysis in identification of IT-based process innovation opportunities
and (2) effects on business value. The synthetisation of these theoretical devices
enables a holistic analysis, from opportunity recognition to evaluation of achieved
effects. We have explored the practical usability of the framework through an analysis
of two different implementations of IoT systems and associated organisational effects.
We found areas where the sensors have shown potential for process innovation and
demonstrated the applicability of an information requirements perspective in an IoT
context. Through this we have been able to identify areas where complexity becomes
an issue for implementation of IoT systems. In particular, the results point to IoT
sensors general capacity for responding to high connectivity and uncertainty require-
ments, and the need for aligning functionality with organisational needs to respond to
high equivocality requirements. Thus, the functionality provided by IoT sensors does
not reduce the importance of organisational ability for process analysis and identifi-
cation of values to measure. We also identify the effects and relate them to levels of
alignment between information requirements in the process and sensor capacity. Lastly,
we have argued for a need to understand IoT through a micro-level perspective in
organisational processes and proposed a set of practices for overcoming challenges
encountered in the cases. As the field continues to grow we believe it is essential for
organisations to further understand how to utilise IoT-technology when innovating
their work processes.

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