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Internet of Things (IoT) is gaining much attention from practitioners and academia and serves as a business mean to increase efficiency and improve business processes. Since small and medium-sized enterprises (SMEs) play an important role in the market’s value creation, it is particularly important to understand key aspects of IoT-based business model transformations in SMEs. However, the existing literature on IoT-based business models mainly focused on transformations in large companies. Therefore, this paper aims to identify the preconditions of adopting IoT in SMEs and possible resulting business model transformations. A systematic literature review was chosen as the main research method for this paper. Results of the analysis were summarized as the preconditions for IoT-based business model transformations using Osterwalder & Pigneur‘s Business Model Canvas concept as a basis.
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