Every day, more and more devices are getting connected to the Internet and becoming what we know as the Internet of Things (IoT). In both commercial and industrial context, IoT plays a significant role in enabling automatisation and connectivity. For companies that want to become the innovation leader in their branch of industry, IoT is a useful method to gain competitive advantage where automatisation, predictive maintenance and connectivity can improve company’s performance. However, no research have been done from the perspective of an IoT-provider. How they can fully harness the power of IoT when they adopt it for their existing products or services? This study aim to investigate how a theoretical model would look like with the performance impact in focus when an innovation-driven company adopt IoT on their existing products. The research is conducted with a case study of a Swedish company in the heavy industry sector, which has successfully adapted IoT into their products. The empirical data was collected through documentation review and interview. This study results in a conceptual model that contains crucial factors which needs to be taken into consideration when adopting IoT. However, further research needs to be done, in order to verify this model as well as to be able to generalise the findings to cover innovation adoption in general.