-It's not just focus on products or technology, as IoT is opening up and changing way business is done.
The question of making money from the IoT was absolutely addressed in Tolpagorni’s IoT conference on 19-20th November. I was there with 50 other interested participants and industry speakers.
For me, the most rewarding thing about this conference was that the two days were comprehensive enough to address the IoT monetization question while demonstrated actual results from different industries.
IoT is not just a buzzword. It is happening now and happening everywhere – transportation, security, home, hospital and even in the garden!
It was clear what are the driving forces and the concepts to address - not only technology but what need to put in place organizationally. And fast. To ensure that your existing business model changes when you encounter the IoT journey that businesses handle every day.
Telenor Connexion even had the IoT $ formula… use this equation and you are off to a good start.
One of the speakers actually said that it was one of the three best conferences he had been to this year! So when you hear that, you really know that you are attending the right conference.
It was not just focus on products or technology, as IoT is opening up and changing way business is done. Enabling the device to be connected to the internet extends or even moves us completely away from the “make and sell” product business to “sense-assess-respond” business. This changes it from a product manufacturer that enables the technology, to a product and service engager where we should be proactive with the customer. Having and maintaining this relationship is all part of the business so any data, yes big or small data, we have should offer the opportunity to improve the product –reduce cost/improve functionality, improve the service offering, through data analytics create new as-a-service driven opportunities.
I am not saying that this journey is easy. But I learned from each of the speakers and our animated discussions over lunch that you need to start immediately and run with it! The directions and possibilities appear to be endless.
Nobody knows your own business better than you do, so identify an easy place to start. One suggestion is to retrofit your existing installed product base with internet connections. If you don’t, there is always a competitor out there who will! Build on the data, track it and this could be your new golden revenue.
Start small but think global. It’s an evolution so add new products and services along with way.
The conclusion I draw is simple. Carefully select your place and partners in the IoT ecosystem as today’s partners could be your competition tomorrow and vice versa. Move up your customer’s value chain, consider the IoT Technology stack and your IoT decision framework.
Also, check out Magnus Billgren's blog on How to Develop Product Strategy for IoT Business? That gives you some insight on Cluster Strategy and the importance of the User Life Cycle.
To summon, here's 5 Steps to make money in IoT:
- Organizational changes and partnerships in the IoT ecosystem modify your business values in preparation to open up for IoT revenues
- Move from (or add on) “make and sell” product business to “sense-assess-respond” product+services business model.
- Role of Data analytics – big or small perform analytics on your captured data and extract it based on re-use for product or service enhancements, use of business trading, or resell data.
- Start now and with what you have and never wait for a new inventions. Enhance products with services at every opportunity.
- Retrofit your install base with connectivity – as a quick win.
Feel free to download all speaker presentations and a summary report of the day. You get it here: