White Paper: IoT Monetization Strategies
by Josh Simi, on August 25, 2015
The Internet of Things (IoT) movement is upon us all. Devices all around us from the home to the factory are becoming connected to the Internet. For durable goods manufacturers, opportunities abound to create an IoT solution that captures new sources of revenue, reduces expenses, and better engages with customers who are increasingly hungry for quantitative information about the devices and environments around them. For enterprises this is both an exciting and terrifying time, as the opportunity to monetize the value of data has never been greater and the threat of new market entrants has never been higher.
For companies looking to create an IoT business model for a connected product offering, it is important to examine the comprehensive impact to topline revenue, investment and ongoing expenses on the bottom line, and competitive positioning in the marketplace.
Some of the most powerful economic value that can be created is when expenses are reduced, safety is increased, or customer loyalty deepens, all of which are not mutually exclusive. To drive maximum revenue for connected product deployments, it is critical to be laser-focused on value creation. Where there is value, there is a business model to be had. Pursuing topline growth rather than value creation is a single-minded approach to a multi-dimensional opportunity.
This document explores IoT monetization strategies for connected product fleets that are hyper-centered on value creation. Towards that end, this IoT white paper identifies nine categories for connected product value creation, provides a methodology for modeling that value and creating a business case, and presents a forward-looking point of view that encourages OEMs to make informed investments now that build a foundation for future data-driven connected product and service offerings that are robust, trustworthy, and relevant.
✔ Embracing the New Connected Normal
✔ Aligning Organizational Arrows
✔ Capitalize on the Value of Data
✔ New Revenue Streams
✔ Lean Operational Efficiencies
✔ Strong Competitive Positioning
✔ Sticky Brand Loyalty
✔ Measured Risk Reduction
✔ Streamlined Regulatory Compliance
✔ Faster Time to Market
✔ Quantifiable Product Quality
✔ Relevant Customer Service and Insight
✔ Quantifying Value
✔ Optimizing for Value