IoT Strategy: Identifying & Creating Value
by Exosite, on September 11, 2015
ROI business models for the Internet of Things are fundamentally centered on creating value within the context of data-driven experiences. Where there is value, someone is willing to pay for it. In the new world of connected product deployments and data, there is an entirely new landscape of value that can be created to drive revenue, reduce expenses, or capture market share.
When identifying your IoT generation of business and developing value propositions for a new connected product offering, consider the following questions:
- How can I make my supply chain more efficient with this product offering?
- How will added product features increase brand loyalty?
- How can customer service become more relevant?
- How can this product improve safety?
- How can this product help customers reduce risk?
- How can this product streamline jobs?
- What and where are the pain points in the existing product or process?
- What and where is the IoT opportunity to make the product experience more fun?
- Where can this product save time?
- How can this product serve new markets?
The answers to these questions and others will help an organization identify why it is building a connected product family before it becomes preoccupied with how to make it happen. Understanding the why allows an organization to select a business model that more accurately aligns with the value-creation goals of connected product deployment, a move that plays an integral role in its success.
Exosite has helped medium- and large-sized customers deploy a variety of connected products in diverse industries. Through this experience, Exosite has seen hundreds of IoT business models and monetization strategies based on different types of value creation, the most successful of which are included below and described in more detail in the follow within the Monetization Strategies White Paper.
1. New revenue streams
2. Lean operational efficiencies
3. Strong competitive positioning
4. Stick brand loyalty
5. Measured risk reduction
6. Streamlined regulatory compliance
7. Faster time to market
8. Quantifiable product quality
9. Relevant customer service and insight
Answering why and developing an in-depth and well thought out IoT strategy are among the first steps in creating a successful end product. By answering the questions referenced above and following these guidelines you have taken the necessary first steps to reach your IoT solution.