by Josh Simi, on October 28, 2015
Now that you have been able to properly identify your IoT business model, it’s time to optimize for value.
Step one is making sure you have a clear understanding of how your connected product offering adds value in the IoT marketplace. Second, which is arguably even more important, is understanding the value you are providing to your end users, as ultimately you are going to need them to adopt your product as they hold the keys to your success. Once this has been fully understood, a model should be built for quantifying what that value represents. If these are in place, an OEM can then organizationally align to optimize for value.
For example, if an OEM creates an IoT connected pressure regulator, the connectivity features may enable better insight into system usage patterns and enable predictive failure analytics. If these connected product features enable higher product margins and/or higher sales volume, the OEM can optimize for those value points by doubling down on investments in customer service desk integrations and by promoting a finer-tuned brand image that communicates risk reduction and trust.
As if creating value with an IoT product offering is not difficult enough, capturing value is yet another science to conquer. Download our IoT Monetization Strategies white paper to learn how to capture value with your connected product deployment:
