Post on 14-Jan-2017
HowdoyouCutawaytheIoTHypeandFindtheRevenueOpportunity?
SamColley,CEOPodsystemInc.
#IoTDevCon
www.iot-devcon.com
“Thisisthelargestgrowthinthehistoryofhumans”JanusBryzek,knownas“thefatherofsensors”
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#IoTDevCon
TheInternetofThings(IoT)hasbeenlabelled as
"thenextIndustrialRevolution"becauseitwillchangetheway
people live,work,entertain,andtravel,aswellashow
governmentsandbusinessesinteractwiththeworld.”
PaulDaugherty,chieftechnologyofficeratAccenture
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#IoTDevCon
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#IoTDevCon
Thingsconnected:
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#IoTDevCon
GartnerHypeCycle2015
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• Usage willbethekeydriverforIoTmonetization.
#IoTDevCon
• Don´tthink“revenue”,think“recurringrevenue”.
• Owningthecustomer isthekeytosuccess.
• MonetizingtheIoTisaboutturningproductsintoservices.
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UsagewillbethekeydriverforIoTmonetization
#IoTDevCon
WhydidGooglebuyNest?
WhyisGoProbecomingamediacompany?
OpportunitiesforgeneratingrecurringrevenueexistwithalltypesofIoTapplications.
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#IoTDevCon
Don´tthink“revenue”,think“recurringrevenue”
One-offPremiumService:• Wearablemarket:e.g.Fitbit
RecurringPremiumService:• CanaryhomeSecuritydevicecharges
arecurringServicefee.
“Freemium”:• Verycommon inthemobileworld,e.g.Skype
orFreedomPop.
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Creatingasubscriptionserviceinaproductbasedcompanyisnoteasy.
#IoTDevCon
Whatchangesneedtobemadetomovefromaproducttoaserviceorientedcompany?
• Itrequiresacompletechangeinbusinessmodel.
• Thebilling structureandmethodology isdifferent.
• Itaffectscompanystructureandresources.
• Thesolutionmustbefuture-proofed.• Requiresflexibility torespond tochangingcustomer
demands.
MonetizingtheIoT isaboutturningproductsintoservices
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• TheessentialelementsofanIoTapplicationarehardware,software,connectivity.
- Hardware isanon-starterintermsofongoingrevenue.
- Applications canbedevelopedaroundthedevicethatcanbe
monetized.
#IoTDevCon
Owningthecustomeristhekeytosuccess:
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#IoTDevCon
- Whataboutconnectivity?
• Manyconsumerapplicationsbasedonwi-fi,Bluetooth.
• Thereforethecustomerisownedbythefixed/cellular provider.
• WhataboutB2Bapplications?E.g.manufacturing,agriculture,energy,
connectedca
• Thesehaveabuilt-insubscriptionservice:cellulardata.
• Whatifyoucouldownthecustomerthroughthecellulardatasubscription?
Owningthecustomeristhekeytosuccess:
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Whatdoyouneedtoenablethisprocess?
• Whitelabelconnectivityplatform:providesconnectivity,monitoring, billing, devicemanagement,support, analytics.
• Partnership withaspecialistIoTconnectivityprovidergivesyoulong termsecurity.
• Opportunities toprovideanalyticsandprofit fromtheusageofyourapplication.
#IoTDevCon
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• TakingGPStrackingtoanewlevelbyintegratingwithemergingtechnologies.
• Developmentofanewgenerationofdevicesandapplicationsdesignedtoincreaseproductivityandefficiency,minimiseaccidents,improvesafety.
• Changeinbusinessmodelfromhardware+softwareplayertofullrecurringrevenuesolution.
• Valueaddedserviceslayeredontope.g.reportsthataddvalueforthecustomerandfinancialvalueforthecompany.
• Byincorporatingmoreintothesolutionthelongtermvalueisincreasedforboththecompanyandthecustomer.
#IoTDevCon
Casestudy:FlexGPS