The Business & Monetization of Smart Connected Devices
Many have spoken of the Internet of Things (IoT) and the Industrial Internet of Things, but how will they develop and what business models will be most successful in delivering IoT products, services, and profits? Come what may, the IoT is set to completely change the relationship between producers and end-users. One of the main changes will be increasing focus on end-users and what they need rather than on the types of products and services companies think they are capable of producing.
At the same time, companies will increasingly turn to device manufacturers and software developers because success will increasingly rely on software-based business models and solutions. A bevy of technologies is moving at warp speed to rewire how businesses are structured and operate, altering business models. Cloud computing, embedded and mobile applications, and streamlined financial processing are just the beginning.
IoT of Strategic Importance to 60% of Global Businesses
The Internet of Things is a work in progress but includes:
- Small Business Internet of Things
- Internet of Your Things
- Internet of Things for Your Home
- Internet of Things for Factories
- Internet of Things for Smart Cities
Appliances, cars, phones, and virtually any product or service you can think of are forcing businesses to rethink their business models because successful IoT deployment, usually an expensive proposition, will hinge on coming up with the right strategies.
Because the Internet of things is so new, it will be necessary for businesses to focus on their desired business outcomes and then to carefully examine the specific technology needed to accomplish it.
In The Five Interconnected Internet of Things Business Models, Guy F. Courtin of Constellation Research explains there will be “80 billion sensors in connected devices by 2020. There also will be 100 million viral connections added per minute. Both the explosion of connected devices and the interactions created will result in massive data streams and new opportunities for brands and organizations from the Internet of Things (IoT).”
The following video by Accenture explains the “Outcome Based Business Model in the Internet of Things (IoT).