By Marty Bakal
A recent Forbes article “Don’t underestimate the impact of Internet of Things” did a great job explaining the benefits of IoT. Many people think IoT is also about any consumer device that connects to the internet. Basic consumer devices are simple to understand but IoT is larger and needs to be especially to achieve the growth analysts expect. The critical element is use cases that integrate devices into a complete solution. The thing that gets me excited about IoT is the fact that it crosses all industries and can integrate everything around us together. Sensors that monitor how we walk, the temperature inside a building, maintenance of medical devices all can be converted into a complete system. The Forbes article gives a few of these use cases and links to even more. Understanding what use cases are useful and which aren’t is critical.
Last week another Forbes article “Putting Business First in the Internet of Things” came out highlighting the need to put business first when building IoT solutions. The article makes the point that the Internet grew rapidly because it allowed people worldwide to connect much more easily but you still needed relevant scenarios for people to want to connect. #IoT is having the same effect on devices. The trick here will be making the solutions that occur be relevant to the end business needs. The article states “Our customers in the IoT market do not buy components“ confirms De La Mora of Cisco, “they buy solutions tied to business outcomes and results.” The issue is the solutions are quite complex and many times not even envisioned by the producer of the original product. So to achieve this result many companies are simply building IoT networking platforms to allow partners to develop their own solutions to offer to consumers.
In both articles one of the key points was figuring out a way to monetize the solution is important to keep investment on IoT into the future and achieve a good return on investment (#ROI). Without monetization how do you know the effort was worth the expense and whether to keep the development effort going? The typical solution mentioned is charging based on usage, i.e. data that passes through a network or time spent using software. There are many business models which can be helpful depending on the specific solution being provided.
For more blogs on how to profit from the business of IoT please take a look at these IoT related blogs:
- IoT Tops Gartner Hype Cycle for Emerging Technologies – What Does It Mean?
- How IoT Changes Business Models
- Challenges facing the IoT