Knowledge Byte: Monetization Opportunities for IoT
With the rapid rise in the adoption of IoT, many companies are taking this opportunity to enter the market and profit from it using different business models (generating revenue, improving efficiency, etc.).
Some of the following entities will benefit highly in IoT monetization:
● Device manufacturers that collect data (sensors, actuators, data loggers, etc.)
● Connectivity providers that transmit data (communication protocols)
● Cloud service providers that store huge amounts of data (with backups, business continuity, and disaster recovery)
● Big data analysts that provide valued information
● End-to-end system integrators and providers that provide the complete solution from data collection to decisive information
Link Monetization to Customer Value
The IoT is helping companies in monetization by reducing operational costs, creating new revenue resources, hence driving bottom-line results.
Monetization by cost reduction:
The monetization strategy should be closely linked to customer value and the focus should be on identifying value creation and benefits around the areas of cost reduction and revenue enhancement that are listed in the above figure. All of the above benefits will translate into compelling value propositions, significant brand enhancement, strong use cases, and powerful ROIs. The key is to thoroughly analyze and identify benefits that can help to monetize a particular IoT offering. Monetization by revenue enhancements:
IoT will unlock new revenue opportunities for companies targeting at monetization. The revenue enhancements can be achieved by points shown in the image, for example, allowing companies to become more competitive, increase margin, be able to sell new products or services, etc.
Related products to help you upskill
The industry-recognized CCC Internet of Things Foundation ensures you are ready to add value to organizations of diverse industries and dimensions. It does so through highly interactive and thought-provoking discussions which focus on: Group exploration and debates Lab exercises which allow learners to experience IoT applications Case study scenarios for IoT End of Module questions
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