Being able to effectively scale, improve margins, and monetize every aspect of your IoT operations requires a robust underlying platform, one built to withstand the intense rigors of smart device data generation.
Enterprises are just beginning to understand how to pull value out of the massive amounts of data generated by connected devices or sensors. Published research shows that a mere eight percent of businesses are using more than 25 percent of their IoT data. That number is expected to grow significantly over the next few years.
Monetizing IoT requires a new way of thinking about how business does business, and that can be a struggle for organizations accustomed to running on a traditional paradigm. IoT business models cannot be measured by the same metrics as consumer voice and data services. In fact, IoT typically appears as a horrible investment if viewed in a traditional manner. Companies must rethink their business models to compete in the interconnected era.
Road to Monetization
The IoT provides incredible new pathways for businesses and consumers alike. Usage will move past just smart phones to include video streaming and conferencing, automotive, medical, virtual reality, new mobile devices, and much morecreating opportunities for new use cases yet unimagined.
- The real value of IoT to an organization lies in how it can fundamentally change its interaction with customers, and that requires a move from a CAPEX model to an OPEX model where products become services that require minimal capital outlay.
- Rethink how profit and revenue are determined. The monthly average revenue per connection (ARPC) for IoT deployments is far lower than the average revenue per user (ARPU) for consumer services and this can look devastating on a balance sheet.
- Ensure the entire company, from finance to engineering to marketing, is an integral part of the IoT deployment. The immense amounts of data collected affect every aspect of the enterprise.
Data as Profit Center
Insight is invaluable, and as enterprises put IoT-generated insights into practice (either for themselves or for their customers), they will transform certain segments of their operations into revenue producers. The potential of data becoming a revenue stream will incentivize companies to further explore IoT innovations and deployments. However, unless the hidden value of IoT data is unlocked, the potential will remain only on paper.
A concerted effort is needed to push enterprises to give data a deeper look and understand how it fits into their business and operational models. It is only then that the lucrative potential for data monetization will appear essential to businesses that have not yet embraced the Internet of Things.
Aeris can deliver a customized platform that turns every device and sensor into a profit center.
For more information, download our How to Monetize IoT whitepaper here.