The Urgent Need for IoT Monetization Strategies!
Note: This article has been rewritten and has first appeared in IoT Evolution and Dell EMC.
“Why incur the expense of generating and collecting all of this IoT data if you’re not going to monetize it?”
Organizations are racing to embrace the Internet of Things (IoT) as the pundits create “visions of sugar-plums dancing in their heads.” McKinsey Global Institute released their study “The Internet of Things: Mapping the Value beyond the Hype” in June 2015 that highlighted the staggering financial value that IoT could create! (See Figure)
10 Cool Companies That Are Already Monetizing the Internet of Things
1. Philips Hue Connected Bulb
You can control Phillips Hue connected bulbs from your smartphone or tablet. Change brightness and color to suit your moods. Turn lights on and off remotely — even make it appear you’re home when you’re not.
Monetization Model: One-Time Pay + Free App
2. Audi Connect
With the IoT, Audi is turning its cars into rolling wireless hotspots. Audi Connect features 4G/LTE Wi-Fi connectivity and navigation powered by Google Earth and Voice Search. Directions, real-time traffic, and weather are just a voice command away.
Monetization Model: 6 Mo. Subscription-$99, 30 Mo.-$499
3. Nexia Home Intelligence
With Nexia Home Intelligence, your home keeps pace with your daily life. Operate connected lights, appliances, thermostats, and door locks from anywhere through its all-in-one app.
Monetization Model: Starter Kit + $9.99/Mo Subscription
4. Jawbone UP
Wireless sensors in the wearable Jawbone UP lifestyle tracker help you get better sleep, stay active, and eat smarter. A free app includes built-in analytics that provide ongoing insights, tips, and reminders to help you reach your goals.
Monetization Model: One Time Pay + Free App
5. Nest Learning Thermostat
The Nest Learning Thermostat automatically adjusts home temperatures based on your lifestyle and habits. It can even anticipate changing seasons. It also connects to an ever-growing range of smart home devices and appliances.
Monetization Model: One Time Pay + Free App
6. Senior Monitoring System
The senior monitoring system from BeClose (now known as Wellness from Alarm.com) helps families keep an eye on elderly loved ones. Its wearable sensors send alerts when they detect changes in sleep patterns, eating habits, or incidents (such as falls).
Monetization Model: One-Time Purchase + $69-$99/Mo. Subscription
7. Zatar
A cloud-based platform for the IoT, Zatar helps ensure that hundreds of connected devices and applications from many different providers can work together. It does so through a standards-based approach and open APIs.
Monetization Model: Up to 5 Devices Free, $2/Device/Month After
8. Jasper Connected Car Cloud
Through its Connected Car software, Jasper is helping automakers bring cars to market that integrate with a fast-growing ecosystem of connected devices, applications, and services. Examples include remote diagnostics, enhanced streaming entertainment, and location-aware services.
Monetization Model: White Label Services
9. Streetline Parking
The sensor-based Streetline parking solution works in conjunction with mobile apps to help drivers find empty spaces in real time, make reservations, and pay by phone. It also provides analytics that help cities improve parking efficiency.
Monetization Model: Upfront Installation Cost + Monthly Fee
10. WeMo Switch
With the Wi-Fi powered WeMo Switch, you can control anything you plug into it from a tablet or smartphone. Turn home appliances and electronic devices off and on remotely. Or just set them and forget them using the WeMo app’s built-in timers.
Monetization Model: One Time Pay + Free App
What these examples make clear is that in the emerging world of the Internet of Things, everything is connected. With billions of IoT devices on the way, the monetization possibilities aren’t limited to just ten companies. They’re endless.
IoT and RoI are inter-related
One of the biggest promises of IoT is the change in mindset for doing business — a mindset to move from a product-based monetization approach to a service-based approach. OEMs, ISVs, CSPs and other stakeholders have to contribute with their own intellectual property to build a successful connected ecosystem. This requires a monetization framework that allows all contributors to leverage from the new IoT business models, and have the agility to deploy new applications quickly to have a quicker ROI. An application enablement platform like SensorLogic can bridge this requirement with quick device on-boarding and pre-built IoT services.
Enable flexible monetization models
IoT is enabling new business models. Take the example of PaaS (Product as a Service), where an OEM produces a device, but rather than charging the customer up-front, the OEM allows the customer to pay through flexible models (metered, monthly, pay-per-use etc.). The Sentinel Software Monetization solutions allow OEM and CSP (cloud service provider) to implement flexible monetization models through tried and tested technology.
License & Entitlement Management
The role of software is increasing and will continue to increase as we see more connected applications emerge. ISVs have historically dealt with many challenges to monetize their intellectual property — the software! This includes problems like piracy and reverse engineering. While software companies have evolved, emerging and incumbent device manufacturers are still new to these issues. In order to monetize their intellectual property, they need proper enforcement of licensing policies for their devices, or even specific features on the devices. Sentinel Embedded and Cloud Service Monetization solutions enable OEM and cloud service vendors to enforce licensing models.
Software upgrades
As IoT services evolve, OEM will require a robust infrastructure to remotely upgrade software and features on their devices. But such upgrades require the highest levels of security and reliability to ensure that the device in the field cannot be compromised or leave the device useless. Sentinel Embedded solutions provide a framework for secure download of software upgrades to ensure new features can be rapidly deployed for new revenue streams from connected devices.
Device management
Due to proliferation of endpoints, the complexity of multiple device protocols has increased. From standards-based to proprietary implementations, integration of devices into IoT ecosystems is a time consuming process. In order to help devices speak to enterprise or cloud resources, and vice versa, the SensorLogic platform plays the role of an orchestrator. Through the use of device translators, device on-boarding is easier, and the time to setup and run a device in the network is drastically reduced.
IoT application development
The SensorL ogic Platform provides a framework for rapidly developing new application for evolving IoT use cases. This framework includes (but not limited to) an array of web services for authentication & administration, alarm notifications and location services. It also offers pre-integration with 3rd party services like connectivity platforms and geofencing solutions. These pre-built building blocks help IoT developers speed up the development of new use cases, on top of these existing blocks. Developer kits like the Cinterion Concept Board and Java as an application platform allow quick application design and prototyping. For the customer, this means a quicker time to deployment and a fast ROI for their IoT investments.
Explore how to drive maximum revenue from connected-product deployments.
The Internet of Things is having a significant impact on the creation of new products and services. But to generate new revenue from IoT, companies need to transform the information from smart, connected products into services. Hence the focus should be on value creation to get maximum revenue for connected product deployments.
Considering an example of original equipment manufacturers (OEMs), they often face complicatedmarketplace to track, monitor and control devices remotely. In order to remain successful, OEMs must be prepared to embrace the new connected normal in their future product offerings. Making an investment in a connected product offering is an investment for future. In order to make this successful, it is important to intertwine product performance with an objective to revolutionize the company and the industry based on data analytics.
