The opportunity to capitalise on the internet of things is significant for many companies, but that doesn’t mean that it is a straightforward journey to success. Companies need to analyse their current business practices and evaluate where benefits can be gained - and for some this could be changing their business model in its entirety.
Making money from IoT requires a business model transition
Device manufacturers are a prime example of this. With hardware commoditisation forcing their margins downwards and low cost competitors applying increasing pressure, manufacturers need to build a sustainable business that brings in continuous revenue beyond the initial device sale.
By devising a software led strategy, device manufacturers can transition to new business models underpinned by IoT app stores and ecosystems of 3rd party ISVs (independent software vendors).
- The drivers for device manufacturers to re-evaluate their existing business models
- The opportunities opened to them by adopting an IoT led, software defined business model to achieve ongoing revenue
- The steps required to move them through this transition and examples of businesses who have successfully achieved this already