At a meetup I attended a couple of years ago there was a panel discussion about the ‘Value of IoT’. Needless to say, the panel had a lot of views, in many cases based on the ‘talking points’ of the companies they were working for. One point was ‘the data’; an opposing point was the fact that it was the hardware, i.e. most companies could charge a very high premium for a ‘connected’ product that had an Apple/Android app associated with it. Markets and businesses have evolved since then – but the question remains: What is the value of IoT?
Answer is, you have to create it!
Some ‘Financial IoT values‘ are obvious and easy to calculate. A couple of examples for Remote Systems Monitoring of geographically deployed systems.
Monetary Value: All systems are deployed because they provide some type of value in the form of operational monitoring, results monitoring or simply knowing what state a system is in. This value is reflected in things like yields, process capacity, penalties and other variables directly translatable to dollars. The value of IoT is that it keeps track of how systems operate and perform all the time and saves this information for analysis resulting in better yields, capacities, outputs associated with penalties. IoT even allows for business models based on production, utilization and performance instead of the common ‘sales/support’ approach used today.
Expense Value: Sending a repair person out to a remote site costs between $500 and $1,000. While remote monitoring may not eliminate all these visits, over time it may become clear as to why they are necessary or preventable. The value of IoT is that it not only can provide real time monitoring, but it also collects continuous operational data over very long time periods. If this date is given to design engineers and manufacturing, it can result in design changes and improvements. This continuous enhancement approach is well known since the 1970s. What IoT brings is to use this approach to systems that are deployed.
Revenue Value from Product Attributes/Services Revenues: In competitive markets where there are many suppliers, companies constantly have to look for product/system improvements and ways to address customer’s needs. Offering remote systems monitoring as a way for customers to better understand and manage the systems they have bought is an example where IoT can be used as a competitive product/system add-on or augmentation. This can be offered as a stand-alone product/application sold as a product or as an ongoing service application generating ongoing monthly revenues.
Triotos will work with your team to develop the best revenue model for Remote systems Monitoring and then help you implement it for your business and customers.