IoT improving your current business model
A common approach for existing businesses to IoT often comes with an internal cost savings approach. Not a bad approach, as IoT technology can improve the efficiency and quality of your operations substantially. However one should be very aware of the opportunities that will open up for a broader and more data driven business model by exploring an approach with products connected to an IoT cloud platform.
When deploying your physical products with an IoT approach, you increase the insights of your own company and the insight and product dependency of your clients. When considering the kind of data you would like to gather and analyze, remember to be very open minded and innovative. Sometimes it is hard to visualize all the opportunities in front of you, and if in doubt it might be better shipping your products a bit overloaded with sensors. In the future you can utilize data gathered with their implied possibilities that you perhaps can not see today.
- Ship products with sensors that keeps sending you data, so that you can offer service agreements that are pro-active. This would allow you to plan your time schedule for the service people better, and also reduce the unplanned downtime for you clients.
- You will gain insight that improves and expands the value proposition to your customers. You could start selling security and uptime for the clients, you could offer data insight to the clients on how much the product is used, where it´s used, how it´s used and then utilize predictive analyzes to suggest improved efficiency at the clients side.
- You could offer integrations to the clients internal control and logistics systems, which would support them in optimizing their operations.
Due to the usage insights, you might consider offering product rental solutions to clients, gaining you extra profit and reducing the clients overall costs.
You will find that a well designed IoT approach will tighten the connection you have with your clients, and also introduce you more efficiently to new additions and up-sales on your current and future product range.
Author: Jon Endre Gjærum, Managing Partner