How to Build an Effective Monetisation Strategy for IoT Data
It is said that IoT technology is still in its infancy but the way it is booming in different sectors is astonishing. There are many reports and analysis regarding how this industry will impact the digital world and how it’s already proving to be a game changer. For instance, a recent report argued the medical IoT device market will hit $158 billion.
There are still gaps when it comes to IoT, for example data security and privacy, acceptance of standards, and investment. It is therefore very important to understand how the potential ROI from IoT technology can be realised and the factors involved in it.
At this point in time certain aspects can be considered which might lead to monetisation of IoT.
Management of data
The by-product of all the sensors and smart products is data. This data goes through different cycles where it is processed and simulated and act as an input for improvement of the product lifecycle. When millions of devices start collecting data and upload to a server, this might lead to congestion and breakdown of the service. In order to keep things rolling, it is critical to use the data appropriately.
Maintenance of products
In industries where costly machinery is running, like in a manufacturing plant and product lines, there is always a danger with respect to their failure and halting the complete production. In such a situation maintenance at the right time can prove essential and time consuming for the end product. Becoming efficient on that front can help in monetising largely in terms of profits.
Awareness and understanding
There are upcoming standards and protocols which will uplift IoT. From a development point of view it is important to create a workforce which is equipped with the right set of skills. This will help the industries immensely in terms of bringing products quicker to market. Investing now in learning will reduce time for the development in future.
Prototyping and adapting existing technology
Different frameworks and combinations of software and hardware need to be tested so that the constraints involved in the existing technologies can be identified. Identifying these issues now will help tremendously in the future and save money.
After considering above aspects, different monetisation models come to mind:
Hardware driven: Existing hardware is holding good with the wireless technologies while manufacturing costs remain low. But with time the hardware technology will be limited, if we follow Moore’s Law. In that case the software platforms performing the data management and giving access to the service can be utilised for monetary benefits.
Service driven: Backend technologies are the backbone of IoT technology. These backend technologies can be handled appropriately and turned into profitable services. There are services, for example, in connected cars which provide infotainment and navigation. These services can be offered in forms of packages to the consumers.
Data: The amount of data going to be generated by IoT is turning out to be a big problem. In this situation, data analytics is going to play a key role. Data storage and data management will drive the business in a whole new direction. There are still unknown factors, not known at this stage of IoT development, which might prove decisive for monetising IoT: points like transparency and handling of personal data and information of the customer, software services and support.
Different stakeholders can profit from IoT services. For instance, smart cities can provide governments ways that will help them to manage services like electricity and water management efficiently with the help of smart products. Data is crucial for IoT and handling it efficiently and smartly will ensure any initiative’s success.
If you would like to learn more about this topic, why not attend one of the IoT Tech Expo World Series Events!
IoT Tech Expo North America 2020 (4-5 November)
IoT Tech Expo Europe 2020 (24-25 November)
IoT Tech Expo Global 2021 (17-18th March 2021)