Learn how "The Internet of Things" and the tidal wave of customer data can positively impact your service, grow revenue and increase profit potential.
In this presentation Tom Dibble, President and CEO of Aria:
-Highlights shifts in monetization models and recurring revenue
-Discusses "The Internet of Things" and emerging opportunities in customer data
-Shows you how a finance department with an agile billing system can maximize service, revenue and profit potential by leveraging their back-end monetization systems.
Will you be ready to exploit the revenue opportunities that come from 26 billion interconnected devices and the tidal wave of ensuing data?
Twitter is @Tom_Dibble and on Linkedin it is www.linkedin.com/pub/tom-dibble/0/169/9b2
IoT leverages the cloud and machine to machine communications to generate enormous amounts of data that detail who’s using what, what they are using it for, to automate, predict, customize and alert, creating a better user experience. For X, Y and Z.
And it’s already started and soon it will be pervasive and ubiquitous and will touch everyone, where they are…
IoT promises to touch everything we do. Gartner expected these connected devices to be bigger than smartphones, tablets and PCs combined. From devices that automatically control your lighting, heating and security to interactive toys that use data from kids to personalize the experience; from health check monitoring that enable patients to get up from their hospital beds sooner, and so the elderly to live at home longer; from vending machines and parking meters that alert companies and drivers when supplies or time is running out, to hotel doors that keep the right people locked out.
The total install base is expected to be 26 billion units in 2020, adding 1.9 trillion in economic value. By comparison the number of smartphones, tablets, and PC’s will reach about 7.3 Billion units.
To be successful in IoT we are going to have to learn to leverage everything that we have used in the past.
Are you prepared to take advantage?
But how big will it be?
IDC forecasts it to be worth a staggering $7 trillion in annual sales by 2020
Cisco predicts there will be over 50 billion connected devices
And Google preparing now to process information 200X more than the average person needs now.
The question isn’t whether it will be big but how big it will be?
According to research conducted by Cardinal Peak, an IoT engineering firm, 43 % of all companies will have implemented solutions within the next year with another 25% implementing a solution in the next 1-2 years. The question is will you be ahead or will you behind. And what do you need to have in place to take advantage of the coming tidal wave.
Delay is costly and irretrievable. The real costs result in a 12% hit in shareholder value for delayed launch and 33% decline in profits for a 6 month launch delay.
Here’s why:
You enter the market later
Market losses because you’ve lost first mover advantage
Products sold at discount to leader
Few products sold over the course of product lifecycle
Peak profitability shortened
3. Losses can’t be recovered because the clock starts ticking when customer perceives need and stops at product obsolescence
end of product lifecycle remains the same and not pushed out
Driven by market forces not your product cycle
In a hyper innovative economy these consequences become exponentially toxic to your business.
A 6-month delay can deplete 33% of lifecycle profits.
Announcements of product delays decreased average shareholder value by about 12 percent, according to the researchers. "Our results suggest that negative stock market reaction to product introduction delays is actually quite rational given the impact of delays on profitability," they write.
Source: http://inventionmachine.com/the-Invention-Machine-Blog/bid/87840/What-Are-Late-New-Product-Launches-Costing-You
Referencing:
Vinod Singhal, Departmental Editor of Production and Operations Management at Georgia Institute of Technology, and Kevin Hendricks, operations management professor at the Wilfrid Laurier University. In their study, "The Effect of Product Introduction Delays on Operating Performance”, the two researchers analyzed the financial performance of over 450 publicly traded companies, across industries, that had experienced product launch delays between 1987 to 2003.
**Don Reinertsen @DReinertsen The Principles of Product Development Flow. 2009
NOT THE DEVICES!!!!!! It’s the service
NOT THE DEVICES!!!!!! It’s the service
To be successful, you need to build back end systems that meet IoT drivers…
From *Monetizing the Internet of Things: 4 key areas of focus, Melissa Tolentino, Silicon Angle, Feb 24, 2014
Marie Spoche, who holds a degree in trademark and copyright law with a minor in IT, suggests focusing on these key areas…
http://siliconangle.com/blog/2014/02/24/monetizing-the-internet-of-things-4-key-areas-of-focus/
*Control configurations. Embedded Licensing monitors two aspects of how your software is used: by controlling access to the software source code and by controlling how the software-embedded hardware is used.
*Support field upgrades. Field upgrades allow a customer to decide to upgrade their software without having to send it back to the company or purchase a new piece of hardware. With embedded software licensing, companies can verify the software’s integrity and then perform the upgrade in the field.
*Create personalized offerings. When your smart software is monitored with an embedded license, you are able to offer different levels of software functionality within the same essential hardware device. This allows you to market essentially the same piece of hardware with different software at different price points to remain competitive.
*Gather usage data. With licensing that ensures software cannot be tampered with or hacked, it becomes possible to monitor detailed usage data from the moment the object leaves the warehouse. This allows your company to learn which features are more or less popular, offer value-driven upgrade options and more.
Rinse and repeat with greater velocity…
Agile billing to the rescue:
What is it? In short Agile billing is defined as..
“An agile billing solution is a competitive tool.” – Andrew Dailey
To do this your billing platform needs to act as the central revenue management hub for your entire recurring revenue business, enabling you to create unlimited monetization models, effectively respond to any type of revenue event that may occur in your business, test models and iterate on your success and do it at a scale. In the end IoT is about serving your customer versus creating devices. Make sure you have technologies in place that maximize your capabilites and opportunities.
The truth about IoT…
IoT is here now, time to prepare
MoT = a service, not the device
It’s about collecting and applying consumption data
It will drive intelligent go-to-market decisions, even if it doesn’t directly influence a bill!
Enabling technologies are cheap; that’s good and bad
Your biggest competitive differentiator will be pricing and packaging, and you need to move quickly and codelessly