Thanks everyone who attended this BoldPM Insights webcast. Thanks also to Grey Heron, Launch Podcast and Launch Workplaces.
Monetizing IoT: Show Me The Money
Announcement: http://bit.ly/bldpmiwa0616
Slideshare: http://bit.ly/bldpmi0616
Summary: http://bit.ly/bldpmis0616
Interested in actionable business intelligence? Sign up for upcoming BoldPM Insights webcasts here: bit.ly/boldpmwebcasts.
If you like this webcast content, be sure to like it and share it with others. We hope you can use this information to implement changes within your organization.
Description
Looking to convert IoT opportunities into new revenue streams?
The Internet of Things (IoT) is the next wave of computing. Although many IoT technologies have been around for years, they are being recombined with entirely new business models and revenue opportunities. Your company can’t afford to miss out during this disruptive period.
IDC predicts 30 billion ‘things’ will be connected to the IoT by 2020. It’s an incredible opportunity, especially for device and software manufacturers. New service, subscription and recurring revenue models will extend and replace product sales to increase profitability. The IoT will demand connectivity, platforms, applications, secure hardware and supporting services.
Developing great technology is no longer enough. In IoT, recognizing potential new business models and monetizing them are critical. Only the companies that can make this transition to a new, more interconnected world will secure their future. Join us and discover the opportunities to transform your business.
Speaker: Chris Kocher, Co-Founder and Managing Director, Grey Heron
Moderator: Hector Del Castillo, Product Management Consultant, Bold PM
About Chris Kocher
Chris Kocher is co-founder and managing director of San Francisco-based Grey Heron, a management and marketing consulting firm that helps executives and investors turn technologies into substantive businesses.
Grey Heron has worked with over 120 companies through multiple innovation and investment cycles. The Grey Heron team brings a wealth of strategic and hands-on operating experience to help CEOs, executives and investors increase revenues and shareholder value. They help build leaders by innovating with new business models, product strategies and monetization in established industries and markets that are being disrupted.
To learn more about how Chris Kocher can help you in growing your business, visit www.greyheron.com or contact kocher@greyheron.com. Follow Chris on Twitter @xopher5.
Become a Speaker
Contact Hector Del Castillo if you are an author, or experienced speaker and have engaging business intelligence topics for executives, managers and business leaders.
Contact: hector@boldpm.com Connect: linkd.in/hdelcastillo Follow:@hmdelcastillo Visit: bit.ly/b
The Coffee Bean & Tea Leaf(CBTL), Business strategy case study
BoldPM Insights: Monetizing IoT: Show Me The Money
1. Chris Kocher
www.greyheron.com
This presentation may contain copyright material owned by other authors. I have made an attempt to make proper attributions. If you
feel that I have failed to do so, I would greatly appreciate it if you contact me directly so I can attempt to correct the matter.
2. Thanks everyone who attended this session. It was a
pleasure and honor to host this discussion.
If you like this content, be sure to like it and share it
with others.
Interested in bringing this topic to your community?
Contact me and let me know how I can help you.
5. Participate and Win!!!
Everyone who attends gets
a free electronic copy of
Grey Heron White Paper
and “When Hardware
Meets Software.” Must be
present to win.
6. Today’s Speaker
Hector Del Castillo
Product Innovation
Consultant, BoldPM
Chris Kocher
Managing Director and
Co-Founder, Grey Heron
8. There is Nothing New in IoT
- but everything has changed
Chris Kocher kocher@greyheron.com
Networks
Big Data
Solenoids
Chips
Sensors
Compute engines
Clouds
Smart Phones
Platforms
Appliances
Analytics
Storage
Communication
protocols
Security
Things
Devices
9. Each Wave of Computing Innovation Disrupted Incumbents and
Created New Business Models
Chris Kocher kocher@greyheron.com
Size,
Price
# of Devices and Time
Embedded Sensors
and Wearables
2010s – 2020s
Network
Speed,
Bandwidth
Minicomputers
1970s-1980s
Mainframes
1960s-1970s
PCs and Laptops
1980s – 1990s
Smartphones,
Tablets 2000s-2010s
Modems 1200, 2400
9600, 56K baud
Acoustic Couplers
Internet
10. IoT - From the Practical to the Absurd
Chris Kocher kocher@greyheron.com
GE sensors on fan blades Jamy Internet Toaster
11. How Big Is the IoT Monetization Opportunity?
30-50
Billion
CISCO
Devices by 2020
$2.5
Trillion
6.6
Sensors
Per Person by 2020
GSMA
GartnerGE
$10-15
Trillion
Global GDP productivity
gains over next 20 years
IoT Value in 2020
$4-11
Trillion
Global IoT market
by 2025
McKinsey
$309
Billion
Additional supplier
revenues by 2020
$1.9
Trillion
Cost savings and
improved productivity
$7.1
Trillion
IDC
Market for IoT
Solutions in 2020
GartnerCISCO
Chris Kocher kocher@greyheron.com
12. 10 Key Areas Driving IoT Ecosystems
Smart Cars
Retail Stores
Quantified Self - eHealthcare
Connected HomesIntelligent Transportation
Agriculture 2.0
Smart Cities and eGovernment ($148B in ‘20)
Smart Buildings:
Energy, Light, Security
Industrial Internet Utilities and Energy Grids
Chris Kocher kocher@greyheron.com
13. Smart Cities – large efficiency opportunities
Chris Kocher kocher@greyheron.com
16. CB Insights list of 30 Construction Tech Companies
Chris Kocher kocher@greyheron.com
17. Link Monetization to Customer Value
• Better satisfy customers needs
• Improve brand image/loyalty
• Sell more of existing products
• Sell new products/services
• Increase ‘stickiness’
• Reduce churn – Increase LTV
• Create new business models
• Reach new markets
• Be more competitive
• Incent referrals
• Price differently
• Increase margins
• Find new revenue streams
•Reduce costs
•Streamline operations
•Improve efficiency
•Shorten cycle times
•Minimize downtime
•Improve safety
•Shorten supply chain
•Reduce inventory costs
•Better service levels for same cost
•Eliminate wasted time, resources
•Reduce labor costs
•Remove ‘friction’
•Reengineer operations
•Reduce customer acquisition costs
(CAC)
Cost Reduction Revenue Enhancement
Chris Kocher kocher@greyheron.com
18. Ecosystems Partnerships Are Critical
Technologies
• Semiconductors
• Chip sets
• Computers
• Software
• Apps
• Networks
• Cloud
Computing
• Big Data
• Predictive
Analytics
• Machine
Learning
• Computer
Vision
Platforms
• Internet
• IP addressing
• Cisco
• Microsoft
• Google
• Intel
• Qualcomm
• ARM
• Samsung
• Gemalto
• Citrix/Octoblu
• Raspberry Pi
• Arduino
• Alljoin
Organizations
Retail Stores
Factories
Farms
Transportation
Energy Utilities
Hospitals
Military
Industry
Associations
Universities
Governments
NGOs
Things
• Appliances
• Homes
• Buildings
• Cars
• Phones
• Machinery
• Planes
• Buses
• Fitness trackers
• Cameras
• Wind Turbines
• Oil Rigs
• Locomotives
People/Activities
• Health
• Convenience
• Travel
• Shopping
• Security
• Entertainment
• Cooking
• Sleep
• Exercise
• Work
• Planning
• Operations
Business Models - Monetization
Chris Kocher kocher@greyheron.com
19. Big Data Just Got a Lot Bigger
- merging operations technology (OT) with IT
Data ‘richness’ = better insights = more value creation
• Granularity
• Time-based: second, minute, hour…
• Types of data
• Location, temperature, acceleration, biometric…
• Formats of data:
• Numeric, text, images, video
• Shared – not locked into proprietary silos
• Accessible via dashboards, BI, apps, etc.
• Enriched with proprietary and 3rd party data:
• CRM, demographic, credit history, claims processing,
accident, government…
Chris Kocher kocher@greyheron.com
20. …And Provides New Opportunities
More customer engagement, new biz models and revenues
• Provide greater value for customers
• increase engagement, loyalty and monetization
• Identify new customer segments
• e.g. sharing economy millennials, Air BnB renters…
• Create new product /service offerings
• e.g. new policy types, new combinations
• Move into adjacent markets
• leverage ecosystem partners to enter new markets
• Price differently to increase margins/capture market share
• e.g. usage based pricing, pay-per-use, per hour, per API call…
Chris Kocher kocher@greyheron.com
21. The 4 Values (4V) Framework for Monetization
1. Vertical-
Horizontal
Integration
2. Value
Creation
3. Value
Migration
4. Value
Delivery
Systems
Chris Kocher kocher@greyheron.com
22. 1. Vertical or Horizontal Integration
Chris Kocher kocher@greyheron.com
Online bookseller…
…Or, Economic
Powerhouse
• Echo, Dot IoT Alexa voice platform
• Dash buttons
• Firestick, FireTV, Fire Phone
• Prime entertainment (videos/music)
• Amazon Prime shipping
• Kindle Readers
• eBooks
Online book seller
• eCommerce and retail
• Amazon Marketplace Platform
• Amazon Web Services (AWS- Cloud)
• Distribution logistics, shipping, drones…
• Airplane fleets, shipping companies…
Amazon is integrating
Up and Down the Stack
23. Smart beer keg…
…Or, new beverage
distribution channel
2. Value Creation
- create entirely new offerings with greater value
Chris Kocher kocher@greyheron.com
24. Smart thermostat
…Or, Trojan Horse to
enter the energy
business
3. Value Migration
- enter adjacent markets and new businesses
Chris Kocher kocher@greyheron.com
25. New taxi service
…Or, integrated delivery,
distribution and
transportation market
4. Value Delivery Systems
Chris Kocher kocher@greyheron.com
26. Key IoT Monetization Issues
Security and Privacy – an increasing threat
• More devices, more distributed, more valuable data - offers new routes
for malware to penetrate systems, expose valuable IP…
Big Data, streaming off IoT - a huge monetization opportunity
• Real time data collection and management to enable new subscription,
recurring revenue, per-use and other monetization models
Flexible, scalable products and biz models – a must
• Advanced capabilities to easily scale, provision, update and manage
software and devices through remote feature enablement
Integration with existing ecosystems for ‘whole solutions’
• Back office integration of IoT implementations with ordering,
provisioning, billing and support infrastructures
Chris Kocher kocher@greyheron.com
27. A Few Parting Words of Advice
• Start simple
• Align with customer value
• Focus on business model innovation, not just product
• Extract value from adjacent markets
• Bust internal, functional silos to build customer-focused
solutions
Chris Kocher kocher@greyheron.com
28. Thank you!
To schedule an initial consultation on your IoT strategy, contact:
kocher@greyheron.com
www.greyheron.com
https://www.linkedin.com/in/kocherchris
Chris Kocher
29. Upcoming Webcasts
BoldPM Insights: Actionable business intelligence for
executives, managers and leaders
• Intrapreneurship: How Large Companies Can Move at the Speed of a
Startup
Thu, Jun 30, 1:00 - 2:00 p.m. EDT
• 9 Things Exceptional Product Leaders Do Differently
Thu, Jul 14, 1:00 - 2:00 p.m. EDT
• Accelerating the Digitization of Your Business
Thu, Jul 28, 1:00 - 2:00 p.m. EDT
Can’t attend? Sign up anyway to receive access to video on demand. Learn more here:
bit.ly/boldpmwebcasts
30. Ask The Experts
Hector Del Castillo
Product Innovation
Consultant, BoldPM
Chris Kocher
Managing Director and
Co-Founder, Grey Heron