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Connect your things, solve problems, make money. Learn how you can deliver recurring, continuous value with these six IoT business models.
According to the McKinsey Global Institute, IoT will have a total potential impact of up to $11.1 trillion a year by 2025. With so much opportunity, it makes sense why so many companies are looking to connect their devices and enter the IoT arena.
But simply adding an internet connection to your widget doesn’t mean your business will make immediate profits. IoT products come with significant ongoing costs – web infrastructure, networking, and other connectivity and data-related costs. If you can’t justify the additional value to your customers, those costs will eat away at your margins.
The most successful IoT products are those that deliver recurring, continuous value for your customers (and recurring revenue for you). While there are a lot of ways that companies can create value through connected products, we’ve found that there are six different primary ways companies make money off of their IoT products
1. Tracking your assets
2. Preventing machine failures and maintenance issues
3. Reduce the overhead of staying compliant
4. Fulfilling consumables
5. Managing the environment
6. Upselling a premium product
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