LONDON, Nov. 21, 2016 /PRNewswire/ -- Connectivity enables business model innovation. Partnerships can create value and shift monetization from direct to indirect approaches and, in doing so, expand markets. Partnerships with energy providers in particular create new revenue opportunities for partners and consumers. This report outlines some of the key alternative business model options for energy providers, smart home product manufacturers, and service providers.
1.0 Executive Summary
IoT devices are projected to diffuse exponentially from their current penetration by a wide variety of sources. A frequently cited projection is from Cisco, which projects 50 billion connected devices by 2020. If these projections bear out or come anywhere close to this, there are fortunes to be made in this market. New devices are bought at some fixed price, monetized by their profit margin. The connectivity underlying those devices also provides the opportunity of developing recurring revenue streams. However, the specific methods of extracting monetary benefit from the generalized value of these types of devices are often undefined. The burgeoning IoT device prediction implies value that requires the specific application of monetization strategies in order to drive real revenues and profit for any company in the value chain. In IoT: Smart Home Business Models, Parks Associates presents examples for specific industries of ways that companies can deliver value that is quantifiable and has bottom line impact.
While the Internet of Things is becoming a reality, it is not without challenges. The types of data that will be collected and communicated are in various formats and stored in a multitude of locations. Data must
be manipulated, reported, analyzed, and visualized in order to influence the end user. Above all, the value of data must be quantified and monetized in order to have the impact that investors, executives, and customers expect. The dream of a future state where devices autonomously operate in order to make life more convenient by making resources more available and efficient is exciting, but this autonomous behavior needs to be tested, controllable, and profitable to become real.
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