This is the 3rd of a series of articles on IoT business models stemming from Don Barnetson’s sabbatical. Input and comments are welcomed. Prior articles on Hard Savings and Soft Savings.
Contemporary IoT value propositions fall into three categories – hard savings (ROI), soft savings and customer revenue growth. These categories require materially different go to market strategies and are difficult to package into a single vertical product thus it is critical that vendors identify their space clearly in advance.
Companies have two kinds of problems: Not Enough Revenue and Everything else. -- anon
Creating an IoT product with the premise of boosting customer revenue is often considered the holy grail of product management for two key reasons:
- You can drive customer executive engagement and attention to your solution and sell from the top down
- You see an opportunity to price it on a share of revenue gains – to essentially take a commission on the revenue you create for a customer.
This is the first of a series of articles on IoT business models stemming from Don Barnetson’s sabbatical. Input and comments are welcomed.
Contemporary IoT value propositions fall into three categories – hard savings (ROI), soft savings and revenue enhancement. These categories require materially different go to market strategies and are difficult to package into a single vertical product thus it is critical that vendors identify their space clearly in advance.
Hard ROI Savings
Hard savings involve curtailing an external (ie, outsourced) expense with some piece of IoT technology. The simplest example is an energy retrofit of a building which deploys technology and capital to energy expense curtailing external spend on energy with utilities.…
The Bluetooth Mesh specification was recently been published which enables standards based interoperability for lighting systems.
The design point for this specification is a discrete sensor such as a manual switch or occupancy sensor on the wall or ceiling sending information to a group of fixtures; however, in commercial lighting the trend has been to integrate controls directly into fixtures. This sensor integration creates a new set of stresses on the network in coordinating the various sensors and thus challenges the 1,000 node scalability Bluetooth Mesh claims.
Discrete vs. Embedded Sensor Lighting Systems
A discrete sensor lighting system has one set of sensors per group – typical sensors would include an occupancy sensor, an ambient light sensor for daylight harvesting and a manual switch for dimming and over-ride. …
Originally from my blog @ dbarnetson.wordpress.com
Here’s an unusual problem – how do we stop users from paying for a service that no longer exists?
We pulled TVAnytime down from the apps stores in Feb/12 and finally shut down the servers and website in May/12 when it was clear that the revenue was not funding the operating costs. However, it didn’t really have any effect on our subscription revenue streams.
We setup monthly and annual catalog subscriptions through iTunes for our Apple users and through Paypal for our Android users, as Google’s Play subscriptions weren’t ready yet.
Paypal subscriptions were always a mess – poor user experience in signing in, low execution rate as many paypal accounts don’t seem to be funding consistently – roughly 50% of subscription renewals failed.…
Originally from my blog https://dbarnetson.wordpress.com/
What the Lifecycle of TV Anytime Says About the Broader Apps Economy
When we started work on our app TV Anytime in 2010, we based it on a set of assumptions about the apps market. While we had our share of startup drama and execution issues, the underlying problem is that the apps economy has gone bankrupt for most startups in the last 18 months.
Development Costs are Rising
- Complexity: Apps that you can build in a few weeks have largely been done; the opportunities that remain are more complex, reviewers and users have high expectations in UI and quality.