This is the 2nd of a series of articles on IoT business models stemming from Don Barnetson’s sabbatical. Input and comments are welcomed. First Article available here.
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.
Soft Savings
Soft savings involve curtailing internal (ie, non-outsourced) costs via an IoT technology deployment. The most common examples are technologies that improve employee satisfaction and wellness – while the potential savings of making employees x% more efficient are very material, there is not typically a firm way to close the loop and prove the benefit.