7 assets to create an IoT mind shift in your company
Applications for IoT seem to be limitless. However, it is a challenge to get the required ecosystem and switch to a new kind of sales (f.e. pay per use, subscription based …) to work harmoniously in order to generate revenues will be challenging. This requires thorough changes in your company, competences and capabilities covering product management and R&D. You should keep these 7 company assets in mind to implement IoT successfully.
Keep these company assets in mind to implement IoT successfully
1. Take the challenge
Is your team ready to take the risk? What is required to deviate your existing innovation methods and incremental innovation thinking? Monetized IoT applications are new for the world, not only for you. They combine innovation in new markets with new technology, new customers, new revenue models … and force you to take the challenge.
2. Interact with the end user
End users want services which really impacts their quality of life. This might be difficult to translate to your current hardware product. Maybe your products are currently missing interaction with the ‘end user’ because they are installed in a building, a house or used in hospitals. There even might be no interaction besides the sales moment. So how do you get access, collect and analyze this type of information?
3. Target your users in new ways
If you look at the quality of life impacting IoT products for end users, it will probably require new ways of targeting the users compared to your current market segments. Maybe the new customers of your data feeds won’t be the end user but other companies? How can you start thinking about the partners you need and the ecosystem you want to establish? Are you familiar with data brokers who allow the sales of your data?
4. Use other methods to get new user insights
Are you prepared to switch your current way of mapping and analyzing ‘user interaction’ and ‘value creation’? Hardware products have other user interactions and ways of creating value than software products or services. Therefore it will probably be required to start envisioning complete different user interactions with your data product using other methods and service design thinking to grasp these new user insights.
5. Add value continuously to keep users attracted
Hardware products are focused on the most important user interaction: the sales moment. That’s why the differentiation strategy concentrates on that kind of features. With IoT-enabled products or data feeds, we should be thinking about subscription based fees. This requires a renewed value during each period of use. Adding or changing features over time will be a condition in order to keep users attracted and motivated to continue their subscriptions. The end user’s desire for new stuff requires you to add features and value continuously.
6. Look at your competitors in the IoT world
If someone is your competitor today, he might be looking for IoT-based propositions to create a new value. Since this proposition might not be on the market yet, it is not possible to start a benchmark and create a better or equal product. On the other hand, the data your product is generating might also be offered from a complete different corner. An other product might not be competitive on hardware level, but from the data level they might provide equal, better or cheaper information through the same or other market channels.
7. Adapt your teams to manage data feeds
Currently your product needs human based services to be installed, configured, repaired and maintained. The way these interactions with the hardware device take place, is defined by your company (the way the product is designed). In the business of IoT, your ecosystem will probably not only include your data, but also data from third parties and other IoT devices. You don’t have control over this data so you need to adapt your teams to manage this. Or you might need to connect with other data feeds in advance to be able to deliver value.
Start building a vision on connected products
Do you have the appropriate product management and R&D process tools and knowledge? We don’t think we have to convince you to start to look at IoT as an enabler to solve fundamental problems in your business. However, is it clear that you should start building a vision on your connected products of the future? Getting into the IoT arena might require to take a risk by engaging into all these new competences, disciplines, customers and ecosystems.
In order to be successful with your IoT project, you should probably ask how to take this innovative road in the most effective way. A carefully planned road map might be very useful to plan your next revenue generating innovations. Those who attended one of the IoT workshops at Verhaert, already had a preview on how to create a mind shift in your company. Need more information? We are always looking forward to maximize the innovation potential in your company.