IoT’s Blueprint for Creating Business Value
IoT Inc. is the definitive guide to the Internet of Things for business minded professionals. It covers all the technical aspects you would expect but more importantly delves deep into the business value of the IoT. The book clearly explains how products, platforms, and ecosystems work together to create the Outcomes Economy that will ultimately yield the "trillion-dollar market-size projections typically attributed to the Internet of Things". REFERENCE: IoT Inc: How Your Company Can Use the Internet of Things to Win in the Outcome Economy by Bruce Sinclair
- IoT Inc. starts with and goes deep on the topics near and dear to business manager’s heart…business value, monetization, and strategy. Frankly, by first establishing the value proposition in these key areas…the technology aspects of IoT make a hell of a lot more sense.
- In Digital Transformation circles most folks agree that it is Business Models not Products that drive true competitive advantages. IoT Inc. gives great detail for each model and the advantages specific to the IoT on a journey through the “IoT Business Model Continuum”.
- IoT Business Models
- Product Only: safe starting point, IoT augments functionality.
- Product-Service: ex. adding information service from collected data increases value.
- Service: ex. Rolls-Royce jet engines, customers down’t want to own and maintain jet engines, they want propulsion for their planes. Trade a huge capital expense for recurring fee.
- Service-Outcome: seller becomes a business partner. ex. improve efficiency of a large turbine wind farm and share the upside.
- Outcomes: king of IoT business models, pays out based on improving the P&L. ex. John Deere & AGCO…”these competing ecosystems bring together farming machinery, seed management, irrigation, and weather data to sell farmers outcomes of higher crop yields at lower costs”.
- IoT Inc. explores the IoT’s operational changes that affect every department:
- Engineering – All efforts that create Intellectual Property (IP) should be moved in-house
- Data – Data science and analytics will become fundamental to all industries.
- Manufacturing – gets folded into engineering because of software/hardware connection
- Business Development – leverages a new view into customer’s product usage
- HR – hire new titles. IoT full-stack developers are a prize.
- Legal – data privacy.
- IoT Inc. is not a technical manual but in my opinion it does a nice job with it’s explanation of the technical stuff…covering sensors, embedded systems, software, cloud and even APIs to drive additional value from IoT ecosystems.
IoT Inc. How Your Company Can Use the Internet of Things to Win in the Outcome Economy is the first of it’s kind to uncover every stone as it relates to the Business Value of IoT. I fully concur with Bruce as he states, “IoT’s greatest challenge isn’t technical; it’s business”. Within it’s pages, company leaders will find a practical guide and blueprint for creating business value with IoT and yes…making money!
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