Monetization Strategies For The Internet Of Things
Transcript of Monetization Strategies For The Internet Of Things
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Mone4za4on in the Age of IoT
Tom Dibble, CEO
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Mone4za4on in the Age of IoT
Tom Dibble CEO, Aria Systems
@tom_dibble
@ariasystemsinc tdibble@ariasystems
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The Looming Opportunity: Internet of Things
Military Agriculture
Environmental
Consumer
Retail
Industrial
Medical
Automo4ve • Product tracking • Inventory control • Focused marke4ng
• Wearable devices • Implanted devices • Telehealth services
• Resource alloca4on • Threat analysis • Troop monitoring
• Crop management • Soil analysis
• Species tracking • Weather predic4on • Resource management
• Parking • Traffic flow • An4-‐theT loca4on
• SmartMeters • Wear-‐out sensing • Manufacturing control • Climate control
• Smart home control (ligh4ng, security, comfort)
• Op4mized energy use • Maintenance
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Bigger than Smartphones, Tablets, PCs (combined)
Source: Gartner (November 2013)
Shipments in 2020 (Millions)
Figure 2. Internet of Very Different Things
Hotel Door Locks
16000
14000
12000
1000
8000
6000
4000
2000
0
Parking Meters
Vending Machines
Remote Pa4ent-‐Monitoring Nodes
Toys
Smart Meters
Security Cameras
Indoor LED Ligh4ng
Smoke Alarms
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IoT creates an explosion of data, devices and opportunity
– Peter Middleton, Gartner, Dec 2013
“…many categories of connected things in 2020 don’t yet exist. As product designers dream up ways to exploit the inherent connec4vity that will be offered in intelligent products, we expect the variety of devices offered to explode.”
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How big will it be?
• The Google effect: “...Google is installing extremely fast gigabit internet infrastructure when the average person needs 200x less speed because of IoT...” • – Daily Infographic, March 2014
>50 Billion Devices By 2020
How big is your guess?
$7.1 Trillion
– IDC
“… those billions of smart, connected gadgets such as Google’s smart glasses… should generate a staggering $7.1 trillion in annual sales by 2020.“
– IDC , June 2014
“Cisco’s Internet of Things Group (IoTG) predicts there will be over 50 billion connected devices by 2020.”
– Cisco , November 2013
The Google effect: “...Google is installing extremely fast gigabit internet infrastructure when the average person needs 200x less speed because of IoT...” – Daily Infographic, March 2014
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Delays are costly Profi
t
Time
AUP Erosion
Shorter Peak Profitability Window
Scheduled Launch
Launch Delay
AUP Erosion Example: iTunes $.99 Walmart $.55 RCN $.?? Verizon $.??
Product EOL
Product lifecycle End-‐of-‐Life (EOL) date doesn’t change
Creates early and unrecoverable sales losses
Erodes Average Unit Price (AUP) over the en4re product lifecycle
Shortens the window for peak profitability
DELAY
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The Mone4za4on of Things (MoT) is not about:
Device
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The Mone4za4on of Things (MoT) is not about:
Device
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Selling is Different
Managing Customers is Different
ReporPng is Different
InnovaPon Increases
It’s a whole new ball game
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• Freemium • 30 Day Trials • n Day Trials • By Segment
Mul4ple Geos/
Markets
Mul4ple Sales Models
Excep4ons: Discounts & Credits
Pricing, Packaging, Bundles
Contract Changes
Enabling unlimited, complex mone4za4on models
Consump4on
Subscrip4on
Occasional / On-‐Demand
• Flat Rate • Standard Tiered • Volume Tiered • Flat Rate Tiered • High water mark • Accumulated pooling • Threshold • Rollover • Family plans • Overage • Pay-‐as-‐you-‐go • Time based • Mediated/rated • Combina4ons
• E-‐commerce • Indirect • Direct
• Upgrades • Downgrades • Cancela4ons • Pro-‐ra4on • Trials • Dunning
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Requirement for compe44ve advantage
All Contents © 2014 Aria Systems
“Today’s hyper-‐compe44ve business climate requires flexible, configurable billing soluPons that can handle a wide-‐variety of consumpPon and subscripPon-‐based business models – and the ability to change them, quickly and without IT intervenPon.”
– Andrew M. Dailey, MGI Research (source: Forbes 3/18/14)
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A compe44ve tool to beter serve your customers
RelaPonship Commerce
AcPve OrchestraPon
Enterprise Cloud
AdapPve Selling
Single Customer View
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Make More Money • Op4mizing the life4me value of customer rela4onships
• Keep the business growing and valued
Solve Big Problems • Handles scale and complexity, security, reliability, compliance
• High performance opera4on
Keep Customers Engaged • Delivering a consistent high-‐quality customer experience
• Customer informa4on always presented in context
Manage Things More Easily • It’s in the Cloud! • Pushes informa4on • No rip and replace
Mone4zing IoT the Right Way Will...
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Q&A