To Monetize IoT, Open the Black Box of Business

IoT Monetization

It’s scary when you think about how much business today runs on hope. We hope customers like the products we build. We hope customers are able to install them correctly. We hope they actively use them. We hope they don’t break down. For device manufacturers who make “things”, this hope introduces a high business risk. And yet, they have learnt to live with it. They accept aspects of business that operate like a black box where they simply do not have any visibility. Device manufacturers – whether targeting home, buildings, or industrial – looking to connect their products to the internet can open these black boxes and tap into into new revenue and optimization opportunities.

IoT enables you to peek inside

The Internet of Things (IoT) enables device manufacturers to connect their devices to the internet and realize value from the data. With IoT, device makers no longer have to rely on a “sell and forget” model and hope everything works out. Instead, they can move to a “connect and improve” model, where they have direct visibility into how their products perform and how their customers use them. They can use this data to predict when their products are likely to fail and prioritize the features that will accelerate future adoption. It’s this additional instrumentation – when customers first start using the product, which features they use, how they use it – that opens the black box and presents new monetization opportunities.

To monetize IoT, think about which black box you want to open

Take predictive maintenance – everyone’s favorite IoT use case these days. Predictive maintenance becomes possible when you open up the black box of how customers are using your product and how the device functions over time.

Only when you open this black box can you automate routine monitoring (no need to send someone on a regular schedule). You can send a technician only if the product is showing signs of failure, and then rely on the technician to fix more complex tasks and advise customers on how best to use their product. Optimizing service delivery offers many benefits: avoiding sending technicians when they aren’t needed saves costs, advising customers on improving usage increases customer satisfaction, and selling new subscription services (think service packages we see for our cars) increases revenue.

To monetize IoT, look carefully at your business and identify the black boxes, which if opened, will offer the best returns. Then start with a narrow use case where you can quantify the results. Once proven, scale up quickly to realize more benefits.

Easier said than done

While the promise of IoT opening black boxes is huge, getting IoT right is hard. IoT is inherently complex – an IoT solution spans hardware, software, cloud, security, applications, and big data analytics. This is in addition to the complexities of good product design.

And without getting it right, you can’t monetize IoT.

At Samsung, we built the ARTIK IoT platform because we wanted to help device manufacturers speed up the delivery of their IoT products and services. The Samsung ARTIK IoT platform integrates all the key capabilities required for IoT into easy to use and open APIs, SDKs, and tools.

By offering an integrated platform that includes hardware modules, software, cloud, security, and a partner ecosystem, and hiding all the complexity underneath our enterprise-grade APIs, we’re making it easy for device manufacturers to open the black box of business and start monetizing IoT.

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