How to Get the Most Out of IoT Device Monetization
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Do you remember what the devices were like 10 years ago?
They performed a limited number of functions, were updated manually, and were isolated from each other. The IoT era revolutionized this area. Now companies can control their hardware remotely, create complicated equipment ecosystems, receive valuable data, and do other previously unimaginable things.
Agree, it is a sin not to use such opportunities. So, we bet you have an idea of how to monetize your devices. It's time to consider how you can transform it into an efficient result 57% faster.
Efficient Device Management Can Bring You a…
Where do innovations begin, if not with the question: "Why?" The benefits of monetizing devices seem obvious:
1. Introduction of new business models and development of new revenue streams
IoT helps companies to earn without any cents from customers. For example, construction and real estate companies or social media platforms. Okay-okay, in the first case, they should sell a facility, IoT devices & software before it.
But what's next? How do enterprises continue to increase their income due to IoT?
Users pay for free services with their data. The Internet of Things allows enterprises to collect valuable information and sell it to retailers, telecom providers, etc. This way, companies boost their business models, and collected data bring commercial value to each engaged entity.
There is one more way to expand revenue streams with IoT. It’s obvious - to turn free services into paid.
Recently, XME.digital specialists cooperated with a global software vendor serving over 1 million smart houses worldwide. The client needed to monetize its firmware service. Together, we have managed to develop a new source of income and create a new business model.
“It is arduous to find a ready-made product that allows a customer to act as a manufacturer and a service provider simultaneously”, says Victor Kmita, CEO at XME.digital. “The fast code platform has become a suitable base for such one-stop solution creation. We were able to build unique processes, launch a robust firmware service in half the time, leave the customer satisfied and continue our fruitful cooperation. I suppose it's a success.”
2. The centralized remote control
Imagine you have launched devices for currency checking. If a client has an issue with the produced device, you need to provide the on-site setup. It means additional staff work, travel expenses, etc. Some sort of product, like the AWS IoT platform, can help you configure, update and repair hardware remotely. As a result, the client gets a flawless experience and confidence in the performance of its device. In turn, you reduce costs for maintenance and receive a satisfied audience. Everyone is happy.
3. Efficient data processing & predictive analytics
IoT device management platform capable of providing accurate reporting data on product usage in real-time. Based on it, Data Scientists build AI data models able to analyze and predict events. It helps shadow client behaviour, identify system errors and even save lives. Accurate, in time information opens lots of opportunities. It allows them to boost marketing campaigns, make more valuable offers to customers, prevent downtime and show all the details of hardware operation.
For this purpose, the equipment manufacturer Flowserve began using the ThingWorx IoT platform by PTC. It needed to monitor the pumps which failure leads to system downtime. The company had to provide a prompt response to such issues because of the potential losses of its clients.
According to Aric Zurek, VP at Flowserve, “If the issue is not resolved within half an hour, the downtime will cost the customer $ 1.6 mln. If it is not resolved in 45 minutes to an hour, the impact could have been $ 16 mln or more.”
How to Design IoT Device Management Platform with XME: Guideline
“XME.platform greatly simplifies device monetization process. The team can use a ready-made technical base and templates, which remain to be changed following specific requirements. Accordingly, a customer can get a full-fledged complex prototype and test the idea's validity. The fast code platform it's not only about ease of development but also about ease of maintenance. We can update the product in a matter of hours and provide accurate statistics of its work at the client's request.” Lidiia Kozina, Business Analyst at XME.digital
Think about what a typical development cycle consists of. The idea - requirements formation - architecture building - evaluation - budgeting - IoT platform development - its testing - deployment. Everyone lived happily ever after, right?
Well, not so fast. Since device monetization is not the easiest thing to do, you will have to work hard. Challenges are encountered at almost every stage. But anyway, you can simplify it using the fast code platform. Let's skip all preparation procedures and consider what the development stage would look like in this case.
Template configuration. The first good news: you shouldn't worry about the development from scratch. We took care of the technical component. So you can use the experience of other companies. You have unlimited right to transform the built-in set of templates, applying a popular tech stack. As seen, you will receive custom, open-source results using the low code platform work principle.
Building integrations and services. The power of IoT device management platform at integration points. It is crucial to ensure seamless interaction of the new system and existing components. Moreover, a robust product always integrates easily with third parties if the business requires it. For example, we built integration points with SAP, PFM (Product File Management), Git/Gerrit, CIM, and IDM providers to create a firmware service.
MVP creation. Due to the prototype, the business can test its hypothesis for compliance with market conditions. The sooner it happens, the less risk the investment will not pay off. The fast code platform allows you to create full-fledged MVPs in 2-4 weeks, depending on the development complexity. So, you can check the idea's validity almost from the beginning.
MVP testing. It's time to make sure your hypothesis works. Get ready for constructive criticism from users. The more recommendations you get here, the better product you will launch.
Prototype improvement. One of the most enjoyable benefits of using XME. fast code platform is a flexible prototype. After MVP testing, you don't need to create a product from scratch to make the system perfect. It is enough to configure the initial result. This approach reduces the time-to-market period and minimizes costs.
Following forecasts, the global IoT market will grow from $916.9 bn in 2020 to $1994.3 bn in 2029. The rapid growth in IoT popularity will lead to the fact that device monetization will become commonplace. But whether it will be as effective as it now remains to be seen. So you should hurry.
Do not be afraid of the monetizing devices process. Due to the XME.fast code platform, you can cope with it in 7+ months, depending on product complexity. It is half faster and more profitable than developing from scratch.
Are you ready to be one step closer to your ultimate digital transformation goal? If so, drop us a line and discover how to use IoT device monetization benefits for your flavour.