Examining IoT Business Models Report
Key takeaways from the IoTUK report ‘Examining IoT Business Models’
- Value realisation lies at the heart of any business model.
- There are many different potential IoT business models.
- Some IoT business models point to a specific way of charging, some support different income models.
- Current business models fall into two broad classes: improving processes and creating new value.
- Different business models will be applied within the IoT ecosystem.
The IoT is built on a complex ecosystem. There are a host of different technology providers vying for a share of the revenue that the adoption of IoT is expected to drive. One of the toughest issues that companies developing IoT solutions face is choosing the right business model, or the right blend of business models to adopt.
The key to understanding today’s IoT business models, and how they will evolve lies in recognising the point at which the “value” of an IoT deployment is realised. This is true whether that value is expressed in economic terms with improved margins and lower costs, or through competitive differentiation with the ability to offer new value to customers.
There is no single canonical business model for the IoT, and implementers of IoT solutions will have to consider carefully where their product, service, or solution sits within the IoT value-chain, and how and where the consumers of their offering will derive value from it in order to determine the right business model for their proposition.
Digital Catapult, as part of the IoTUK programme, have analysed the range of business models that are currently emerging in the sector. Read our report, ‘Examining IoT Business Models’ by clicking the button below, to discover our findings.