Experts are predicting that by 2020, more than 50 billion connected devices will be dating each other. By the end of 2017, more than 90 million people will be resting inside their smart homes. A whole revolution is going to happen in the businesses, in the the society, in the daily life of you and me. By 2020 IoT solutions can generate $7.1 trillion. People are saying that the so, so sweet chemistry of devices with each other will definitely lead us to somewhere more exciting! From long back lot of my readers were asking about monetizing internet of things. So I thought why not better come out with a post on ways of monetizing internet of things.
As per W. Roy Schulte-Vice President of Gartner “ Uses of IoT that were previously impractical will increasingly become practical.”
As per a press release issued by Gartner 2 days ago, by 2020 more than 50% of the important fresh businesses will be using some element of internet of things into their system! Role of IoT in our lives and in running businesses is going to increase rapidly. Reason is very precise. The cost of embedding sensors and pertaining software into the physicals devices and bringing them on the network is continuously decreasing.
New Ways of Monetizing Internet of Things
Latest forecast by Gartner says that there will be an additional $309 billion revenue opportunity for IoT suppliers. A large chunk of it will go to those engaged in providing services. So IoT has the massive potential to change the way we live, the way we work and the way we carry on our businesses. Reach of IoT has entered into every industry. But it is untrue to say that every application will be thoroughly IoT based. It can also happen that all applications won’t be using IoT in totality. Instead the number of applications that will clout IoT in its uses will be more. Whether they will will use it to execute small part or large chunk of their processes is a different story altogether. .
Till yet we were discussing about the future business potential of IoT. Now it’s the time to discuss about how to tap those potentials and monetize them. Lets us start with some innovative ways of monetizing internet of things;
How to Make Money from IoT?
If I would have been in your place, the first thing that will strike in my mind is, “ how should I search for business in IoT?” The question itself is very abstract. So its answer can’t go very far away from it!
Unlike previous facets of technology, internet of things is a bundle of various platforms, concepts and several devices working in cohesion with each other under one ecosystem for a common objective. Their common objective is to understand the business processes better, to analyze the business data in depth, to understand the customer’s’ requirements in a better way and bring the necessary changes in the services provided to clients. So IoT is not something like a piece of hot cake which you can directly offer to clients in their plate. It’s a convergence of different types of services, platforms and numerous devices. You will have to search for the requirements of such services, platforms and devices in corporate where internet of things implementation is under consideration. You can also contact such companies where IoT is already under implementation.
This is where the process of monetizing internet of things will initiate. One single vendor can’t handle all the fronts of an IoT system implementation as different fronts in IoT require different skills and competencies. You have to understand your role and fit yourself in the IoT arena. So start analyzing your competencies and skills and start monetizing internet of things. Think about the roles which you can take handsomely! Start making inroads in corporates. Nurture a wonderful professional relationship in companies. Understand their business processes. Try to find out the problems undergoing there. Come out with a solution. Place your suggestions and solutions in front of the management. I am sure they will listen to you. At the end, everybody wants to get rid of their problems.Guys, one word of caution! Please don’t try to overplay the problems! Otherwise your business ethics will come under dark clouds!
First task should be nailing down the number and names of industries which are already using IoT in their business processes. No need to explore new areas as it will be a criminal waste of time. Better be prepared with a proper business letter which can easily clean bold anyone.That will be your first step towards monetizing internet of things.
Where is business and Money in IoT?
This is the most often asked question these days. There are different components of IoT, such as services, platforms, virtual objects, physical devices which we refer as ‘things’ in internet of things, actuators, sensors, networks, smart analysis, smart actions and human beings for monitoring the IoT Systems via apps. Readers, usually ask me, whether they should undertake hardware or software, business in Internet of things. My straight answer to them is neither hardware nor software.
Guys, money lies somewhere in between these two. IoT Money is hidden there. Better concentrate on these ways for monetizing internet of things. Here goes the 5 different ways of monetizing internet of things:
- Integration services in IoT Implementation.
- Undertake tasks of predictive maintenance nature; tasks which can prevent downfall or machine failure, suggest ideal timings for faulty parts replacements in factories so that production won’t get affected.
- Risk Assessment tasks; if your interest is in actuarial science, then nothing great like it. In the coming future, huge number of IoT jobs will be based on risk assessment.
- Concentrate on skills and competencies which focusses on increasing efficiencies.
- Retailing of IoT products
There can be numerous small IoT tasks like these which you can self observe once you enter into the system and start monetizing internet of things.
Businesses Involved in IoT Implementation can eventually become Giant
The problems is that whenever people think about the starting IoT based start up, they immediately start thinking about manufacturing IoT products. If someone has capital and the required competencies to develop an IoT Products then nothing great like that. But what if you don’t have the required capital?
What I mean to say is that IoT Products are not the only way to make money from Internet of things. With growing opportunities, money is everywhere. Flip a thinking hat over your head and start exploring money making opportunities! As I wrote earlier hardware and software- these are the two main components of IoT. Big players have already drenched themselves thoroughly into the deep water of it.
There’s no denying the fact that there is huge money in IoT Products. But IoT products are mainly hardware devices in small size and that is a volume game. China is already hero in volume game! Then what can you do? You can buy the ready made parts and assemble. You can create software applications to manage such devices. But crafting big software applications again is a game of big players. They have already ready-made software solutions in their hands. They will tweak it little bit and jump into market and finally they will displace you. Giant companies have unlimited capital and human resources and no doubt some of the sharpest minds of the world in their pockets!
You might think how much pessimistic mind I have. Guys, it’s always better to nail down the negatives first. What do you think? Readers, This was just the first side of the wall. So no need to throw water on your dreams. The other part of the story is still there to play!
We all know that no one can handle a show single handedly. Same is true about these big IoT Players. They will require help from different small vendors who can render them services in bits and pieces. Watch and observe where they need some help. Go and fit yourself in that particular domain. instead of making huge software solutions, you can make and provide software in pieces- which is better called as modules. You can provide services to big players. You can help them in setting the IoT Infrastructure.
When there will be millions of connected devices in the world, then somebody should be there to maintain them. Again Giant IoT companies can’t do it alone. Think in that direction. You can build a team of engineers- electronic plus software engineers who are agnostic about that particular type of devices or services. Here I will like to remember one scene from an old Hollywood Movie in which the Hero goes bankrupt. Then he stands on the road with a slogan on the board,”I can almost repair everything in your house”.
In case you think that jack of all and master of none is not going to work then sorry to say that in today’s age this saying has lost its relevancy. There is no doubt that specialist are specialist and they will be required aggressively in any age. What I mean to say is that if you can’t become a specialist then there is no harm in becoming jack of all trades! After all this generation is running behind all rounders. You can create contacts with several types of vendors who are specialist in their skills. You can facilitate their services to others. Or else you can go on freelancing sites like Up work, Peoples per Hour, Guru.com and freelancers.com and create your own virtual work team. For those who want to start IoT Start-up- Systems Integration is the best area.
IoT devices is going to create a huge amount of data in the coming future. Think about the amount of data that those 50 billion devices are going to create. Who will maintain it? Data analytic firms are not going to jump from the sky to read such data. Guys, seriously talking, it’s people like you who will create those firms. Just you have to think in that direction and do the necessary things for that.
First of all think about how much initial capital you have in your hands. How much additional money you can raise through investors. To raise funding from investors, you need to have a solid product idea. Make a complete business plan. Be ready with a killer presentation. Systems and data security is a again a very important pillar of IoT business.You can think about venturing in that area.
My Readers, I always keep on researching for latest information and updates related to Internet of Things. So that I can bring it to you at the earliest. I always try to be free and fair with the information that I provide here. In case you find any information or updates in this post which is not near to truth then as usual again here I request you all to correct me. As Readers, you are my Guide and best judges too.
Try to implement the different ways of monetizing internet of things that I have mentioned above. See whether it clicks for you not. And for sure share with me if they work! Now it’s the time to say bye to you all! But with one small request; Friends if you enjoyed reading this post, then do share it with your friends on Facebook, LinkedIn, Twitter, G+ and any other social platforms of your choice! I will like quote a beautiful line of Margaret Fuller here;
“If you have knowledge, let others light their candles in it.”
Thanks to all of you!
Stay blessed! I will be back soon with a nice post!