According to estimates, 26 billion connected devices will be in homes and businesses by 2020. The Internet of Things (IoT), could have an economic impact of up $11.1 trillion per year by 2025. While still in its infancy, connected devices are quickly becoming the norm. The IoTis already having a significant impact on the creation and distribution of new products and services in verticals such as transport, telecom, and health care.
As IoT adoption continues to rise over the next few decades, companies will have new opportunities to track and measure how customers consume products and services. To generate revenue from IoT, companies will need to transform data from connected smart products into services.
1. New Products and Services
You can use the collected data to improve the customer experience and help develop new products and services.
The IoT should be used by businesses to provide value to customers through streamlining processes, improving services’ reliability and reducing customer experience pain points. This can be done by companies looking at data from connected devices and creating new products or services to fill in gaps in the market.
International Asset Systems (IAS) is one example. It’s the provider of the largest intermodal information network in the world. IAS developed a tracking and day-lease bill solution that could handle the daily service volume so customers could put their assets into use. This application allows IAS to manage event and rental transaction management as well as customer provisioning. Companies were able to monetize IoT and provide value to their customers and employees by using the information IAS had from connected devices.
2. SaaS Platforms
SaaS platforms are ideal for companies that want to monetize the IoT. They offer flexibility and can be customized to fit IoTbusiness models. SaaS platforms allow companies to capture, analyze, and quantify the huge amount of data generated from connected devices. They also provide agility. SaaS platforms can be deployed quickly across multiple industries and can be used in real-time to enable agile monetization solutions. They are flexible, extensible, configurable, and scalable. A flexible and agile SaaS platform is essential for companies who want to seamlessly bill transactions and recognise the revenue.
3. Billing Platforms
Mistakes are costly — partnerwithexperienced, agile billing platform providers with deep domain experience.
Multiple billing options are available to companies when it comes to monetizing IoT. These include subscription, tiered, threshold, rules-based, and usage-based billing scenarios. Many market segments are highly regulated, and subject to both internal audits and external audits.
Companies should seek out experienced, agile billing platform providers to maintain compliance and avoid being subject to legal action by investors or customers. They will be able to help ensure that revenue is not delayed and that the process is done correctly. These providers should offer flexibility in packaging and pricing, as well as billing on a prepaid, postpaid, or hybrid basis to allow companies to provide outstanding customer service in rapidly changing markets.
4. Monitoring and Measuring
You will need to decide what you will measure and how you will monitor transactions.
Companies must ensure that they are measuring and monitoring the correct information in order to effectively monetize IoT. With the correctIoTbilling engine in place, usage data from smart, connected products can be transformed intomonetizableevents (being rated in real time) to support pricing models onIoT-enabled products and services.
Communicate with your customers about changes.
We live in a customer-centric society. Customers must be satisfied.
Information about changes that could have an immediate impact on the customer’s experience with the company is provided. Companies can use the IoT’s granular data to create new monetization models that simplify processes and improve customer experience. The company should share the changes to the IoT billing platform with customers to highlight how they will improve their overall experience.
Source: IT Business EdgeMore Links
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