There’s no denying that the Internet of Things has got the ability to help businesses improve their financial results and help individuals lead better lives. However, you may not have noticed that IoT had instilled a new way of thinking into business professionals. The power of IoT brought about the change in the perception of value creation, propelling IT companies to revamp their business models and pricing strategies by placing more emphasis on benefits delivered instead of products sold.
Traditionally, the vendors selling IT services usually regarded IT departments as their major customers. When it comes to IoT, this rule no longer exists. In order to secure more contracts, IoT vendors have to identify who the actual key stakeholders are. These people should be the ones benefit the most from the implementation of IoT. In the case of manufacturing industry, factory owners instead of IT departments are the intended targets. Generally, factory owners aren’t really concerned or familiar with IT infrastructure. Their primary concern would be the efficiency of assembly lines. From this point, it can be imagined that these factory owners would be interested in potential ways to make the assembly process more efficient, which means a reduction in operational costs and a boost in profit.
As a consequence, the growing presence of IoT has made IT vendors shift their focus to the value they deliver to their clients, and further leads to a usage- or result-based pricing model. MoBagel also adopted this pricing policy. Our clients are charged based on the number of devices monitored, the frequency of data collection, and the amount of information required. The inherent flexibility in MoBagel’s pricing strategy allows business owners to make the best use of their budget to achieve the greatest performance.
- Matt Weinberger. (October 27th, 2016). “This is how the ‘Internet of Things’ is changing the business model of the world’s biggest technology companies.” Business Insider. Retrieved from http://www.businessinsider.com/hewlett-packard-enterprise-cisco-schneider-electric-iot-2016-10
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