IoT Startups Need To Consider Their Business Models
Many companies in traditional business make a product, sell it on shelves and, hopefully, make a profit. Whether it is Philips’ Hue or Parrot’s Flower Power, one can understand why technology companies are choosing the same retail approach used by food, drink and clothes manufacturers. After all, for many digital companies, Internet Of Things devices represent the first physical embodiment in the real world, following a generation in which online, intangible development reigned supreme. But connected devices are not cans of beans or sweaters, and device makers do not need to limit their products to a single, one-time purchase event more commonly associated by perishable items. Internet-connected hardware is always-on, updateable and extendable, offering far more opportunity. To multiply their revenue potential, IoT startups should aim instead for long-term value creation. Rather than selling customers a single, self-contained product and letting theirrelationship end, this means offering them the chance to engage through multiple touch points throughout an ongoing engagement. Read more…
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