ICIP IoT Training: Creating IoT value

Organizations must avoid being lured Profitability from IoT products is the biggest IoT challenge facing organizations today. Value for any business is created The 10-times curse refers to how connecting anything to the internet seems to bump the price up to 10 times the traditional product price in consumer IoT but doesn’t mean that the connected device adds any IoT value. For example, a typical thermostat could cost $17, but a smart thermostat would cost $170. To make a profit, organizations must be able to justify whether a smart version of any device is worth 10 times the traditional product.

In this excerpt from the IoT-Inc. Certified IoT Professional (ICIP) training program, instructor Bruce Sinclair discusses why products that can be connected shouldn’t always be connected. Consumers might not be willing to pay 10 times the cost when the traditional version of a thermostat or any device still gets the job done.

Organizations have four options in the IoT value creation framework to add value with IoT:

1. Organizations can improve products in addition to making them smart devices.
2. Improve operational efficiency. Organizations can make the user experience better.
3. Maintain products. Organizations can use predictive maintenance for connected devices and update the product with improved software.
4. IoT opens the opportunity to create new products, not just connect traditional products to the internet.