HowdoyouCutawaytheIoTHypeandFindtheRevenueOpportunity?

SamColley,CEOPodsystemInc.

#IoTDevCon

www.iot-devcon.com

“Thisisthelargestgrowthinthehistoryofhumans”JanusBryzek,knownas“thefatherofsensors”

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#IoTDevCon

TheInternetofThings(IoT)hasbeenlabelled as

"thenextIndustrialRevolution"becauseitwillchangetheway

people live,work,entertain,andtravel,aswellashow

governmentsandbusinessesinteractwiththeworld.”

PaulDaugherty,chieftechnologyofficeratAccenture

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#IoTDevCon

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#IoTDevCon

Thingsconnected:

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Revenue:

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GartnerHypeCycle2015

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• Usage willbethekeydriverforIoTmonetization.

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• Don´tthink“revenue”,think“recurringrevenue”.

• Owningthecustomer isthekeytosuccess.

• MonetizingtheIoTisaboutturningproductsintoservices.

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UsagewillbethekeydriverforIoTmonetization

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WhydidGooglebuyNest?

WhyisGoProbecomingamediacompany?

OpportunitiesforgeneratingrecurringrevenueexistwithalltypesofIoTapplications.

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Don´tthink“revenue”,think“recurringrevenue”

One-offPremiumService:• Wearablemarket:e.g.Fitbit

RecurringPremiumService:• CanaryhomeSecuritydevicecharges

arecurringServicefee.

“Freemium”:• Verycommon inthemobileworld,e.g.Skype

orFreedomPop.

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Creatingasubscriptionserviceinaproductbasedcompanyisnoteasy.

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Whatchangesneedtobemadetomovefromaproducttoaserviceorientedcompany?

• Itrequiresacompletechangeinbusinessmodel.

• Thebilling structureandmethodology isdifferent.

• Itaffectscompanystructureandresources.

• Thesolutionmustbefuture-proofed.• Requiresflexibility torespond tochangingcustomer

demands.

MonetizingtheIoT isaboutturningproductsintoservices

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• TheessentialelementsofanIoTapplicationarehardware,software,connectivity.

- Hardware isanon-starterintermsofongoingrevenue.

- Applications canbedevelopedaroundthedevicethatcanbe

monetized.

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Owningthecustomeristhekeytosuccess:

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- Whataboutconnectivity?

• Manyconsumerapplicationsbasedonwi-fi,Bluetooth.

• Thereforethecustomerisownedbythefixed/cellular provider.

• WhataboutB2Bapplications?E.g.manufacturing,agriculture,energy,

connectedca

• Thesehaveabuilt-insubscriptionservice:cellulardata.

• Whatifyoucouldownthecustomerthroughthecellulardatasubscription?

Owningthecustomeristhekeytosuccess:

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Whatdoyouneedtoenablethisprocess?

• Whitelabelconnectivityplatform:providesconnectivity,monitoring, billing, devicemanagement,support, analytics.

• Partnership withaspecialistIoTconnectivityprovidergivesyoulong termsecurity.

• Opportunities toprovideanalyticsandprofit fromtheusageofyourapplication.

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• TakingGPStrackingtoanewlevelbyintegratingwithemergingtechnologies.

• Developmentofanewgenerationofdevicesandapplicationsdesignedtoincreaseproductivityandefficiency,minimiseaccidents,improvesafety.

• Changeinbusinessmodelfromhardware+softwareplayertofullrecurringrevenuesolution.

• Valueaddedserviceslayeredontope.g.reportsthataddvalueforthecustomerandfinancialvalueforthecompany.

• Byincorporatingmoreintothesolutionthelongtermvalueisincreasedforboththecompanyandthecustomer.

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Casestudy:FlexGPS

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SamColleyCEOPodsystem Group

• Skype:sam.colley1

• Cell:+14157285899

• Direct USA: +14157070500

• sam.colley@podsystem.com

• www.podsystemm2m.com

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