mike costa director, sales engineering flexera …...iot monetization best practices & guidance...
TRANSCRIPT
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Mike Costa
Director, Sales Engineering
Flexera Software
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IoT Monetization Best Practices
& Guidance
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Internet of Things (IoT) =
Opportunity
Challenge
Data, Data, Data …
Hardware + Software
+ Connectivity
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New Business Models
Internet of Things (IoT) =
Hardware + Software
+ Connectivity
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Monetize value by making devices more intelligent …
Driving New Business Models
Q: How important is creating
new revenue streams through
new products and services from the Industrial Internet?*
40%
34%
25% Important
Very Important
Extremely Important
*Source: World Economic Forum Industrial Internet Survey, 2014
+ Software
+ Connectivity
$ 40 $ 240
=
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Hardware Business ≠ Software Business
• Digital supply chain
• Value-based pricing
• Revenue recognition
• Recurring revenue
• Overuse & piracy
• Longer product lifecycles
• Ongoing business intelligence
• Customer self-service
Software
Monetization
Lifecycle
Order (License/Device)
Register/ Download
Activate
Configure/ Provision
Capture & Report Usage
Move/ Return
Update
Renew/ Upsell
Analyze Usage
Orders
(Direct/
Channel)
Self-Service
(Customer &
Channel Partner)
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Key Questions
How do I …
… adapt & monetize my solutions?
… protect my software from overuse?
… decide which licensing model(s) to adopt?
… deliver software to my customers?
… support scalability & rapid change at low cost?
… always provide customers with a great experience?
… get started?
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Adoption and Impact of the IoT*
Operational Efficiency• Asset utilization
• Operational cost reduction
• Worker productivity
New Products & Services• Pay-per-use
• Software-based services
• Data monetization
Outcome Economy• Pay-per-outcome
• New connected ecosystems
• Platform-enabled marketplace
Autonomous, Pull Economy• Continuous demand-sensing
• End-to-end automation
• Resource optimization
Near-Term Long-Term
…so how can software monetization help?
*Industrial Internet of Things: Unleashing the Potential of Connected Products and Services, World Economic Forum, 2015
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Operational Efficiency
• Asset utilization
• Operational cost reduction
• Worker productivity
SKU ReductionIndustrial automation firm
reduced # of manufactured
control panels, ~500 to ~5.
SOFTWARE MONETIZATION USE CASE
Adoption and Impact of the IoT*
Near-Term Long-Term
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SOFTWARE MONETIZATION USE CASE
New Products & Services
• Pay-per-use
• Software-based services
• Data monetization
Cloud-Based ServicesPower systems control &
monitoring
Adoption and Impact of the IoT*
Near-Term Long-Term
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SOFTWARE MONETIZATION USE CASE
Outcome Economy
• Pay-per-outcome
• New connected ecosystems
• Platform-enabled marketplace
Medical ProceduresMedical device manufacturer
captured per-procedure revenue.
Adoption and Impact of the IoT*
Near-Term Long-Term
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SOFTWARE MONETIZATION USE CASE
Autonomous, Pull Economy• Continuous demand-sensing
• End-to-end automation
• Resource optimization
Public Safety As-a-ServiceEntire solution as a service,
priced per police officer per year.
Adoption and Impact of the IoT*
Near-Term Long-Term
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How Do I Get Started?
Prepare …
Define …
Implement …
$
SW ►Business Opportunities
Processes & SystemsCompliance
Sales Training & Compensation
$
Sponsorship& Team
LaunchMeasure & Adapt
Go-To-Market
Software
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How Do I Get Started?
Act Quickly
Think Big Start Small
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@flexerasoftware
linkedin.com/company/flexera-software
blogs.flexerasoftware.com/ECM/
Let’s Stay in Touch!
www.flexerasoftware.com
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IoT Monetization Best Practices
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Business Goals & Requirements
Revenue Model & Commercial Intent
Compliance & Enforcement
Prospect-to-Support Systems & Processes
Go
ve
rna
nc
e
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Governance
Business Drivers
Revenue Model & Commercial Intent
Compliance & Enforcement
Prospect-to-Support Systems & Processes
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