Panel Discusses How To Generate Revenue With IoT Programs
APP-SOLUTELY IoT: How to Generate Revenue with IoT Panel
Panelist’s cut through the hype and show you how to generate revenue by deploying and offering enterprise-grade IoT programs, solutions, and consumer-focused products.
To monetize IoT programs, companies must understand why it is so difficult to do and to create a successful, viable and measurable business plan suited for IoT. T-Mobile’s Karl Burns said opportunities are seen through traditional business model lenses, but with IoT disrupting the market, models may not apply or need to be adapted. Carriers have very traditional models, but with new ideas coming forward, the learning process is continuous for companies. A good amount of business models are long-term oriented and need mass and scale for something sizable to resell. This timely process requires companies to be patient. Moadas Systems’ Joel Urano said a challenge to new players, when looking at IoT strategy, is overlooking issues that could come up, like the cost of taxation and regulatory compliance. The sexy part of IoT is putting the connectivity and platform together, but compliance part is not optional and not always as fun. Companies shouldn’t go-to-market and not consider the cost of compliance.
Mike Lawlor from USA Technologies, a company that incorporates IoT programs with vending and kiosks, said going cashless is more common; it is no longer the exception. Connecting machines allows companies to collect information about users, increasing revenue 20-25% and reducing the cost of running the business. Jason Ashton, president of Call Pass Tech, said the challenge to monetizing IoT programs comes from education, acceptance, and timing. Companies need to understand where and how to make money, which all depends on the customer. Companies have trigger points, issues that take place — and then they act. They may not know solutions exist, especially if IoT is seen more as a buzzword. Are they timing the phone call right? Is there an “a-ha” moment? Can you demonstrate you have a solution for a program that hasn’t arisen yet?
Jason Ashton uses an example of the pine straw industry utilizing IoT programs, such as tracking trailers and deliveries in real-time. The business operates more efficiently. What started off as a very simple use case with added IoT solutions became about increased revenue, and not just about controlling losses.
Joel Urano said companies should be aware of costs related to non-compliance with tax authority and jurisdiction. If companies are caught being purposely non-compliant, huge costs are associated. But if companies come clean or make a mistake, there are much better results. To ensure compliance, companies should not rely on a general CPA. They should find someone with specific telecommunications experience. For companies entering the space, from the beginning, they should find a telecommunications CPA and attorney. It is cheaper to get it right out of the gate versus cleaning up a mess later on.
Karl Burns said T-Mobile hopes to transform the wireless industry, creating and unlocking value from all parts of the chain. Part of this involves the energy utility space, where their network is creating a win-win situation for energy companies and consumers. By linking appliances and energy companies, the amount of wasted energy can be reduced. Learning information from consumers allows the network to monitor when energy can be preserved, which saves money for energy companies that are trying to burn off extra energy purchased by the energy company.
As companies work to generate revenue from IoT programs, concerns arise over compliance and security. Everything should be done with the consumer in mind, even B2B-focused companies. Consumers are constantly changing in their purchase behavior. Data breaches and security are also on the minds of companies who need to protect the consumers and their business.
Jeff Mucci – CEO and Head of Industry Insights & Analysis at RCR Wireless
Mike Lawlor – Chief Services Officer at USA Technologies
Karl Burns -Western USA IoT Sales Leader at T-Mobile
Joel Urano- President & CEO at Moadas Systems
Jason Ashston – President of Call Pass Tech