Pawan Dubey, Consultant, Infosys.looks at transforming business models, systems and mothods of collaboration. Dubey will be speaking at Internet of Everything InFocus 2017 in Amsterdam (October 17-18) during a talk called Designing Sustainable Business and Monetization Models for IoE.
Let’s go way back to our old school days, back to our chemistry classes where we experimented and had fun setting things on fire. Now I’d like to use the concept of ‘ionization’ and relate it back to the business of the internet of things (IoT)
You might be familiar with ionization which happens when electrically neutral atoms or molecules are converted to electrically charged atoms or molecules (ions), making them more reactive than their original form.
For this analogy, I look at ‘IoTization’ (see what I did there?) and how it can hold good for our businesses.
IoTizing through multiple, layered business models
I’ll look at the business model as if it’s an atom/molecule: The business model has a lot to offer and is capable of driving innovation. But, while in its current, original ‘unIoTized’ form, it’s carrying on as it has done in the past, and is well… a bit passive, especially if you consider it in today’s connected world scenario. IoTization of our existing business model, turning it into a reactive, transformative, platform-led model, could be a game changer.
IoTize an existing business model by multiplying it into many models, each one specific to a certain IoT industry vertical. Each of these can then be turned into bespoke, layered models, with each layer feeding into each other, yet representing a different department/area of expertise. This approach would mean well-planned focus on verticals and areas of growth, in turn catalyzing IoT business growth, and generating a lot more monetization opportunities.
It’s fair to say this is not a quick or easy transformational task. It will require much strategic thinking, decision-making and investment. Before they even start selling IoT-based products and services, product-centric organizations would need these models to ensure the readiness of adoption and enrichment of the functional capabilities of their IoT journeys.
IoTization through strategic collaboration
Collaboration is key to helping to achieve the expected monetization outcome from the IoE business. A major worry is that this is still next to impossible if all the necessary players in that specific ecosystem don’t show up and work together at the right time and in the right place.
Investing in experienced, collaborative partners, will enable the kind of transformation you may not have been able to achieve on your own or with the wrong people/companies. Product manufacturers, telcos, platform business providers and system integrators are all examples of important players in a collaborative IoT ecosystem.
This experience and expertise in this winning combination has the potential to benefit all the stakeholders in this ecosystem. System integrators, for example, are like a one-stop shop for the optimal cohesion of design, development and end-to-end testing of IoT products and services created by the other partners.
In her recent report, 5G: Is platform the killer use case, TM Forum’s Managing Editor Dawn Bushaus stated that with such increasing digitization and connectivity, CSPs have “a unique opportunity to turn their networks and operational and business support systems (OSS/BSS) inside out.” This is unsurprising seeing as a report from BCC Research stated that the global market for IoT platforms will grow from $629 million in 2016 to over $2.3 billion by 2021.
What’s more, the report stated that the cloud software-as-a-service (SaaS) and platform-as-a-service (PaaS) market should reach $2.1 billion in 2021. OSS/BSS will need to be transformed through automation and artificial intelligence to support the complexities that come with virtualization and the cloud, something that TM Forum is currently focusing through its recent discussion paper, TM Forum Future Architecture Strategy Discussion Paper.