The Internet of Things is a Value-Added Service (VAS), not an independent service.
Recently I heard people saying that IoT is not an industry.
Some generic IoT Platforms were discontinued.
In my opinion, IoT is not diminishing, it is evolving. And I am not talking about the technology itself, but about our attitude toward it.
The Internet of Things is not the final product or service. No one needs a connected “box” in their home, we need “washing machines”. A washing machine provides value for the users - the clothes cleaning service.
A washing machine does not need the IoT to be useful (and generate income for the provider).
The Internet of Things needs washing machines! IoT can add additional value (benefits) to the washing machine service, for example:
- automatic ordering of washing powder
- starting the washing cycle during cheap energy hours
- detecting worn parts and alerting about the required predictive maintenance
- testing the quality of water
IoT is not the main feature of a “modern” washing machine, it is a Value-Added Service.
The interesting question is how to price the IoT as VAS. IoT capabilities add two types of costs for the service provider:
- the one-time cost of extra hardware
- the ongoing cost of connectivity, data processing, and storage
Successful Internet of Things initiative needs to meet those two goals:
- find a product/service it can add value to
- generate more value than the total cost it introduces
In my opinion, thinking about the IoT from the value-added perspective increases the odds of successful Internet of Things deployment. Would you agree?
