Many companies make the mistake of launching IoT solutions without a business model plan or a pricing strategy. In this interview at the Impact Pricing podcast, I discuss best practices to avoid this pitfall.
Companies often fall into the trap of believing that what has worked for other companies will work for them. These companies fail to understand that IoT is not a one-size-fits-all solution.
To reduce risk and increase success, you need a structured approach to testing business models to make sure that you’ll be able to capitalize on the unique value you are providing to each of your customers.
Implementing a cookie-cutter approach to business modeling or pricing will undoubtedly lead to failure. And that’s why it’s no surprise that implementing the right business model and monetizing IoT continues to be one of the biggest challenges companies face today.
Given all these challenges, I was very excited when Mark Stiving invited me as a guest to his popular podcast: Impact pricing.
Mark’s podcast is called “pricing,” but don’t let that fool you. From his perspective, pricing is the discipline that associates a monetary amount to the value you provide to your customers. And that’s where we focused our discussion. In this episode, we had a vibrant conversation around business models and what it takes to monetize an IoT solution.
Key topics we discussed in this Impact Pricing episode:
02:38 — Backstory of Daniel’s IoT career, starting from the era of telemetry to M2M to IoT and now becoming the most visible expert when it comes to IoT
05:23 — Daniel’s checklist: 12 Steps Every Product Leader Should Know to Create Profitable and Scalable IoT Products
08:39 — Business model defined – a way of collecting, and delivering value from your customers
09:13 — How IoT opens the door for new business models and innovation
12:28 — Understanding the true Capex of IoT
14:34 — How to reduce purchasing friction through business model experimentation
24:29 — Pricing challenges: how do you provide enough value that makes sense for the customer to adopt your IoT solution
Note: If you’d like to dive deeper into how to create and test successful business models, I highly recommend enrolling in my online IoT Product Manager Certificate program.
Also, if you enjoyed this conversation, I’m sure you’ll also enjoy my podcast: IoT Product Leadership, where I interview top industry professionals on what it takes to create successful IoT products.
*Photo by Alvaro Reyes at Unsplash.