Connected devices are revolutionizing the way we live our day-to-day lives, from our healthcare systems, to how both Smart Cities and Smart Homes are transforming the idea of convenience for everyone.
By the year 2020, there will be anywhere from twenty to forty billion "Internet of Things" and "Internet of Everything" devices online. Which means the opportunity (and the pressure) is on for companies to determine how to effectively measure and monetize the data from these rapidly growing services.
The cloud-based LogiSense IoT billing platform provides the flexibility and power to ensure monetization of the Internet of Things products, services, and revenue streams.
The Internet of Things used to sound like something futuristic, but the reality is that it is here right now, and it is here to stay. Defined as the connection of internet computing devices that are embedded in everyday objects, enabling them to send and receive data.
The IoT industry has opened a whole world of market expansion opportunities and it is estimated that by 2020 the IoT market will reach over $14 trillion in annual sales combined. Here are just a few industries where it is already having a significant impact:
Currently, 25% of car buyers already feel that internet connectivity is more important than engine power or fuel efficiency. Automotive IoT applications are unlocking new value for consumers by offering vehicle tracking, connected car applications and soon self-driving cars. By 2020, revenue is estimated to reach $115 billion.
Skies are the limit for Smart Cities IoT applications. From improved traffic congestion solutions, efficient water supply, energy savings there are no limits. In 2020, $170.4 billion in revenue is expected, from smart cities alone.
Technology devices that can be worn and often include tracking information related to health and fitness or other wearable tech gadgets include devices that have small motion sensors to take photos and sync with your mobile devices. In 2020, this market will double, generating an estimated revenue of $34 billion.
Expected to have the fastest increase in IoT adoption in the next couple of years. Healthcare IoT will be integrated into medical record keeping, device integration, and workflow optimization for healthcare staff. By 2020, IoT-related healthcare revenue will exceed $117 billion.
A smart home is a residence that uses internet-connected devices to enable the remote monitoring and management of appliances and systems, such as lighting and heating. In our homes, there are already many interconnected devices and appliances that are performing specific actions to save you money, time, and energy.
These could include home alarm systems, temperature control thermostats etc. By 2020 consumers from across North America are forecasted to spend the most on smart home systems with expenditure amounting to 100 billion U.S. dollars.
To properly scale your IoT business, we need to consider more than merely an IoT gateway and basic IoT billing models. To assist, LogiSense offers a variety of powerful solutions ranging from state-based pricing, share plans, personalized products and, subscription billing.
Is your only option for billing by a device at the start of a term and disconnect it at the end?
Gain flexibility in your revenue model by billing based on device state (pre-active, testing, active, suspended, etc.) Define different prices for your service based on the state of the device, instead of the term.
Billing flexibility of this sort is becoming essential in IoT, Enterprise and Communications companies.
Paying a flat rate per connected devices can become a costly endeavor and discourage someone from connecting more devices. For example, families might not fully secure their home with cameras if they are paying a fixed rate per connected camera.
Increase customer satisfaction and recurring revenue with share plans. A share plan defines the rules and parameters around how usage is shared across users. Applicable usage associated with a service may be pooled, such as minutes on a data plan or hours of recording.
Often contracts and pricing cannot be personalized and rely on an all or nothing methodology. This can cause disruption and confusion if customers cannot meet contract commitments or if their needs change mid-contract.
LogiSense can create and develop customized pricing to meet customer demands. Ensuring your customers meet the agreed upon terms for their special pricing requirements and that you capture revenue when customers under commit.
Subscription billing has evolved. From the days of getting your bill in the mail to electronic billing, the needs of your consumers have changed.
Provide ultimate flexibility for your consumers by offering different subscription charges based on product offerings.
With LogiSense you can create subscriptions that include multiple chargeable services. These include one-time fees, recurring costs and discounts in different creative bundles.
While IoT revenue generation is typically considered at the B2C level with wearables and automotive innovations on the forefront, we must consider the B2B and B2B2X billing models.
With the launch of 5G, telecom operators will deploy increased speed and efficiencies, to leverage IoT capabilities for more connected service offerings. Which means, instead of just having a B2B model where you are looking to connect a Smart City to a utility company, you will have companies operating on a B2B2x model, where they will need to offer billing solutions for multiple services such as smart home monitoring and wireless data at the same time.
With this increased complexity, your business will need a powerful tool to support these new revenue models.
The LogiSense billing platform has been designed from the ground up to be as flexible as possible and has been designed to scale both horizontally and vertically.
The Internet of Things and the Internet of Everything present unique challenges when identifying and capitalizing upon new revenue opportunities for companies. Now instead of relying on traditional KPIs companies can obtain real-time data from "things" they never had access to before. This ability to understand real-time data has created the opportunity to provide billing solutions for services that may have never needed it before.
The value chain is perhaps the most critical part of the business model. It defines how a service is delivered. Unlike, traditional value chains, IoT's value chains are complex.
This is because each process within the IoT value chain comes to the table with unique requirements, requirements that are essential to the performance of the application. Navigating each unique condition of each process can be daunting and thus makes the whole process complicated.
With Logisense scalability of this microservices architecture is entirely queue driven allowing for tailoring of individual services to be scaled as business needs require. As event queues meet thresholds, new processes are spawned, making sense of this complex value chain.
The real IoT innovation is not in the solution. It’s in the disruption of what it can do. IoT enabled innovation allows organizations to become – intelligent, agile, and adaptive in creating new value for its customers.
LogiSense empowers its customers to navigate complex value chains with proven, innovative resources, technical expertise and unmatched support to quickly and cost-effectively design, build, deploy, manage and monetize respective solutions in the IoT sphere.
Brands are re-evaluating the current Support of Things (SoT) customer support models in light of this inevitable shift. More and more enterprises recognize the ROI potential from significant savings on labour costs, reduced technician visits, lower call center volume, as well as the ability to scale SoT services.
LogiSense Partner Accelerator is a customizable program that helps solution and software partners align with LogiSense technology and expertise to solve complex monetization pains for IoT, Enterprise and Communications customers - accelerating time to market together.
Traditional business models are based on the classic, product-at-a-margin principle - a company produces a piece of hardware for X and sells it to consumers for X+Y. What complicates this model in IoT, however, is that the X value isn’t fixed.
Unlike traditional hardware, IoT products come with continuous, infrastructure-related costs. To work, they need a network on which to function and a service platform on which to collect and manage data.
Customers can leverage LogiSense to satisfy different business models. For instance, an enterprise might have customers with various subsidiaries and use parent-child relationships to manage these relationships. In another scenario, a customer may support share plans where multiple child-accounts with shared usage. Whatever the business model Logisense has been designed to tailor and support your needs as your company evolves.
Usage rating & subscription billing has been a great fit for the traditional marketplace, but with the launch of IoT greater complexities have bubbled up. The definition of microtransactions’ is a modern business model that offers the purchasing of virtual goods with tiny sums of money. In the IoT chain, you may have a customer who downloads an app but then decided to purchase an add-on service.
LogiSense addresses this demand by placing usage rating at the core of its subscription billing platform. The end goal is to create a balance between providers of digitized services and consumers by offering a personalized pricing model that considers the monetization priorities of service providers.
The competition in the IoT market is increasing minute by minute. Companies don't have the time to build complex billing solutions from scratch.
Stay ahead of the game, and eliminate the complexity, by letting LogiSense embed its solution-based system with your companies infrastructure to provide you white labeled real-time solutions.
With our billing platform, you will find an entirely API driven full system that is capable of integrating with a 3rd party. Giving you the solution you need without the complication of having to start from scratch building an internal solution.