IoT & Collaborative Economy Recipe for Disruptive Business Models

For businesses to gain from the new IoT Economy, they must leave behind old business models and open up their IoT services to an IoT Market Place by means of an underline platform which will facilitate new and disruptive business models by allowing other businesses to co-sell, co-market, co-distribute, co-ideation, co-locate and even co-produce, co-build, etc. This is the power of collaborative economy.!

The examples below make the business case for two IoT use cases: Smart Connected Car and Smart Street Lightning.!

When people talk about collaborative economy, they usually think about high valued physical assets owned by individuals e.g. houses, cars, etc. that could be monetized during unutilized or spare time. AirBnB, Zipcar, Uber are a few examples of services leading the wave of collaborative economy which surpassed $3.5B in 2013 with growth exceeding 25% y/y.  

Businesses that will combine IoT and collaborative economy will have early movers advantage and much to gain: 1) Revenue sharing from every IoT transactions; 2) Selling new value added services; 3) Expanding into new markets and business transactions; 4) Creating new value, products and services based on partner and customer input/participation; 5) Strengthening long-term relationship with partners, businesses and customers!

Connectivity Cost

Cloud Platform

Mobile Devices

Payment Systems

Social Networking

Environment (Green) Savings

Drivers for IoT & Collaborative Economy

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•  Approx. $1K+ per Navigation & Rich Entertainment Systems!

•  eCall service !•  1-4 yr warranty!

Smart Connected Car: Revenue Sharing Content Provider!•  Apps/Content/Infortainment

based on Revenue sharing or Freemium!

•  Secure connectivity recurring services (revenue sharing) !

•  5+ yr (SLA based contract)!

Auto OEM!•  Prognostic analytics!•  Remote SW/FW update!•  5+ yr (SLA based contract)!•  Savings sharing with Mfg!Insurance Provider!•  Good driver discount!•  Metering-based-Premium!•  Traffic notification

(freemium)!

•  $10K+ /light pole !•  Waste of energy!•  Variable OPEX!

•  Weeks of downtime!•  Muni-service (budget

dependent)!

Smart Street Lightning: XaaS Light Pole-as-a-Service!•  $Y/per month (Antenna/AP

with Provide/Vendor)!•  $Z/per month (Public safety

& Traffic management)!•  10+ yr contract!

Lighting-as-a-Service!•  No CAPEX for Muni!•  No variable OPEX!•  $X/light pole/per month!•  15+ yr SLA based contract!Analytics-as-a-Service!•  App based!•  Loyalty based !

Traditional Car: CAPEX for Buyer Street Lightning: CAPEX for Municipality

IoT  Market  Place  

IoT  Products  

IoT  Services  

IoT  Pla4orm  

CO-X