44
F. Firouzi et al.
may consider data that was not originally fit to their particular business model.
Customers may seek additional information for data points that were not initially
recorded.
• Traditional Product Management and Marketing – IoT data is not like a
traditional physical product. Therefore, companies may need to forego the usual
activities that help sell physical products such as research, design, development,
promotions, packaging, or marketing support.
• Protecting Against Unlicensed Use – It is very important to ensure data
sovereignty for the creator of the data. It is easy to copy data, and thus it
can become difficult to make sure customers are not utilizing data in unintended
manners. Therefore, we need to consider contracts that ensure a licensed user
understands the appropriate and ethical handling of information products, how
to audit usage, etc.
1.5.6 Business Model
It is important to understand the basic business model before attempting to create an
IoT Solution. The term “business model” was born toward the end of the 1990s when
it became a buzzword in popular media. Since that time, it has received significant
attention from scholars and business practitioners and currently exists as a clear
point of interest in many areas of IoT. Typically, the business model is defined
as an analytical model used to determine how a business functions. The available
literature regarding the business model has not yet reached an agreement regarding
which elements are vital to the creation of a business model. However, two widely
known tools currently exist to illustrate business models: St. Galler Magic Triangle
and Osterwalder Business Model Canvas.
The St. Galler Magic Triangle is comprised of four dimensions and is illustrated
using a triangle shape (see Fig. 1.9) [31]:
• Who
– Who are the target customers?
– How can customers be classified into groups?
– What are the basic demographics and shared characteristics of customers?
• What
– What is the opportunity being offered to the customer?
– What value is being added for the customer? (value proposition)
– What combination of services or products make up the opportunity?
• How
– How is the value proposition created, applied, and distributed?
F. Firouzi et al.
may consider data that was not originally fit to their particular business model.
Customers may seek additional information for data points that were not initially
recorded.
• Traditional Product Management and Marketing – IoT data is not like a
traditional physical product. Therefore, companies may need to forego the usual
activities that help sell physical products such as research, design, development,
promotions, packaging, or marketing support.
• Protecting Against Unlicensed Use – It is very important to ensure data
sovereignty for the creator of the data. It is easy to copy data, and thus it
can become difficult to make sure customers are not utilizing data in unintended
manners. Therefore, we need to consider contracts that ensure a licensed user
understands the appropriate and ethical handling of information products, how
to audit usage, etc.
1.5.6 Business Model
It is important to understand the basic business model before attempting to create an
IoT Solution. The term “business model” was born toward the end of the 1990s when
it became a buzzword in popular media. Since that time, it has received significant
attention from scholars and business practitioners and currently exists as a clear
point of interest in many areas of IoT. Typically, the business model is defined
as an analytical model used to determine how a business functions. The available
literature regarding the business model has not yet reached an agreement regarding
which elements are vital to the creation of a business model. However, two widely
known tools currently exist to illustrate business models: St. Galler Magic Triangle
and Osterwalder Business Model Canvas.
The St. Galler Magic Triangle is comprised of four dimensions and is illustrated
using a triangle shape (see Fig. 1.9) [31]:
• Who
– Who are the target customers?
– How can customers be classified into groups?
– What are the basic demographics and shared characteristics of customers?
• What
– What is the opportunity being offered to the customer?
– What value is being added for the customer? (value proposition)
– What combination of services or products make up the opportunity?
• How
– How is the value proposition created, applied, and distributed?