accelerating iot innovationfiles.meetup.com/18610389/techriot january 2016 meetup joseph...
TRANSCRIPT
January 2016 MeetUp
Featuring Joseph Zaloker from Arrow Electronics
“Monetizing the Internet of Things”
Accelerating IoT Innovation
This Evening’s Agenda
www.techriot.org @techriotorg #techriot
6:00 - 6:20pm: Registration/Networking
6:20-6:30pm: Welcome & Introductions
6:30-7:15pm: Keynote Speaker:Joseph Zaloker
7:15-7:30pm: Q&A
7:30: Networking/Happy Hour/Adjourn
www.techriot.org @techriotorg #techriot meetup.com/techriot/
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Executive Advisory Board
Thank You!
TimelineOct - Nov Dec -Jan January 2016 Feb - August August-September
Application Evaluation Company
Selection
TechrIoT XLR8 Pitch Events
Silicon Valley &
Denver
www.techriot.org @techriotorg #techriot
Upcoming TechrIoT Community Events
Date Event Notes
January 19, 2016 MeetUp:
Monetizing the Internet of
Things
Featuring keynote speaker
Joseph Zaloker from Arrow
Electronics
February 1, 2016 MeetUp:
Google and Notion
Featuring Doug Daniels from
Google and Ryan Margoles
from Notion
March 8,, 2016 MeetUp
Internet of Things and Aviation
Featuring Chris Kiley from
Jeppesen
March 22, 2016 MeetUp:
IoT Security Mashup Panel
Discussion
Featuring Mark Weatherford
as Moderator
April 12, 2016 MeetUp:
Indiegogo: Leveraging
Crowdfunding
Featuring JP Neal and Michael
Hughes
Joseph Zaloker Director Marketing Intelligent Systems
TechRIOTMonetizing the Internet of Things
January 19, 2015
Joseph Zaloker Director, Technical Marketing
Arrow
Joseph Zaloker – Director, Technical Marketing� Director, Technical Marketing Arrow Intelligent Systems
� Director of Sales – M2M/IoT Design Services Company
� Extensive experience in architecting technical and business solutions with compelling ROI for various industry verticals including industrial, retail, smart energy, transportation, medical, and intelligent systems.
� Create new and emerging business models for clients and help guide their products into production in the Machine to Machine (M2M) and Internet of Things (IoT) space
� Editor, Arrow’s Intelligent Systems eNewsletter, speaker and technical advisory board for numerous industry publications
56countries
$22.8B 2014 sales
138 Fortune 500
17,000
100,000 customers
Arrow
Offers an end-to-end solution enabling
businesses to deploy, manage, monitor,
analyze and monetize secure connected
devices throughout the customers entire
lifecycle globally
Our Customers Have New EXPECTATIONS
Services vs. Products
Customer Expectations Have Changed
Services Disruption� Largest Taxi Company Owns No Taxis
� Largest Accommodations Company Owns No Real Estate
� Largest Phone Company Owns No Telco Infrastructure
� Largest Movie House Owns No Cinemas
� Largest Software Vendors Don’t Write Apps
� Worlds Most Valuable Retailer Has No Inventory
� Most Popular Media Owner Creates No Content
The Internet of Things is NOTNOTNOTNOT About Things
Value is created transforming system data into knowledge, intelligence, and meaningful action
How Do You Make Money in the Internet of Things?
(A)The same way you make money anywhere else:
The relentless delivery of Value to your customer
� M2M/IoT has always been about creating new differentiation in the market
� M2M/IoT used to be about operational efficiency, and reducing costs
� Now increasingly seen as enabler for new services
Source: Beecham Research Sept 2012, for Oracle
Survey of M2M Solution Providers published November 2012:
Intelligent System Primary Drivers
Connectivity Options and Trade-offs
Business Metrics
Return On Investment
Break-Even
Internal Rate of Return
Net Present Value
Average Revenue Per User (ARPU)
Segment Portfolio Management
Customer Segmentation
CompetitiveAnalysis
Demographics
ChannelAnalysis
Buying Patterns
CustomerSegment
1
CustomerSegment
2
CustomerSegment
“n”
• Is each segment clearly unique?• Can you effectively market to each segment?• Size of each potential segment?• Is there growth in each segment?• Does this drive prioritization?
Choosing a Business ModelDeveloping products today forces you to rethink your business model
HHardware Only
HsHardware-Centric
HSBalanced
hSSubscription-Centric
SSubscription Only
$7.99 USD $79.00 USD
WHY PAY MORE?
$29.99 USD $249.00 USD
What Value Do You Provide?
Value Based Pricing
Developing products today forces you to rethink your business model
+6Value Pricing
+9Disruptive PricingMarket Pricing
+3Cost-Plus Pricing
Model
Business Metrics
Return On Investment
Break-Even
Internal Rate of Return
Net Present Value
Average Revenue Per User (ARPU)
Segment Portfolio Management
Other Thoughts�Understand who are the constituents your are serving
� Marketing, Sales, Support, Customer Service
�Monetize Services to Your Clients� Cellular Data, Cloud, API Management
�Business Process Efficiency� Bottom Line Saving
�Value of the Data� Realize The Value of Your Data
�Top Line Growth Opportunity� How Can You Generate More Top Line Revenue
�Consider Starting a Data Analytics Company� Data aggregators for specific industries that create data-driven analytics that help with
everything from maintenance/warranty stuff (MRO) and MTTF predictions
Where the Wireless “Things” Are
Source: Strategy Analytics M2M Strategies Advisory ServiceSource: Strategy Analytics M2M Strategies Advisory ServiceSource: Strategy Analytics M2M Strategies Advisory ServiceSource: Strategy Analytics M2M Strategies Advisory Service
�Solve the Business Problem
� Identify the key constituents
�Define clearly the Market Segments and opportunity
�Choose the right business model(s)
�Understand the Value your products and services created
�Don’t forget to do the financial analysis
� It’s a Subscription/Service Economy
Questions?