How can you assess your business model with the Internet of Things?

1 Define your value proposition

Your value proposition is the core of your business model. It describes how you solve your customers' problems or needs, and what makes you different from your competitors. With IoT, you can enhance your value proposition by adding new features, services, or benefits to your products or processes. For example, you can use IoT to monitor your product performance, provide remote support, or personalize your offerings. To define your value proposition with IoT, you need to identify your target market, their pain points, and how you can address them with IoT solutions.

3 Evaluate your key resources and activities

Your key resources and activities are the assets and processes that enable you to deliver your value proposition and generate revenue. With IoT, you may need to acquire new resources or modify your activities to support your IoT strategy. For example, you may need to invest in IoT hardware, software, or platforms, or develop new skills, capabilities, or partnerships. To evaluate your key resources and activities with IoT, you need to assess your current strengths and weaknesses, your resource requirements, and your value chain.

4 Consider your customer relationships and channels

Your customer relationships and channels are the ways you interact with and reach your customers. With IoT, you can improve your customer relationships and channels by enhancing your communication, feedback, and loyalty. For example, you can use IoT to collect customer data, provide personalized recommendations, or create engaging experiences. To consider your customer relationships and channels with IoT, you need to define your customer segments, their preferences and behaviors, and your distribution and marketing methods.

5 Monitor your external environment

Your external environment is the context in which you operate your business. It includes factors such as competitors, regulations, trends, and risks. With IoT, you need to monitor your external environment and adapt to the changes and opportunities it presents. For example, you need to be aware of the emerging IoT technologies, standards, and best practices, as well as the legal, ethical, and security implications of IoT. To monitor your external environment with IoT, you need to conduct a SWOT analysis, a PESTEL analysis, or a Porter's five forces analysis.

By following these steps, you can assess your business model with IoT and identify the areas where you can create or capture more value. IoT can help you differentiate your business, increase your efficiency, and satisfy your customers. However, you also need to consider the challenges and risks of IoT, such as complexity, interoperability, and security. Therefore, you should always test and validate your IoT solutions before implementing them in your business.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?