26 May New Business Models in Consumer IoT are still Solidifying
oT consumer products are more expensive than their traditional counterparts, often by order of magnitude. Not good but makes sense – the tech needs to be financed. But however innovative the products are, higher pricing will cause a headwind. Part of the problem is consumer IoT products are still being sold with traditional product business models. In this episode of the IoT Business Show I speak with Nate Williams about the opportunity to innovate consumer IoT business models.
In this episode of the IoT Business Show, I speak with Nate Williams about the opportunity to innovate consumer IoT business models.
Nate is the Chief Revenue Officer at August Home, where he is responsible for managing sales and business development. He has over 15 years of experience as a technology executive, entrepreneur, and advisor with executive roles in marketing, product and business development, as well as corporate finance.
In commercial, industrial and infrastructure IoT we are seeing business model innovation happen as plotted on what I call the IoT Business Model Continuum. No so much on the consumer side. Why? Because old consumer habits die hard. Look at three of the biggest IoT consumer product categories: lights, locks and thermostats, and they are all still using the tried and true business model of the one-time purchase. This forces prices higher to cover the extra tech, which in turn slows down market adoption. To bring down prices, consumer IoT companies must discover ways to offset costs by working with third-party businesses via side business models that monetize value from the consumer or the consumer’s data. Yes, this will introduce a host of thorny issues but it will be in this ether that new consumer business models will solidify.
Here’s What We’ll Cover in this Episode
- Comcast’s domination in the smart home market.
- The amount of financing it took to get August Home where it is today.
- Why DevOps, the hot new category in engineering, is so important to consumer IoT.
- One of the biggest pitfalls in current consumer IoT business models.
- What Hero Products are.
- When platforms will be needed (and paid for) in consumer IoT.
Mentioned in this Episode and Other Useful Links
Support this Podcast
If you have been enjoying this podcast, there are a few ways you can support it:
Have an opinion? Join the discussion in our LinkedIn group
Have you seen any successful non-traditional business models work in consumer IoT?Click here if you have an opinion on this podcast or want to see the opinion of others