Business  Model  Genera/on  for  M2M  Applica/ons From  Customer  Insights  to  Business  Models  –  Key  Success  Factors  

Katharina  Liebrand,  Swisscom      3rd  ETSI  TC  M2M  Workshop  

©  ETSI  2012.  All  rights  reserved  

The  EU-­‐Project  BUTLER    

BUTLER  develops  a  vision  of  a  secure,  pervasive  and  context-­‐aware  Internet  of  Things  

 BUTLER’s  concept  of  acMve,  

real-­‐Mme  and  progressively  personal  context-­‐awareness  is  inversely  proporMonal  to  the  degree  of  knowledge  required  from  users  

More  InformaMon  on  Butler:  www.iot-­‐butler.eu  

Key  Ques/on:      “How  to  make  money  with  IoT?”  

 I  have  something,  that  others  need.  

I  can  offer  it  at  a  price  others  are  willing  to  pay.

Find  a  balance  between  perceived  value  and  willingness  to  pay.    Define  a  model  to  establish  the  balance  now  and  evolve  in  the  future.  

What  is  it,  that  others  need?  

How  can  I  do  it?  Can  I  do  it  at  all?

Star/ng  with  a  Customer  Centric  View      to  Develop  the  Value  Proposi/on  

Needs Product

Value Proposition Key Partners

Cost Structure Revenue Streams

Customer Segments

1 Key Activities

Key Resources

Customer Relationships

Channels

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What  is  it  others  want?    -­‐  The  Value  Proposi/on  

 

 Needs  –  How  do  you  get  access  to  the  customer?    

•  listen  to  your  customer  carefully  before  and  during  the  design  •  pick  him  up  and  accompany  him  to  growing  with  him    

   Product  -­‐  What    is  „this“  at  all?    

•  Physical,  tangible  Object    •  Service    •  Feelings  (  Peace  of  Mind,  Safety,  Comfort,  Belonging  )      -­‐>        Customer  Experience  (Customer  Journey)    

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Needs Product

Value Proposition

 The  whole  is  more  than  the  sum  of  its  parts.  

Well as long as they help me to save money, I’d

think about it

What  the  Customers  Expect  from  Us    

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What happens to all the data this system

collects?

Need

The  results  of  the  customer  insights  (interviews)  strongly  influence  product  design  (customer  experience  design)  and  thus  the  business  model.

Usability, Choice Ethics, Trust

Brand Trust (Positioning)

I’d expect my doctor and my health

insurance to be involved in this

It would be great if it was integrated in my

existing devices!

One  technical  solu/on  –  two  very  different  products    Allianz:  Crash  Recorder  versus  Help  Box  

Value  ProposiMon  Crash  Recorder:  •  We  even  pay  you  for  it,  because  we‘ll  save  

that  much  on  your  claims  

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Value  ProposiMon  Helpbox:  •  Your  automated  

guardian  angel,  there  for  you,  when  you  most  need  it  

 The  whole  is  more  than  the  sum  of  its  parts.

Fleshing  out  the  Business  Model  looking  at  the  interac/ons  between  the  blocks  

Value Proposition Key Partners

Cost Structure Revenue Streams

Customer Segments

1 Key Activities

Key Resources

Customer Relationships

Channels

2

Many  individuals  need  to  be  reached    Many  individual  needs  need  to  be  reached  

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Partners

Hardware

Services

Life Cycle Mgmt

Own Resources & Activities

Variable Fix The  mass  market  consists  of  thousands  of    individuals  to  be  addressed.  

IoT  Business  is  all  about  mul/-­‐partnering   Mass  Market  needs  to  be  

reached  to  cover  fix  costs.                Minimize  Cost  per  Unit  

Customer  Preferences:  • Freedom  of  Choice  • EvoluMon  • Use  of  exisMng  devices  • Simplicity  • Should  not  cost  too  much  

Key  success  factors    

M2M  Business  is  about  Partnering  as  one  company  (usually)  cannot  offer  the  enMre  Service  alone.  

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Service Price Low High

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Max accepted Service Price The  perceived  value  of  a  product  is  heavily  influenced  by  the  way  the  customer’s  individual  needs  are  addressed  and  less  by  its  technical  nature  

“In  IoT    the  value  proposi2on  is  not  primarily  about  physical  products  and  not  even  about  services,  it‘s  mostly  about  experiences  and  feelings.”  

In  order  to  be  compeMMve  the  costs  need  to  be  managed:    -­‐  Openness  &  StandardizaMon  

-­‐  Freedom  of  Choice  for  Components  /  Partner  

-­‐  Design  with  OpMons  for  EvoluMon  

Key  Takeaways:  

Strategic  Learning  from  Other  Industries  

One  common  plagorm  

So  many  different  products  

Flexibility      Interoperability      EvoluMon  

Contact  Details:

Katharina  Liebrand,  Swisscom  AG    Katharina.liebrand@swisscom.com  

Katja  Moser,  Swisscom  AG  Katja.Moser@swisscom.com  

 More  InformaMon  on  Butler:  

www.iot-­‐butler.eu    

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Thank  you!  

©  ETSI  2012.  All  rights  reserved