Bridge Different Business Models

 The IoT is leading to new avenues of growth but also threatens how companies have historically made money. Hardware companies traditionally derive profits by balancing product revenues with the costs associated with materials, manufacturing, and fulfillment. On the flip side, digital companies usually leverage service business models, often with recurring revenue streams. For connected devices, the two worlds collide in a confusing way: the hardware company has to begin accounting for the costs of tracking data and supporting a service, while the software company has to start managing the costs of making and distributing physical products. via Link

Looking to be in the business of IoT, consider the challenging of bridging different business models.

 

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