IoT monetization refers to the practice of being able to generate income from IoT devices and solutions. Failing to properly monetize solutions can reduce enterprises’ revenues and impact on their ability to scale up devices.
In news reported by IoT Insider on a collaboration between KPN IoT and Freeeway that created an integrated IoT monetization platform targeted at automotive manufacturers, Harald Fuchs, CEO of Freeeway stressed the significance for manufacturers to be able to monetize connectivity solutions: “Car manufacturers have been subsidising connectivity services, but that is simply not a sustainable long-term option for them,” he said. “They need new monetization options. We see a huge opportunity for and interest in our platform that helps car manufacturers to do exactly that, now and in the future.”
In running through commonly faced challenges to IoT monetization, IoT Insider shares potential solutions and best practices to overcome them.
Data management and integration
Managing and integrating vast amounts of data from diverse IoT devices can be overwhelming. Ensuring data consistency, quality, and interoperability across different systems is a significant hurdle.
Implementing robust data management platforms that support data integration and ensure compatibility across devices will help to resolve this challenge. Using standardised protocols and APIs can also facilitate smoother data exchange and integration. Scalable Cloud-based storage solutions such as Amazon Web Services (AWS) or Google Cloud supports businesses in expanding their infrastructure.
Security and privacy concerns
IoT devices can be susceptible to cyber attacks, which in turn compromises data security and user privacy. Ensuring the protection of sensitive information is crucial for gaining customer trust and complying with regulations, particularly as the EU Cyber Resilience Act (CRA) which is coming into force soon, a legal framework which outlines cybersecurity requirements for hardware and software products.
In an interview granted to IoT Insider, Chris Jones, Director of Applications at Crypto Quantique said: “We’re hearing a lot of companies don’t know aout the CRA and therefore aren’t preparing for it … We’re trying to get people to understand they have to do it.”
Adopting comprehensive security measures, including end-to-end encryption, regular security updates, and secure device authentication will help to address this. Enterprises should conduct thorough security audits and compliance checks to identify and mitigate potential vulnerabilities.
Scalability issues
As the number of connected devices grows, maintaining performance and scalability becomes challenging. Businesses must ensure their IoT infrastructure can handle increasing data volumes and device interactions.
Designing scalable IoT architectures that can grow with the business is imperative. Utilise cloud-based platforms that offer flexibility and scalability. Implement load balancing and edge computing to distribute processing and reduce latency.
Initially high costs
The initial investment in IoT infrastructure, including hardware, software, and network capabilities, can be prohibitive for many businesses.
As a result, exploring flexible financing options such as leasing or subscription models to spread out costs. Considering partnerships and collaborations to share resources and reduce the financial burden can help.
Monetization strategies
Developing a clear and effective strategy for monetizing the large amounts of IoT data generated by devices can be complex. Companies can often struggle to identify the most valuable use cases for their data.
Conducting thorough market research to understand customer needs and identify lucrative data monetisation opportunities is one answer to this challenge. Developing a data strategy that aligns with business goals and focuses on creating value for customers is equally important.
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