How connected products earn.
WHAT THE MODELS ARE
Hardware sold, with no ongoing service Hardware sold, with a subscription Hardware provided, with the service charged Outcome-based charging Data sold or shared, where lawful
WHAT HARDWARE-ONLY SALES CANNOT SUSTAIN
Ongoing connectivity, platform and support costs.
WHY THAT IS THE COMMON MISTAKE
Recurring costs continue while revenue does not.
WHAT SUBSCRIPTION PROVIDES
Revenue matching the cost structure.
WHAT IT REQUIRES
Continuing value the customer perceives.
WHAT PROVIDING HARDWARE FREE ACHIEVES
Removing the purchase barrier.
WHAT IT REQUIRES
Capital, and confidence the customer will remain.
WHAT OUTCOME-BASED CHARGING MEANS
Charging for the result: energy saved, downtime avoided.
WHAT IT REQUIRES
Agreed measurement of that outcome.
WHY THAT IS DIFFICULT
Attribution is contested when results are good.
WHAT TO ESTABLISH BEFORE SELLING DATA
Consent, lawfulness, and whether it is your data at all.
WHAT TO PRICE AGAINST
The value to the customer, not your cost.
WHAT TO PLAN
What happens to devices if a customer stops paying.
