Amid all the hype over the transformative potential of the Industrial Internet of Things, many Asian enterprises are looking to get in on the act and transition from a product to a product-as-a-service provider.
There are significant benefits to be had by transforming from a “dumb” product to a “smart” product sold as a service. But Telenor Connexion VP of APAC Seth Ryding noted that it is common for enterprises to underestimate the complexity of such a transition.
For example, it can be difficult to transition from a business model involving onetime sales to one involving a subscription-like ongoing relationship.
“It can also be more complex then anticipated to add the smart part to the original product and getting the ecosystem that is needed [up and running], and finally it usually needs a new or changed offering in the market where the product as a service is going to be launched,” he said.
The companies that have had the shortest time from idea to launch of IoT-enabled services are those that have started small and with a clear customer benefit in mind, Ryding said.
Telecoms operators are in the ideal position to help enterprises with this transition, by providing a standardized connectivity solution that works no matter where devices are deployed and that makes maintaining ongoing relationships with the customer easier.
“It is very important for major telcos to continue to show the benefits of smart connected devices in the continuous development as well as standardize technology to make major rolluts across the globe easy and efficient,” Ryding said.
“Something that also is important is security which continuously has been an important part within mobile networks”.