The advent of Internet of Things (IoT) is notably one of the best achievements since the influx of tech advancements. Its integration has brought about a remarkable pace of revenue opportunities to the global industrial sector.
For companies, individuals and businesses, maximizing these opportunities is essential for growth, expansion and competition. With products ranging from smart homes and waste management, automotives to healthcare; IoT sets about not only creating new products but transforming the existing markets.
In such way, in markets that feature stiff competitions, companies now have the leverage to expand to and seize newer market segments by harnessing the power of IoT.
However, it is noteworthy that the most successful IoT products are those that generate recurring revenue while delivering continuous value for customers. One effective way of cashing in and monetizing data is via access to relevant services and this can be easily done in marketplaces.
Digital Marketplace: How it Creates Value
For quality development of products, interconnection is one of the ways of delivering services efficiently. Just like physical marketplaces, digital marketplaces in IoT provide platforms which breeds connection between consumers and data suppliers.
Digital marketplaces give companies the opportunity to create and exchange data sets and streams proficiently and securely without compromising quality and consistency. Here, data suppliers can issue license for distribution of their information to the marketplace on defined terms and conditions.
Consumers also play a dual role by becoming suppliers and providing data back to the marketplace. It is more like a cycle and the marketplace is integrated with an exchange platform that is created as a base for exchange of innovative ideas, data and services.
The marketplace also provides a platform for third parties to offer value added services in combination with the data offered by the marketplace itself. It also helps companies create values through different enablers. As such, companies get to generate more revenue through putting their data to work.
Various Use Cases of the Digital Marketplace
Build-up of a Fundamentally Sound Ecosystem:
Marketplaces helps users and companies generate more revenue by increasing the relevance of their platforms. One of the fundamentals of growth in companies is the collection of big data. However, detailed analysis of this data is needed for the harnessing the value of the data.
For this, companies need translators that understand the basics of the data and can simply bridge functionalities in companies. A translator can, for instance, be skilled in computer programming and finance. This helps expand the company’s growth system.
Thus, through gathering various third-party participants in marketplaces and creating a sound ecosystem, companies are able to fully groom their digital platforms to full potential. This, in turn, expands revenues.
Expanding Monetization Opportunities
One of the key functionalities of interconnection in the digital world is the advancement of the value of high-quality data assets. Hence, marketplaces help expand the value of various industrial sector thus creating more monetization and revenue opportunities.
A simple example is the rise of the electric-automobile market. A marketplace provides a platform for the exchange of data which, in a way, serves as a feasibility base or study for the project.
The marketplace for the electric automobile market provides more revenue generation opportunities by providing base information for not only manufacturers but charging-station operators and mobility-service players.
As such, these operators and players can model their fees and pricing structures based on data made available about customers and previous market trends.
Building Business Models
Participants on marketplaces can also build transactional models to monetise their services and data. One of these models is the on-demand model where customers can either pay as they go or sign contracts detailing volume pricing based on various factors.
Companies can try out traditional licensing where they get to offer customers one-off or perpetual deals based on demand. Revenues are generated either through signed contracts detailing fixed fees or at the time and point of sale.
A different business approach in marketplaces is the “give and take” business model. This runs on incentives given to data suppliers to provide services. This incentive could be monetary or in form of relevant data needed.
As such, with this model on the marketplace, companies can either generate more revenues through sharing services and data and getting relevant data in return.
Detailed research on competition and the existing market structures is one of the keys of staying ahead of the game and generating more revenue alongside. The marketplace offers customers relevant assessment of customer needs, the dynamics of the existing markets with precision.
Interconnection in and data from marketplaces helps companies monetize their data while building and reinforcing their existing structures to meet up with ever-rising market demands. Hence, for companies with innovative ideas, the marketplace serves as a base for due feasibility studies.