For business success in IoT, the ability to adapt products to customers needs is an important measure.
Flexera advises customers to move towards a more agile, software-driven business model by following these four steps:
- Package your products for different customer needs using a flexible monetisation and entitlement management technology.
- Offer different product packages at appropriate price points for different market segments.
- Provide value-related pricing that enables your customers to start small and scale up as they grow.
- Create up-sell and cross-sell opportunities for features and add-ons.
Flexera wrote in its Smart Manufacturing White Paper: “Differentiating products by enabling or disabling features through software enables producers to offer product agility so far unknown to the market.
“This can be in the form of producing fewer physical parts (and configuring package features via efficient licensing solutions) and rebalancing features between devices almost instantly.
“Instead of manufacturing dozens of different models of a product at significant manufacturing costs, an IoT company can use secure digital monetisation capabilities to reduce the number of physical product lines, using software to create different versions.
“Software on the SCADA/HMI level is being used to enable and disable features on controllers, managing hardware functionality on a device level.”
These tips can help manufacturers to rebalance features between devices almost instantly, as well as enables business model flexibility as high-value features can be monetised separately.
Written by Leah Alger