1. Figure out the ROI
“The consumption-based model appears to be pretty powerful for unlocking a lot of opportunities, but we have to be careful how we get to it,” says Mark Patel, a McKinsey partner.
2. Factor in Product Redesign
Clearly mapping out the type of data to be gathered, sensor location, and how often it will be analyzed are all crucial.
3. Map Out All of the Relevant Business Impacts
The best power-by-the-hour pitches come with added benefits. General Electric, for instance, leases jet engines but also will help airlines optimize fuel consumption.
4. Don’t Just Reimagine Products; Rethink the Entire Organization
The shift from selling a product to a service can send ripples reverberating throughout an organization.
5. Find Leadership to Navigate the Metamorphosis
To transform your organization with IoT, you may need to both build the talent you need while getting recruiting new leaders to oversee the transition.
6. Read the Fine Print Through a Security Lens
Both buyers and sellers will want to minimize their exposure to risk. Proceed with caution.
7. Keep an Eye on Regulation
Regulation could be the x-factor in as-a-service arrangements.
8. Determine You Should Have Access to the Data
For the most part, companies providing IoT-connected equipment are the owners of IoT data. Figuring out the intricacies of data ownership, however, is up to you.