Short answer
Design for data-driven services and continuous value delivery, not just for the initial physical product.
- Field
- Innovation & Markets
- Source
- Academic Publication (2015)
- Method
- Conceptual analysis and case study review
- Evidence
- Strong effect
The Internet of Things (IoT) enables product-based companies to shift from solely selling physical goods to generating ongoing revenue through data-driven services and insights. This innovation & markets research insight is drawn from a 2015 study published in Academic Publication. Using Conceptual analysis and case study review, researchers explored how this design variable affects real-world outcomes. The key design takeaway: Design for data-driven services and continuous value delivery, not just for the initial physical product.
Information as a Service: Unlocking New Revenue Streams in IoT Product Design
The Internet of Things (IoT) enables product-based companies to shift from solely selling physical goods to generating ongoing revenue through data-driven services and insights.
Academic Publication · 2015
Key Findings
- 01Information and knowledge are emerging as critical assets in the IoT era, akin to 'new oil'.
- 02IoT enables new revenue models such as subscriptions, app-based services, and advanced analytics.
- 03Extracting value from information assets is challenging due to their intangible nature compared to physical products.
- 04Real-world use cases demonstrate successful implementation of information-as-an-asset strategies in IoT.
Application
Design takeaway
Design for data-driven services and continuous value delivery, not just for the initial physical product.
How to apply
When designing IoT products, consider what data can be collected, how it can be analyzed, and what new services or insights can be offered to users to generate recurring revenue.
Project actions
- 01Consider how your design can collect useful data.
- 02Think about what services or updates could be offered based on that data.
- 03Explore how these services could generate ongoing income.
Method & Evidence
Variables
Strengths & Limitations
Strengths
- +Provides a forward-looking perspective on business models enabled by IoT.
- +Identifies key conceptual frameworks ('laws of information') for understanding data value.
Limitations
The practical challenges of data management, cybersecurity, and user adoption of new services may not be fully explored in this conceptual paper.
Reliability & validity
The study's findings are based on conceptual analysis and existing use cases, making direct empirical testing of its claims challenging. Its validity lies in its theoretical framework and illustrative examples.
Think critically
While information is the 'new oil,' what are the ethical considerations and potential pitfalls of treating user data as a primary revenue source in product design?
Design Principles
"Design products with integrated data strategies to enable ongoing service-based revenue and user engagement."
This paradigm shift requires designers and engineers to consider the entire product lifecycle, not just initial production. It opens opportunities for continuous customer engagement and value creation by leveraging the data generated by connected products.
What This Means for Your Design
Think about how your connected product can keep making money and helping users even after they've bought it, by using the information it collects.
How to use in your project
- 1.Use this research to justify designing for service-based revenue models in your product development.
- 2.Reference the shift from product sales to information-as-an-asset as a key driver for your design choices.
Add to My Project
Quick Cite
Paragraph starter
The Internet of Things presents a significant opportunity to redefine product value, shifting from a one-time sale model to one where information itself becomes a core asset. As explored by Kubler et al. (2015), leveraging 'information-as-an-asset' through IoT enables the creation of new revenue streams via data-driven services, subscriptions, and analytics. This paradigm necessitates a design approach that prioritizes continuous user engagement and value delivery beyond the initial product purchase, opening avenues for sustained market presence and profitability.
Source
Academic Publication
Opportunity to Leverage Information-as-an-Asset in the IoT -- The Road Ahead
journal · 2015
View sourceQuestions About This Research
- What does the research say about information as a service: unlocking new revenue streams in iot product design?
- Design for data-driven services and continuous value delivery, not just for the initial physical product. Evidence: Academic Publication (2015).
- Why does "Information as a Service: Unlocking New Revenue Streams in IoT Product Design" matter for design?
- This paradigm shift requires designers and engineers to consider the entire product lifecycle, not just initial production. It opens opportunities for continuous customer engagement and value creation by leveraging the data generated by connected products.
- How can designers apply this research?
- Design for data-driven services and continuous value delivery, not just for the initial physical product.
- What were the main findings?
- Information and knowledge are emerging as critical assets in the IoT era, akin to 'new oil'.. IoT enables new revenue models such as subscriptions, app-based services, and advanced analytics.. Extracting value from information assets is challenging due to their intangible nature compared to physical products.. Real-world use cases demonstrate successful implementation of information-as-an-asset strategies in IoT.
- What research method was used?
- Conceptual analysis and case study review.
- How strong is the evidence?
- Evidence strength is rated Strong effect, based on a 2015 journal from Academic Publication.
- What should I do differently in my next project?
- When designing IoT products, consider what data can be collected, how it can be analyzed, and what new services or insights can be offered to users to generate recurring revenue.
- What are the limitations?
- The paper focuses on conceptual frameworks and existing use cases, with less emphasis on the technical implementation details or the specific challenges of data security and privacy.