What Role Will Partnerships Play in Developing New Business Models for Mass Market Adoption in the IoT Era?
Partnerships can generally be divided into two categories: those that enrich the functionality and services of the smart home consumer experience and those that deal with go-to-market channels.
Alliances between whole home platforms and point devices enhance the eco-system and create the necessary value to meet customers’ various but individually specific needs – be they security, energy savings, convenience or prevention of water damage. Partnerships in this area can combine the capabilities of different vendors to create valuable propositions best suited for targeted customer groups. Partnerships in go-to-market channels will be critical to IoT’s long-term success. While telcos, security, energy and insurance providers have the volume of subscribers necessary for mass market adoption, attempts thus far have largely come up short. This is where collaboration can add the necessary punch.
While telcos are acknowledged as trusted providers of consumer residential services, they are not a natural fit for home security. Similarly, insurance and utility companies share a profound interest in providing systems that reduce their claims and energy consumption respectively. They are keenly aware that these new services can increase their market share, but they do not possess the necessary technical support capabilities nor are they viewed as trusted providers. This is where collaboration with telcos would create a complementary proposition that would benefit all parties.
No vendor or service provider can provide the entire value proposition required to offer a complete solution or attain mass market smart home proliferation. Strategic partnerships between partners with complementary capabilities and interests are critical.
By Rafi Zauer, Head of Marketing at Essence
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