As digital transformation continues to impact the way businesses are run all across the technology and services industry, there are certain factors in this broad concept that deserve a closer look. To further explore the business model impact, new technology, customer outcomes, and monetization aspects of the digital transformation journey, TSIA and Librestream have partnered to create a two-part blog series all about how to digitally transform your services business. TSIA has already had the privilege of speaking with Librestream’s COO, Jereme Pitts, about how the Internet of Things (IoT) and smart, connected products are changing business models, while Librestream spoke with TSIA’s VP of field services and IoT research, Vele Galovski, about monetizing services with IoT. Here’s a brief look at that interview.
What role does the Internet of Things/IoT play in digital transformation?
The Internet of Things or IoT really goes hand-in-hand with digital transformation. The three technology trends I mentioned including miniaturization, big data, and connectivity enables the Internet of Things and creates the space for digital transformation to happen.
As a result of these trends, it is possible for any electro-mechanical device to become a smart device with the addition of sensor technology. This sensor technology captures the digital representation of what the device is doing. From this, the device data can be analyzed and then stored as a digital twin. Because of these three trends, IoT opens endless possibilities for manufacturers to focus on improving their customer outcomes.
How is this technology impacting the customer experience and helping companies monetize their service models?
At TSIA, we use a three-step approach called the Remote Services Continuum. This approach is a roadmap we’ve created to help companies better understand how IoT capabilities can provide more value to their customers and how they can monetize it. The three steps focus on service efficiency, process optimization, and customer outcomes.
Service efficiency: focus on response improvements to reduce service costs. This cost saving happens by using IoT to connect your products, get data, and analyze data to better service your product.
Process optimization: create a value-added service to get better usage and higher adoption of your product. These value-added offers could include operational, adoption, and information services.
Customer outcomes: recognize that your customers want business outcomes and help them achieve their desired outcomes with IoT.
Learn More About Digital Transformation and Monetizing IoT
You can read the full interview between Librestream and Vele in their blog post, “How to Monetize Services with IoT.” In case you missed it, be sure to catch our interview with Librestream’s COO, Jereme Pitts, in the second half of this series, “The Role of Digital Transformation within Services” series where he discusses the importance of these new technologies and the approach to innovating your business model with IoT in our post, “How to Achieve Business Model Innovation with IoT.”
Additionally, if your company is just starting out on your digital transformation journey, be sure to check out this webinar on IoT by Librestream, as well as TSIA’s “Executive’s Guide to Digital Transformation and Monetizing IoT.” Thanks for reading!