Monday, October 20, 2014

IoT: Value of Connected Devices?

Can We Quantify the Value of Connected Devices? - Sunand Menon - Harvard Business Review
"The Internet of Things may already feel like an overused buzzword, but the value is real. A seminal article in this month’s issue of HBR by Michael Porter and James Heppelmann starts off with a definition of what the “Internet of Things” (or “IoT”) really is – a collection of smart, connected devices or products that, when pieced together well, can yield new functionality, reliability, utilization, and capabilities that were previously not deemed possible.

A key challenge in quantifying the value of IoT is in valuing the data assets it creates. In many companies, these types of data assets...

valuation of their data assets begins with a commercial business case. In this case the typical questions are: what’s the data, how do customers use that data, and therefore how can it be sold?...
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