Monetizing the IoT Revolution
Global Projects Center, School of Engineering, Stanford University, 473 Via Ortega, Stanford, CA 94305, USA
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Academic Editor: Wilson Ozuem
Sustainability 2021, 13(4), 2195; https://doi.org/10.3390/su13042195
Received: 31 December 2020
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Revised: 1 February 2021
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Accepted: 8 February 2021
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Published: 18 February 2021
(This article belongs to the Special Issue Sustainable Marketing, Branding and CSR in the Digital Economy)
Academics and businesses alike tend to fail at understanding how the IoT revolution is monetized. We outline three main categories of how IoT will impact business models: (a) improved customer matching and tracking of marketing returns, (b) individualized offers and pricing when consumer demand and price elasticities can be identified, and (c) smart device and usage monitoring that allows for outcome-based contracts and servitization. Data convergence creates context-based-intelligence, which enables a shift from using consumer profiles for targeted advertising to individualized offers and pricing. The required depth of both consumer data and understanding of context will require collaborative efforts between companies and blur the lines between industrial- and consumer-IoT applications. Outlining concerns for privacy and cybersecurity, we find that consumer demand for decision-simplicity and relevant content aligns with the business model of “free” services in return for data, despite consumer concerns relating to data collection.
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Keywords:
Internet of Things; business models; smart cities; big data; consumer data
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited
MDPI and ACS Style
Donner, H.; Steep, M. Monetizing the IoT Revolution. Sustainability 2021, 13, 2195. https://doi.org/10.3390/su13042195
AMA Style
Donner H, Steep M. Monetizing the IoT Revolution. Sustainability. 2021; 13(4):2195. https://doi.org/10.3390/su13042195
Chicago/Turabian StyleDonner, Herman, and Michael Steep. 2021. "Monetizing the IoT Revolution" Sustainability 13, no. 4: 2195. https://doi.org/10.3390/su13042195
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