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Enterprise IoT
Tips for justifying an IoT Project
By: Ron Pascuzzi
Ron.Pascuzzi@bridgera.com
You have an IoT Solution idea but you need support.
IoT is complicated and you are not an expert in all fields.
You don’t want to risk political capital or waste time
but are unsure you to proceed with asking for support.
What if you could understand the motivations
and reasons for why your target might support your effort?
This presentation introduces the concepts behind buyer motivations and gives you tools to give your idea
a quick evaluatio...
If you are not selling, no one is
buying
A brief clip about Bridgera IoT
© 2018. All Rights Reserved
IoT Solutions can be complicated because of the cross functional technology required.
For companies that require unique so...
Full-Stack IoT Software-as-a-
Service• Custom Development to Your Spec
• Operating as a Service
Data
Storage Data
Ingestion
Data
Processin
g
© 2018. All Rights Reserved
Bridgera IoT consists of a cloud platform
built o...
Data
Storage Data
Ingestion
Data
Processin
g
Bridgera IoT Feature Library
© 2018. All Rights Reserved
+
In addition to the...
Data
Storage Data
Ingestion
Data
Processin
g
Bridgera IoT Feature Library
© 2018. All Rights Reserved
+
Connect
Iot Device...
Monitoring
& Tracking
Integrate IoT Technology with Bridgera IoT
Client
Side
© 2018. All Rights Reserved
ERP
CR
M
Ingest
S...
What is IoT?
Is it really new?
© 2018. All Rights Reserved
© 2018. All Rights Reserved
Teetering on the Chasm
It is 2018 and in general, the IoT seems to be teetering on the edge of...
© 2018. All Rights Reserved
Teetering on the Chasm
However, the IoT has required 4-5 decades of innovation to get to where...
© 2017. All Rights Reserved
© 2017. All Rights Reserved
© 2017. All Rights Reserved
© 2017. All Rights Reserved
© 2017. All Rights Reserved
© 2017. All Rights Reserved
© 2017. All Rights Reserved
© 2018. All Rights Reserved
Teetering on the Chasm
Moving from Innovators to the Edge of the Chasm is most likely attribut...
© 2017. All Rights Reserved
We carry the equivalent of the computing in our pockets today
that used to fill entire rooms!
© 2017. All Rights Reserved
What is Now Needed …
Engineering Skills
Marketable Ideas (that people will buy)
Just because you can …
… does not mean you should
© 2017. All Rights Reserved
How big is your market?
Who Are You Targeting?
Consumers Businesses
Who Are You Targeting?
Consumers Businesses
60% to 70% of Spending
Buy on Utility
-Is it useful?
-Is it enjoyable?
-Does i...
Who Are You Targeting?
Consumers Businesses
60% to 70% of Spending
Buy on Utility
-Is it useful?
-Is it enjoyable?
-Does i...
Who Are You Targeting?
Consumers Businesses
60% to 70% of Spending
Buy on Utility
-Is it useful?
-Is it enjoyable?
-Does i...
© 2017. All Rights Reserved
1. Enabling a CEO or Board Level Strategy
Increase top line revenue
Sell more product
Sell at ...
© 2017. All Rights Reserved
1. Enabling a CEO or Board Level Strategy
2. Comply with a Regulation or Mandate
3. Positive P...
© 2017. All Rights Reserved
What is an investment made of?
Unit Mfg Cost
© 2017. All Rights Reserved
Operational Cost
Establish a Budget / Cost Model
Sales and Distribution Costs
Fi...
© 2017. All Rights Reserved
t
+
-
$
Expense / Profits Over Time
How much investment is
required?
When will I start to see ...
Variable Cost [Operating Expense]
© 2017. All Rights Reserved
Financial Model
Unit Price VolumeX
Unit Mfg
Cost
Operational...
If you build it,
no guarantees they will come
© 2018. All Rights Reserved
Sell your idea!
Status Quo Do Nothing Premium
Protect
Share
Unit Price $20 $19 $29 $20
Volume 1,000,000 900,000 900,000 1,250,000
Fixed
Co...
Status Quo Do Nothing Premium
Protect
Share
Unit Price $20 $19 $29 $20
Volume 1,000,000 900,000 900,000 1,250,000
Fixed
Co...
Status Quo Do Nothing Premium
Protect
Share
Unit Price $20 $19 $29 $20
Volume 1,000,000 900,000 900,000 1,250,000
Fixed
Co...
Status Quo Do Nothing Premium
Protect
Share
Unit Price $20 $19 $29 $20
Volume 1,000,000 900,000 900,000 1,250,000
Fixed
Co...
Status Quo Do Nothing Premium
Protect
Share
Unit Price $20 $19 $29 $20
Volume 1,000,000 900,000 900,000 1,250,000
Fixed
Co...
Status Quo Do Nothing Premium
Protect
Share
Unit Price $20 $19 $29 $20
Volume 1,000,000 900,000 900,000 1,250,000
Fixed
Co...
Status Quo Do Nothing Premium
Protect
Share
Unit Price $20 $19 $29 $20
Volume 1,000,000 900,000 900,000 1,250,000
Fixed
Co...
Business to Business Example
Value Drivers: Strategy (Initiative)
• Increase revenue by selling something
different (remot...
Business to Business Example
Security and Location Tracking Solution (Bridgera Rescue).
Value Drivers: Strategy (Initiativ...
Proposal Justification
OEM engineers would be able to monitor
performance of installations to improve the
product.
Aligned...
500 West Peace
St.
Raleigh, NC
27603
© 2018. All Rights Reserved
info@bridgera.co
m
www.bridgera.com
Bridgera.com/IoT
Bridgera IoT Solution Economics
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Bridgera IoT Solution Economics

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What basic information do you need to know to align your IoT Solution idea with that of an investor, manager, or potential customer? This SlideShare will introduce you to some of the motivations behind investments and how you might paint a picture as to why they should invest in you.

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Bridgera IoT Solution Economics

  1. 1. Enterprise IoT Tips for justifying an IoT Project By: Ron Pascuzzi Ron.Pascuzzi@bridgera.com
  2. 2. You have an IoT Solution idea but you need support. IoT is complicated and you are not an expert in all fields.
  3. 3. You don’t want to risk political capital or waste time but are unsure you to proceed with asking for support.
  4. 4. What if you could understand the motivations and reasons for why your target might support your effort?
  5. 5. This presentation introduces the concepts behind buyer motivations and gives you tools to give your idea a quick evaluation before you get to deep or let your emotions steer you to far.
  6. 6. If you are not selling, no one is buying A brief clip about Bridgera IoT © 2018. All Rights Reserved
  7. 7. IoT Solutions can be complicated because of the cross functional technology required. For companies that require unique software solutions but do not have software development competencies, Bridgera IoT may be the right option.
  8. 8. Full-Stack IoT Software-as-a- Service• Custom Development to Your Spec • Operating as a Service
  9. 9. Data Storage Data Ingestion Data Processin g © 2018. All Rights Reserved Bridgera IoT consists of a cloud platform built on a big data technology framework. This frameworks enables scale and reliability. The platform ingests data from devices, processes data in motion, and stores data in unstructured and structured formats.
  10. 10. Data Storage Data Ingestion Data Processin g Bridgera IoT Feature Library © 2018. All Rights Reserved + In addition to the platform, Bridgera offers a rich IoT feature library to accelerate IoT application development
  11. 11. Data Storage Data Ingestion Data Processin g Bridgera IoT Feature Library © 2018. All Rights Reserved + Connect Iot Devices Develop Custom Logic. API’s Enable Applications. Web/Mobile UI Bridgera goes a step further by performing all development needed to satisfy a client’s IoT specification
  12. 12. Monitoring & Tracking Integrate IoT Technology with Bridgera IoT Client Side © 2018. All Rights Reserved ERP CR M Ingest Store Process App Server √ Diverse IoT devices connected to one common platform
  13. 13. What is IoT? Is it really new? © 2018. All Rights Reserved
  14. 14. © 2018. All Rights Reserved Teetering on the Chasm It is 2018 and in general, the IoT seems to be teetering on the edge of the Chasm
  15. 15. © 2018. All Rights Reserved Teetering on the Chasm However, the IoT has required 4-5 decades of innovation to get to where it is today
  16. 16. © 2017. All Rights Reserved
  17. 17. © 2017. All Rights Reserved
  18. 18. © 2017. All Rights Reserved
  19. 19. © 2017. All Rights Reserved
  20. 20. © 2017. All Rights Reserved
  21. 21. © 2017. All Rights Reserved
  22. 22. © 2017. All Rights Reserved
  23. 23. © 2018. All Rights Reserved Teetering on the Chasm Moving from Innovators to the Edge of the Chasm is most likely attributed to access to more computing capacity, in smaller packages, that consume less power, and are available at lower prices.
  24. 24. © 2017. All Rights Reserved We carry the equivalent of the computing in our pockets today that used to fill entire rooms!
  25. 25. © 2017. All Rights Reserved What is Now Needed … Engineering Skills Marketable Ideas (that people will buy)
  26. 26. Just because you can … … does not mean you should © 2017. All Rights Reserved How big is your market?
  27. 27. Who Are You Targeting? Consumers Businesses
  28. 28. Who Are You Targeting? Consumers Businesses 60% to 70% of Spending Buy on Utility -Is it useful? -Is it enjoyable? -Does it offer security? Value / Price - Satisfaction Alternatives
  29. 29. Who Are You Targeting? Consumers Businesses 60% to 70% of Spending Buy on Utility -Is it useful? -Is it enjoyable? -Does it offer security? Value / Price - Satisfaction Alternatives Market Size Place, People, Promotion (5P’s)
  30. 30. Who Are You Targeting? Consumers Businesses 60% to 70% of Spending Buy on Utility -Is it useful? -Is it enjoyable? -Does it offer security? Value / Price - Satisfaction Alternatives Exist to Generate Profits Investment Priorities 1. Enable a Strategy 2. Comply with a Regulation 3. Positive Pay Back (ROI)
  31. 31. © 2017. All Rights Reserved 1. Enabling a CEO or Board Level Strategy Increase top line revenue Sell more product Sell at price premium Sell something different Gain efficiency (cost savings) Automation / Labor Saving Energy Savings Raw Material Savings Value Drivers Strategy Initiatives Enabling Investments
  32. 32. © 2017. All Rights Reserved 1. Enabling a CEO or Board Level Strategy 2. Comply with a Regulation or Mandate 3. Positive Pay Back (ROI)
  33. 33. © 2017. All Rights Reserved What is an investment made of?
  34. 34. Unit Mfg Cost © 2017. All Rights Reserved Operational Cost Establish a Budget / Cost Model Sales and Distribution Costs Fixed Development (or acquisition) Cost
  35. 35. © 2017. All Rights Reserved t + - $ Expense / Profits Over Time How much investment is required? When will I start to see a return? Are you prepared to answer the basic questions?
  36. 36. Variable Cost [Operating Expense] © 2017. All Rights Reserved Financial Model Unit Price VolumeX Unit Mfg Cost Operational Cost Sales and Distribution Cost Fixed Development Cost [Capital Expense] + Volume X What do these variables need to be for this equation to be greater than 1.
  37. 37. If you build it, no guarantees they will come © 2018. All Rights Reserved Sell your idea!
  38. 38. Status Quo Do Nothing Premium Protect Share Unit Price $20 $19 $29 $20 Volume 1,000,000 900,000 900,000 1,250,000 Fixed Cost $0 $0 $300,000 $300,000 Op Cost $0 $0 $2 $2 Unit cost $6 $6 $10 $10 sales cost $4 $4 $6 $6 Revenue $20,000,000 $17,100,000 $26,100,00 0 $25,000,000 Profits $10,000,000 $8,280,000 $9,780,000 $2,200,000 Margin 50% 48% 37% 9% © 2018. All Rights Reserved How will you pay for it? Your in the toaster business.
  39. 39. Status Quo Do Nothing Premium Protect Share Unit Price $20 $19 $29 $20 Volume 1,000,000 900,000 900,000 1,250,000 Fixed Cost $0 $0 $300,000 $300,000 Op Cost $0 $0 $2 $2 Unit cost $6 $6 $10 $10 sales cost $4 $4 $6 $6 Revenue $20,000,000 $17,100,000 $26,100,00 0 $25,000,000 Profits $10,000,000 $8,280,000 $9,780,000 $2,200,000 Margin 50% 48% 37% 9% How will you pay for it? Because business has been good, you now have competition © 2018. All Rights Reserved
  40. 40. Status Quo Do Nothing Premium Protect Share Unit Price $20 $19 $29 $20 Volume 1,000,000 900,000 900,000 1,250,000 Fixed Cost $0 $0 $300,000 $300,000 Op Cost $0 $0 $2 $2 Unit cost $6 $6 $10 $10 sales cost $4 $4 $6 $6 Revenue $20,000,000 $17,100,000 $26,100,00 0 $25,000,000 Profits $10,000,000 $8,280,000 $9,780,000 $2,200,000 Margin 50% 48% 37% 9% How will you pay for it? You adjust but trend downward © 2018. All Rights Reserved
  41. 41. Status Quo Do Nothing Premium Protect Share Unit Price $20 $19 $29 $20 Volume 1,000,000 900,000 900,000 1,250,000 Fixed Cost $0 $0 $300,000 $300,000 Op Cost $0 $0 $2 $2 Unit cost $6 $6 $10 $10 sales cost $4 $4 $6 $6 Revenue $20,000,000 $17,100,000 $26,100,00 0 $25,000,000 Profits $10,000,000 $8,280,000 $9,780,000 $2,200,000 Margin 50% 48% 37% 9% How will you pay for it? You explore an IoT Toaster as a way to compete. © 2018. All Rights Reserved
  42. 42. Status Quo Do Nothing Premium Protect Share Unit Price $20 $19 $29 $20 Volume 1,000,000 900,000 900,000 1,250,000 Fixed Cost $0 $0 $300,000 $300,000 Op Cost $0 $0 $2 $2 Unit cost $6 $6 $10 $10 sales cost $4 $4 $6 $6 Revenue $20,000,000 $17,100,000 $26,100,00 0 $25,000,000 Profits $10,000,000 $8,280,000 $9,780,000 $2,200,000 Margin 50% 48% 37% 9% How will you pay for it? Premium Offering Protect Market Share What is your pricing strategy? © 2018. All Rights Reserved
  43. 43. Status Quo Do Nothing Premium Protect Share Unit Price $20 $19 $29 $20 Volume 1,000,000 900,000 900,000 1,250,000 Fixed Cost $0 $0 $300,000 $300,000 Op Cost $0 $0 $2 $2 Unit cost $6 $6 $10 $10 sales cost $4 $4 $6 $6 Revenue $20,000,000 $17,100,000 $26,100,00 0 $25,000,000 Profits $10,000,000 $8,280,000 $9,780,000 $2,200,000 Margin 50% 48% 37% 9% How will you pay for it? © 2018. All Rights Reserved
  44. 44. Status Quo Do Nothing Premium Protect Share Unit Price $20 $19 $29 $20 Volume 1,000,000 900,000 900,000 1,250,000 Fixed Cost $0 $0 $300,000 $300,000 Op Cost $0 $0 $2 $2 Unit cost $6 $6 $10 $10 sales cost $4 $4 $6 $6 Revenue $20,000,000 $17,100,000 $26,100,00 0 $25,000,000 Profits $10,000,000 $8,280,000 $9,780,000 $2,200,000 Margin 50% 48% 37% 9% How will you pay for it? © 2018. All Rights Reserved
  45. 45. Business to Business Example Value Drivers: Strategy (Initiative) • Increase revenue by selling something different (remote monitoring and control service) • Cost Savings / Improve efficiency by reducing labor costs during warranty (remote troubleshooting and updates) • Change business model by selling processed liquid rather than capital equipment. (subscription business) © 2018. All Rights Reserved
  46. 46. Business to Business Example Security and Location Tracking Solution (Bridgera Rescue). Value Drivers: Strategy (Initiative) • Increase revenue by selling something different (An insurance add-on security / emergency service) • Improve quality of service by tracking service providers in route © 2018. All Rights Reserved
  47. 47. Proposal Justification OEM engineers would be able to monitor performance of installations to improve the product. Aligned to a C-Level funded initiative to improve the product The OEM could offer a fix-the-first-time service program with remote monitoring and diagnostics and perhaps even get proactive with maintenance services. Aligned to a C-Level funded initiative to overcome product quality issues Produce an alternative revenue stream (charge the Producer a premium) that exceeds the investment cost The OEM would like to offer the equipment as a service by monitoring and charging for output rather than a one time capital expense. Aligned to a C-Level funded initiative to grow a predictable re-occurring revenue model The OEM is liable in the event their installed equipment fails in a regulatory audit and therefore wants to protect themselves by remotely monitoring usage. Providing a means for complying with a regulation. In this case, the investment and operational costs cannot exceed the penalty and bad press received in the event of a compliance failure © 2018. All Rights Reserved
  48. 48. 500 West Peace St. Raleigh, NC 27603 © 2018. All Rights Reserved info@bridgera.co m www.bridgera.com Bridgera.com/IoT

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