The Internet of Things continues to expand and is expected to increase by 30 percent in 2016. With increase in new devices connected each day, companies are likely to take advantage from IoT. Read to get ideas on how to take advantage from IoT expansion as a business.

1. 1
How to Succeed in
the IoT
© 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.

2. 2
How to Succeed in the IoT
© 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.
The Internet of Things continues to expand, and many companies are likely to take
advantage in the future. A new report from Gartner estimated there will be 6.4 billion
"things" connected to the Web in 2016 – a 30 percent increase from 2015. The firm also
predicted this number will climb to 20.8 billion by 2020. To put it another way, 5.5 million
new devices will be connected each day. Adopting subscription billing, among other
approaches, can help businesses embrace the IoT.
Even more exciting is the amount of spending these devices will generate. According to
Gartner, the IoT will create $235 billion worth of spending on services in 2016, up 22
percent from 2015. The most connected things will be created for consumers, but
enterprises will generate the most spending.
"The IoT will
create $235
billion worth of
spending on
services in
2016."
The IoT will be so prominent over the next few years, some experts
believe companies that ignore the trend could become irrelevant,
as panelists at Fortune's Global Forum argued. Firms may need to
reinvent themselves to keep up with the changing times, and those
that can't find a way to take advantage of connected devices may
find themselves obsolete in the near future.
How can businesses take advantage of the IoT and remain
relevant? Here are some ideas to consider:

3. 3© 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.
Consider your industry
Gartner's report determined the highest amount of spending in the IoT industry is
currently in the enterprise category, which comprises devices used in multiple industries
as well as industry-specific connected tools. Right now, the majority of spending in
the IoT comes from specific verticals. To start, businesses should consider the industry
they already operate in and determine how to harness devices to improve business.
Don't ignore the consumer market, though. Gartner predicted consumer-oriented devices
will generate the most spending by 2020.
Address security
Security is a key concern for both consumers and enterprises. Consumers may fear
connected devices in their homes could contain data that would be harmful if leaked.
Companies could accidentally disclose proprietary information if their connected devices
were compromised. To obtain success in the budding IoT market, companies will need to
face security head on and invest in best-in-class solutions to keep customer data secure.
Great customer service
Aside from having the capabilities to prioritize security in IoT devices, companies should
focus on customer service. Having a trusting relationship with a business doesn't replace
the need for high-level security, but it helps put customers' minds at ease. Luckily, an
added benefit of IoT is better customer relationships.

4. 4© 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.
When companies have access to their customers' data, they will be more able to see
how customers use their products. This insight will help them continue to iterate and
improve these devices. In addition, devices create a direct link between companies and
their customers, allowing for seamless communications and engagement opportunities.
The IoT will transform the business world.

5. 5© 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.
Creativity and innovation
As the IoT space becomes more competitive, device manufacturers will need to innovate
to continue to add value for customers. Brands will need to constantly think about the
customer experience and how they could improve it or add more functionality to their
devices. The companies most likely to experience success will be able to think outside of
the box and think about what's next in their industries.
A solid subscription billing model
Another way to support customer service is with a good subscription billing model.
Subscriptions are emerging as the most effective way to monetize connected devices.
Without a solid billing system, companies will experience unnecessary churn and lose
the potential to build an engaged customer base over time. On top of this, companies
should create numerous subscription plans to meet customer needs. In most cases, a
one-size-fits-all payment method won't be effective. As companies add services to their
devices, they may also want to add premium pricing models.
The IoT is likely to completely transform the way business is done in many industries.
How can your business take advantage of this trend and remain relevant over the next
decade?

6. 6© 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.
About the Author: Bryta Schulz
Bryta joined Vindicia in 2013 and serves as Senior Vice
President of Marketing. She is responsible for building brand
awareness, creating go-to-market strategy and promotion, and
driving growth. With over a decade of executive level marketing,
product management and PR experience, Bryta has led
marketing teams in enterprise technology and SaaS companies.
Her experience includes heading product marketing at GoGrid,
PGP, RSA and Symantec and business development and
product management positions at Xcert, Thales, and
Persistence Software. Bryta holds a MA in Translation from the
Johannes Gutenberg University Mainz and an MBA from the
University of Reutlingen.
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© 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.