The IoT, or Internet of Things, will require entirely new monetization strategies, says John Bonney, CFO of FinancialForce.
“Sometimes IoT feels like the wild west of corporate finance. Nobody knows quite what success looks like. There are, however, some things we can predict about our data-centric future.”
“Soon IoT will be so widespread that businesses will adopt entirely new approaches that better capitalize on its potential. That will require CFOs to be prepared to support entirely new monetization strategies and billing models.”
“Companies are just beginning to explore how to monetize IoT to drive stronger business growth and increase customer satisfaction (and interaction). Yet, we can already see a few common use cases emerging. These include: usage-based billing, optimized revenue streams, customer-driven business decisions.”
“Companies must also be aware of how accounting standards may now apply when a business adopts a recurring revenue or usage-based billing model. Recurring models are distinct from one-off product sales and can easily become complex for finance teams.”
Read the full article at: ww2.cfo.com
Learn more about monetizing IoT in our guide, Monetizing the Internet of Things: 7 Questions.