A Strategist’s Guide to the Internet of Things—Part 2

The digital interconnection of billions of devices is today’s most dynamic business opportunity.
by Frank Burkitt

With all these possibilities (from Posting 1), companies run the risk of moving in too many directions at once—and thus being overwhelmed by more focused competitors with more distinctive IoT-related capabilities. Hence the importance of the three IoT strategic models—Enablers, Engagers, and Enhancers. Few companies can take on more than one of these ways of creating value. The Enablers will focus on the underlying technologies and services, from endpoints to network and cloud services. The Engagers will make use of hubs and network and cloud services to provide market-facing offerings. The Enhancers will focus on value-added enhanced services that extend and enrich customer engagement 

“Enablers” that develop and implement the underlying technology
Enablers: Building the Technology:Enablers are primarily technology-oriented companies, such as Cisco, Google, HP, IBM, and Intel. They build and maintain the critical IoT infrastructure that allows Engagers to create their own connected services. 

“Engagers” that design, create, integrate, and deliver IoT services to customers
Engagers: Connecting to Customers: These companies provide the direct link between the IoT and the market. They use the endpoint, hub, platform, and service offerings created by the Enablers to produce services for consumers and businesses. Though most of them did not begin as IoT companies, and many come from non-IT industries—appliance manufacturers, automakers, insurance companies, and retailers are prominent among them—they expect enormous opportunities as the IoT gains traction. 

“Enhancers” that devise their own value-added services, on top of the services provided by Engagers, that are unique to the Internet of Things
Enhancers: Creating New Value: Like the enhanced services that they often deliver, the Enhancers are just beginning to appear in the IoT ecosystem. They provide integrated services that reframe and repackage the products and services of the Engagers. They succeed by finding new ways of creating and extracting value from the data, relationships, and insights generated from IoT activity.