Today as more opportunities are created through IoT, we are seeing traditional hardware companies, whose intellectual property (IP) was the hardware that it manufactured, increasingly seeing the value in software and, in turn, changing their whole business and IP strategies to fit in with the new era. However, IP, hardware or software, is only as good as its protection and the business’ ability to successfully monetise it. Our recent research revealed that despite nearly nine out of 10 organisations admitting they are worried their software may become compromised, many are still not taking the threat seriously with over half (52%) leaving themselves vulnerable to IP theft by not using software IP protection tools.
Our most recent analysis of the software licensing and monetization market shows that some core value propositions endure even as the technology and its applications undergo significant evolution and change. Software licensing solutions were originally created with the goals of preventing piracy and protecting revenue of software products.
My previous article on monetizing IoT spoke about some of the key drivers of that space, the 10 main IoT areas, the importance of ecosystems, and other major considerations. In this follow-up article, I’ll focus on the 4 Values Framework that we’ve used to help several of our clients – both large, established companies and emerging startups – define their IoT strategies.
I recently published a whitepaper about software as a key enabler of improved business processes and increased customer satisfaction.
Software is not a new concept in embedded and hardware products. For years, devices have become increasingly intelligent, more programmable and more connected. What has changed today is that the trickle of product evolution has become a deluge of business revolution. Market-leading hardware manufacturers who have transformed into software businesses are finding the most success for themselves, while also driving success for their customers. As examples, General Electric has pivoted its business to the Industrial Internet, while Rockwell Automation has firmly positioned itself as the Connected Enterprise company. Cisco Systems’ Cisco ONE software program marks a decisive shift in how its portfolio is packaged and monetized.
I recently published a three-part article on SandHill.com, the first of which talks about building and monetizing an IoT-ready business in a new, disrupted world. I point out that while product innovation can drive significant growth in the IoT, more needs to be done to overcome fundamental business challenges such as monetizing distinctive value and maintaining a competitive advantage. In many cases, it is advisable to devote more resources to business model innovation than to pure product innovation, as it may have a greater impact on your profitability.
Nostradamus predicted a number of interesting trends for 2016, such as a single world language that many speculate will emerge from the Internet. It is surprising, then, that he did not foresee the accelerated pace of technological innovation and adoption we are currently witnessing. Had technology forecasting existed in the sixteenth century, he might have predicted the disruptive impact this would have on business today.
I feel very fortunate to have the opportunity to work with Viavi Solutions. It has been a pleasure to learn how Viavi deploys software monetization solutions to increase revenue, improve its customer experience, and strengthen relationships. Viavi leads with great products and has implemented operational efficiencies to respond to its customers’ needs more quickly. Several years ago, it was great if a company could master one of these areas, but today, cutting-edge companies like Viavi are leading in all three functions: customer intimacy, product leadership, and operational efficiency.
I recently penned an article for Intellectual Property Magazine in which I offered practical tips for combating the rising tide of software piracy. Far from being a victimless crime, software piracy takes a significant toll on the software industry, costing developers worldwide over $60 billion a year in lost revenues.
The WSJ recently ran an interesting article on the key challenges of moving to the cloud.
“When on-demand enterprise applications emerged about a decade ago, they were touted as a cheap and more flexible alternative to buying software outright – a move that comes with upfront infrastructure and licensing costs, on top of ongoing fees for maintenance, support, and upgrades. But in practice, these promises have been hard to fulfill”.
The age of the Internet of Things (IoT) has dawned and we are heading toward a future filled with software-driven intelligent devices. To give you an idea of the magnitude of this transformation, IDC is predicting that there will be 30 billion units installed worldwide by the year 2020. Because every device in the IoT is connected, a whole new breed of tech company is emerging, forcing many traditional companies to innovate and go to market differently.