ECE3502 – IoT Domain

Analyst
A PA R N A M O H A N T Y
A S S I S TA N T P R O F E S S O R S R .
SENSE
 Rubrics for theory
• Digital Assignment – 2
• Quiz - 1 (10 Marks)

• CAT – I - 30 Marks (15% weightage)

• CAT – II - 30 Marks (15% weightage)

• FAT - 100 Marks (40% weightage)

• Additional Learning - 10 Marks

 Rubrics for Lab
• Task based experiments – 5/6.

• Midterm lab as per Dean Academics direction (awaiting)

• FAT – 40%

• Online – Software based tasks execution

• Offline – Hardware based tasks execution (once institute opens)

•
Rubrics –
Form a group of maximum 6 students
J-Component
• Before CAT-I
• Literature review should be complete
• Novel idea should be ready
• Basic necessary concepts should be ready
• Need to submit a report
• Before CAT-II
• Proposed System, Architecture, Mathematical Model/Simulation model
• Need to submit a report
• Before FAT
• Complete proposed working system should be ready
• Need to submit a report.
 Text Books
1. Arshdeep Bahga, Vijay Madisetti, “Internet of Things: A hands-on Approach”, University Press,
2015.

2. Adrian McEwen & Hakim Cassimally, “Designing the Internet of Things”, Wiley,Nov 2013, (1 st
edition)

3. Claire Rowland, Elizabeth Goodman, Martin Charlier, Ann Light, Algred Lui,” Designing
Connected Products: UX for the consumer internet of things”, O’Reilly, (1 st edition),2015
 MODULE-I
HTTPS://
WWW.JAVATPOINT.COM/IOT-ARCHITECTURE-MODELS
HTTPS://DANIELELIZALDE.COM/MONETIZE-YOUR-IOT-PRO
DUCT
/
 IoT Architecture

There is not such a unique or standard consensus on the Internet of Things (IoT)
architecture which is universally defined.
The IoT architecture differs from their functional area and their solutions.
However, the IoT architecture technology mainly consists of four major
components:
Components of IoT Architecture
Sensors/Devices
Gateways and Networks
Cloud/Management Service Layer
Application Layer
Stages of IoT Solutions Architecture

There are several layers of IoT built upon the capability and performance of IoT elements that
provides the optimal solution to the business enterprises and end-users. The IoT architecture is
a fundamental way to design the various elements of IoT, so that it can deliver services over the
networks and serve the needs for the future.
Following are the primary stages (layers) of IoT that provides the solution for IoT architecture:
Sensors/Actuators: Sensors or Actuators are the devices that are able to emit, accept and
process data over the network. These sensors or actuators may be connected either through
wired or wireless. This contains GPS, Electrochemical, Gyroscope, RFID, etc. Most of the sensors
need connectivity through sensors gateways. The connection of sensors or actuators can be
through a Local Area Network (LAN) or Personal Area Network.
Gateways and Data Acquisition: As the large numbers of data are produced by this sensors and
actuators need the high-speed Gateways and Networks to transfer the data. This network can be
of type Local Area Network (LAN such as WiFi, Ethernet, etc.), Wide Area Network (WAN such as
GSM, 5G, etc.).
Edge IT: Edge in the IoT Architecture is the hardware and software gateways that analyze and
pre-process the data before transferring it to the cloud. If the data read from the sensors and
gateways are not changed from its previous reading value then it does not transfer over the
cloud, this saves the data used.
Data center/ Cloud: The Data Center or Cloud comes under the Management Services which
process the information through analytics, management of device and security controls. Beside
this security controls and device management the cloud transfer the data to the end users
application such as Retail, Healthcare, Emergency, Environment, and Energy, etc.
7 IoT Business Models That Are
Transforming Industries
Describe the top seven IoT business models you can use to increase revenue, adoption, market
share, and the profit of your product. 
Now-a-days many companies are jumping into building IoT products without a business plan.
They are able to build the product from a technology perspective, but they are not able to make
money. And that’s simply not sustainable.
What is an IoT Business Model?
“A business model describes the rationale of how an organization creates, delivers, and
captures value.”
This definition illustrates the responsibility Product Managers have to deliver products that focus
on value. In the IoT world, it’s very common to see products that simply add sensors to an
existing product, display the data on a dashboard, and call it “value.” That should explain why
companies are not getting traction in the market. The value is not really there.
IoT business model can be thought of as having two parts:
Focuses on capturing and delivering value.
Leverages the unique characteristic of IoT products of having 24/7 connectivity to your
customer’s environment to produce innovative and differentiated value.
IoT Business Model #1: Subscription Model

Since IoT products have 24/7 connection to your customer, you can leverage that connectivity to
develop a recurring-revenue business model. Now instead of having a one-time sale, you can
offer a subscription model in which your customer pays a fee in return for continuous value.
A subscription model enables your IoT product to implement many of the benefits available to
software-only products. Basically, you are introducing an “as a Service” business model for a
system that includes both software and hardware.
By using SaaS models as a reference for your IoT business model, you can explore creative ways
to monetize your product, not only with a monthly subscription, but also by providing paid
upgrades or even implementing a “freemium” model, if your strategy supports it.
Contd…
Another benefit of this IoT business model is that it empowers your company to foster an active
relationship with your customer. In the past, hardware manufacturers used to “throw their
products over a wall”, meaning that once they completed the sale, they rarely interacted with
their customer again.
IoT products break down that barrier. As your device gathers more data in your customer’s
surroundings, you will be able to learn more about your customer and provide more valuable
features tailored to their specific needs.
Some common IoT applications using the subscription model include “monitoring as a service”
and “predictive maintenance as a service”.
IoT Business Model #2: Outcome-Based
Model
The outcome-based IoT business model is an example of an innovative approach enabled by IoT
products. The idea is for customers to pay for the outcome (or benefit) the product provides, as
opposed to the product itself.
Remember the saying, “People don’t buy drills, they buy holes?” Well, the outcome-based
model works in the same way. Customers pay for the “holes,” as opposed to paying for the drill.
For example, think of a water pump manufacturer. In the past, their business revolved around
selling pumps, and they measured success by meeting quota on a certain number of pumps per
quarter.
But let’s be real. Customers are not looking to buy a pump. They are looking to move water from
point A to point B for some purpose. They need water to cool another system, to water plants, or to
power a generator. Moving water from point A to point B is the real need of this customer.
Imagine a sophisticated pump manufacturer who creates a next-generation pump that monitors the
amount of water it pumps. The manufacturer can now talk to the customer in the language they
care about: the amount of water pumped (similar to “holes drilled”). In this case, the customer is
not buying a pump. Instead, they are paying a variable fee per month for the amount of water they
source. They are paying for the outcome, which is water sourced.
Your company can be creative when implementing an outcome-based IoT business model. For
example, you (the manufacturer) can decide whether you’ll lease or sell the pumps. If the customer
is interested in the outcome (water sourced), then they might not want to have a depreciating asset
(the pump) on their balance sheet. Therefore, having them pay for the water sourced, as opposed to
paying for the pump itself can reduce the customer’s objection to buying expensive equipment.
IoT Business Model #3: Asset-Sharing Model

A big concern when buying expensive equipment is whether the customer will be able to utilize
the equipment to its maximum capacity. This is where the idea of sharing assets comes into play.
We are starting to see this IoT business model already with car-sharing or bike-sharing
companies. Think about it like this: why do I need to pay for the full price of a car if it’s going to
be parked outside my house 90% of the time. Could I just pay for the amount of car I use?
IoT has the potential to solve this problem, and we are already starting to see solutions with
self-driving cars, virtual power plants, shared drones, etc.
This IoT business model revolves around selling your extra capacity back into the market. The
goal is to maximize the utilization of your IoT product across multiple customers. That way, each
customer pays a reduced price and you are able to get faster market penetration, compared to
when a single customer has to pay for your complete product.
Contd…
Example: deploying smart batteries for commercial buildings at Stem, Inc. The batteries provided
energy to the building, and if there was extra capacity, we sold that energy back to the Grid.
In this IoT business model, the batteries are a shared asset between the building and the Electric
Grid. This approach allowed our customers to get our systems at a reduced price since they
didn’t have to carry the burden of paying for the whole system, whether they use the extra
capacity or not.
You might be thinking, “Why not just install a smaller battery?” That’s a fair question.
Sometimes, they don’t make smaller batteries (or smaller pumps, or turbines, etc.). Most of
these systems are very complex, so you can’t get custom sizes. You can either throw away that
extra capacity or figure out a way to monetize it. That’s where the intelligence built into IoT
products can help you.
IoT Business Model #4: The “Razor Blade” Model

Your IoT product can be designed for selling other products. In this model, you might sell the IoT product at
cost or even at a loss since the goal is to get the product in the customer’s hands, so you can start selling your
other products. This business model is sometimes called the “Razor Blade” model, where the goal is to sell
more and more disposable razors, and therefore, the razor handle is usually sold at cost or even given away for
free. Example: all-out liquid.
This business model can be very lucrative for products that have consumables needing constant replacement.
For these types of products, it is very important that the customer never run out of the consumable.
Otherwise, the product loses its value proposition.
You see, the challenge for manufacturers of these products is that there might be a gap between when the
consumable runs out and when the customer reorders it. Sometimes that gap becomes permanent, and the
customer never buys again. But what if the product itself could reorder its consumables whenever it needs
them?
That would provide value for the customer AND for the vendor. Therefore, the goal of this IoT business model is
to turn a “normal” product into an IoT product to automatically reorder its consumable before it runs out.
Here are two examples of products using this IoT business model:
Brita’s Infinity Water Pitcher: Automatically reorders its filters so you can continue using the pitcher.
HP connected printers: Automatically reorder ink cartridges.
Amazon also uses this model with their Amazon Dash Buttons. These “connected buttons” come
pre-configured to order a specific product, say detergent or toilet paper. When you press the
button, it re-orders that item from Amazon and it arrives at your door within a few days.
Amazon’s goal is to provide “contextual shopping”, meaning the ability to reorder a product right
when you need it. By introducing this clever connected product, Amazon is reducing the barriers for
you to re-order any product you need. In this case, the Amazon Dash Button is not a revenue maker
in itself, it is just a vehicle to sell other products in Amazon’s catalog.
Although each example above is a consumer product, the “razor blade” IoT business model is also
valuable for enterprise or industrial products. Basically, any product that needs to reorder parts is a
candidate for this IoT business model. Whether you sell industrial hoses, bearings, tires, etc., this
IoT business model can reduce your customer’s friction when buying your product and can enable
you to provide a better experience to your customers, ultimately differentiating your offer.
IoT Business Model #5: Monetize Your
IoT Data
The value of the Internet of Things is in the insights you can derive from the data you collect. The
question is, who benefits from those insights?
Think about companies like LinkedIn or Facebook. They collect a huge amount of data from all of us
(often for free) and although they provide us (the user) with value for providing that data, the real
value is provided to advertisers and other third party companies that use the data to promote their
products and services.
In this case, LinkedIn or Facebook are tools for collecting data to offer it to advertisers. That’s how
they make money.
The same business model works in IoT. You can build your product to provide value to the end user
and also to collect valuable data you can then sell to a third party. In this approach, you can offer your
IoT device at no cost to eliminate the buying friction for the end user. The goal is to deploy as many
devices as possible to collect data. You are looking to build a network effect. The more devices you
have out there, the more attractive your data proposition will become to third parties.
Contd…
There are many examples of products leveraging this IoT business model. Think of energy
efficiency devices installed in buildings to monitor their energy consumption. The building
manager benefits from this data, but utilities or other aggregators can pay a hefty sum to
receive aggregated data from thousands of buildings.
The same is true with devices that monitor your driving habits. They provide you with some
interesting insights, but insurance companies get the most value, as they are able to understand
driving patterns for thousands of people.
This model can be a line extension of your core business, meaning you can start by solving the
needs of your end user, and later you can decide to branch out into monetizing their data. These
two models don’t conflict with each other as long as you make your customers aware of how
their data will be used and make sure to safeguard their privacy.
IoT Business Model #6: Pay-Per-Usage

Having sensors on your hardware device means you can monitor your customer’s environment and how
much they use your product. This opens the door to an innovative IoT business model where you charge
your customer for the amount of time they are actively interacting with your product.
In this IoT business model, the goal is not to make money on the device itself. Instead, you are using the
data produced by the IoT device to track usage. Example: post-paid services
Here’s a good example of this IoT business model: Metromile—Pay-per-mile insurance
Metromile is a San Francisco-based insurance company. Their goal was to create an innovative pricing
structure for their car insurance product while solving the challenge of San Francisco residents who don’t
use their car very often. The solution was to create an IoT product that tracks how much people use their
car.
Using this data, they can calculate risk and therefore provide a per-mile price for the insurance. Notice
that in this example, the customer is not paying for the usage of the IoT product. Instead, customers pay
for the usage of the device monitored by the IoT product (the car).
IoT Business Model #7: Offer a Service
You can use an IoT product to offer a new service (or enhance an existing service) to your
customers. In this case, It is not about an “as a service” type model. This means providing a
service, with real people involved.
few examples of this IoT business model:
Use an IoT product to monitor machinery, predict maintenance, and then sell a maintenance
contract.
Install IoT devices in a smart building to measure energy consumption. Then sell an energy
audit and energy optimization services.
Implement IoT devices in a manufacturing floor to measure efficiency and throughput. Sell
consulting services to optimize your customer’s process.
As you can see, there are endless possibilities of how you can use IoT products to gather data,
and then provide a service using the insights you collected. Keep in mind that you can combine
this IoT business model with some of the previous ones to increase your profits. For example,
you can sell the hardware, monetize the data, and then offer a service based on insights.