Lesson 12

Value Creation in the IoTs

Chapter-12 L12: "Internet of Things " , Raj Kamal,

2017 1
Publs.: McGraw-Hill Education
 Value Proposition
• Producing product or provisioning of a platform or service.
• For example, using RFIDs in tracking service for the goods.
• Value creation means creation of a ‘smart
• tracking and logistics service’ from the sensed IDs of the
RFIDs communication on
• Internet, data analytics, data visualisations and mobile
communication for provisions for
• SMS to receiver and delivery confirmation to the sender
Chapter-12 L12: "Internet of Things " , Raj Kamal,
2017 2
Publs.: McGraw-Hill Education
 Value Creation
• Value creation means creation of a ‘smart tracking and
logistics service’
• Using the sensed IDs of the RFIDs and Internet, data
analytics, data visualisations and
• Using mobile communication for provisions for an
SMS to receiver and delivery confirmation to the
sender

Chapter-12 L12: "Internet of Things " , Raj Kamal,

2017 3
Publs.: McGraw-Hill Education
 Sensor Networks
Data Descriptive,
Mobile Service Data Prescriptive Knowledge
Data
Network Information Adaptation and Predictive Creation
Store
Transactions Analytics and and
Location and Other Processing Visualisations Discovery
Services Information
Corporate Database
(a)
Distribution Value
Input Service/ and Offering
Stages Production/ Processing Packaging Marketing
Manufacture
(b)
Fig. 11.5(a) and (b): Value creation using information driven IoT value chain and using
production/manufacture
2017 driven valueChapter-12
chain. L12: "Internet of Things " , Raj Kamal,
Publs.: McGraw-Hill Education
4
 Value Creation Enabling By A Disruptor Media
(Internet)
• The expansion of relationships
• The creation of new behaviours

Chapter-12 L12: "Internet of Things " , Raj Kamal,

2017 5
Publs.: McGraw-Hill Education
 Value Creation Heart Of Any Business Model
• Involves performing activities that enhances the value
of a company’s product or Service (offering)
• Encourages customer willingness to pay

Chapter-12 L12: "Internet of Things " , Raj Kamal,

2017 6
Publs.: McGraw-Hill Education
 Features Of Value Creation Using IoT
1. Addressing to the emergent needs and real-time needs
using predictive analytics
2. Information convergence creating new experiences
for the current product information
3. Enabling the innovative services.
4. IoT enabling offering the product and services which
update using Internet over-the-air (Wi-Fi) and thus
creating synergic value for the product.
Chapter-12 L12: "Internet of Things " , Raj Kamal,
2017 7
Publs.: McGraw-Hill Education
 Features Of Value Creation Using IoT
5. IoT enabling value capture and thus enables recurrent
revenue
6. Adding personalisation and context, and uses
networked products/services.
7. Faster-ecosystem functioning where multiple
companies establish loose relationships among
themselves or establish relationships with big
companies
Chapter-12 L12: "Internet of Things " , Raj Kamal,
2017 8
Publs.: McGraw-Hill Education
 Value Chain
• Means series of actions for creating value
• Start with data collecting using APIs for the
sensors/sensor networks/M2M data or from multiple
information sources
• Then the actions using web APIs, open data, data
from mobile-services network and corporate
databases.

Chapter-12 L12: "Internet of Things " , Raj Kamal,

2017 9
Publs.: McGraw-Hill Education
 Summary

We learnt
• Value creation, the expansion of relationships enabled by
Internet
• Creation of new behaviours as a result
• Performing activities that enhances the value of a
company’s product or service (offering) and encourages
customer willingness to pay.

Chapter-12 L12: "Internet of Things " , Raj Kamal,

2017 10
Publs.: McGraw-Hill Education
 End of Lesson 12 on
Value Creation in the IoTs

Chapter-12 L12: "Internet of Things " , Raj Kamal,

2017 11
Publs.: McGraw-Hill Education