May 4, 2020
Why you have to check out today’s podcast:
- Learn the step-by-step framework that helps product managers define, communicate, and drive their IoT product vision forward
- Identify costly blind spots in your IoT product pricing strategy
- Learn how to provide enough value that makes sense for the customer to adapt your IoT solution
Daniel Elizalde is an expert on all things IoT. He works as VP-Head of IoT at Ericsson. He’s helped train over a thousand product professionals at Stanford’s Continuing Studies program.
In this episode, Daniel shares how he helps product leaders create winning products and gain the skills they need to confidently and efficiently manage any IoT product.
“One of the challenges when defining value for IoT (Internet of Things) is having a clear understanding of who your customer is.”
– Daniel Elizalde
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Topics Covered:
02:38 — Backstory of Daniel’s IoT career, starting from the era of telemetry to M2M to IoT and now becoming the most visible expert when it comes to IoT
04:07 — Daniel leading the area of thought leadership for Ericsson in IoT
05:23 — Daniel’s checklist: 12 Steps Every Product Leader Should Know to Create Profitable and Scalable IoT Products
07:05 — Complexities in developing IoT products
08:39 — Business model defined - a way of collect, deliver and collect value from your customers
09:13 — How IoT opens the door for new business models and innovation for companies
09:50 — If you're able to monitor your product, 24/7 in the field, how can you actually leverage that to provide new and innovative ways of monetizing and adding value?
11:44 — If it is a subscription per se, how can you make sure that you continue to add value to your customer
12:28 — Understanding the true Capex of IoT
14:09 — How Daniel coach companies to think about how to charge for hardware upfront
14:34 — What is going to reduce the friction on your customer site through business model experimentation
19:25 — Software companies struggle to figure out how to build-partner purchase, deliver-sell hardware being in a completely different ballgame
24:29 — Pricing challenges: how do you provide enough value that makes sense for the customer to adopt your IoT solution
Key Takeaways:
“The challenge with IoT is that to provide an end to end IoT solution, you have to put all those things together with the technical complexity that entails. But of course, with the pricing complexity, and the business model complexity, and they go-to-market complexity” — Daniel Elizalde
“Companies are starting to figure out that this is so complex that you can't just put something together and launch it to market and hope it sticks. You have to do your homework from a product management perspective.” — Daniel Elizalde
“That's the value of product management and IoT strategy is, hopefully, you can be two, three steps ahead and have some inkling that it will be worth it before you commit to building something like this.”— Daniel Elizalde
“IoT opens the door for new business models and innovation for companies.” — Daniel Elizalde
“The role of a product management team here is to figure out understanding the complexities of IoT and then being able to model different approaches and test them with the customers. There's no one size fits all.” — Daniel Elizalde
“Sometimes figuring out that your competition IP, not all other types of similar solutions, but just what are the other alternatives that the customer can realistically do for less money.“ — Daniel Elizalde
Resources:
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