How to unlock data-driven revenue sources in your company with an IoT tech partnership.
Joint ventures with technology partners are key if you want to quickly build data-driven business models. This article provides you with information about real-life use cases and crucial information how manufacturers, retailers and insurers can create new revenue sources, based on data-signatures enabled by IoT Venture from Darmstadt, Germany. Two points should be of particular interest to you. First, IoT venture enters into strategic partnerships with traditional companies. This creates a shared data pool through which both partners can generate new business. Second: In the Accelerator Program of the German Federal Ministry of Economics, a decisive change of perspective from hardware manufacturer to enabler for data-driven business took place. This change of perspective could also be an extremely important impulse for you in the strategic orientation of your company.
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IoT-Venture is a scale-up from Darmstadt, Germany, that is targeting revenues of more than €12 million in 2022 and is currently raising a Series A funding. The company is enrolled in the Accelerator Program of the German Federal Ministry of Economics. Frontscale team member Holger Trautmann is co-founder of IoT-Venture and supports business development. The company manufactures GPS trackers that are installed in e-bikes or attached to dog collars. In parallel to the hardware, the company also develops the digital ecosystems in which the data is collected and made available for further processing.
The hardware trackers are developed and sold in collaboration with product manufacturers and retail chains. The technology partnership creates a strategic joint venture from which both sides benefit. For example, the hardware trackers record user movement data in a GDPR-compliant manner. These are recorded in a data pool and can be further processed in aggregated form - on both sides. The partner companies therefore do not have to build up internal capacities for the topic of data-driven business, but can dock the topic externally to their own company through IoT-Venture.
Impulse: The technology partnership creates the opportunity for the company, which has been working without data up to now, to enter the data business quickly and with the appropriate clout. Parallel to the consideration of building up one's own capacities in the area of data business, it therefore makes absolute sense to look for strategic partners who have a knowledge and development edge.
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Change of perspective: hardware manufacturer or data company?
As already mentioned above, IoT-Venture is currently in an accelerator program for the US market. In the course of this, the company's own pitch deck was revised. The decisive change in perspective came about in collaboration with mentors from the US tech scene. The original assumption of developing high-quality IoT hardware quickly gave way to the new orientation: IoT Venture enables companies that previously had no data-driven business model to enter the data business. This may be existential for companies, because the near past has shown that data-driven business models win against those that operate classically.
This can be illustrated by the example of TESLA's integrated insurance, the price of which is based on the data signature, i.e. the actual driving behavior. IoT-Venture follows in these footsteps and enables such use cases for manufacturers, retailers and insurers.
The bottom line: the current business world is data-driven and knows only two species: Hunter and Prey. The question everyone must therefore ask themselves in the data context is this: Am I the cat or the mouse?
If you are interested in transforming your company to a data-driven business, I highly recommend you read our article on data-driven business.