Contents
Introduction
In this conversation with Mike Fahrion we unravel the secrets to successful IoT go-to-market strategies. We discussed the importance of customer-centric approaches, product-market fit, scalability, and the game-changing impact of AI in IoT analytics.
Mike raised a crucial point: not only does the technical infrastructure need to scale, but processes within the enterprise must scale to meet variable demand.
We elaborated on the risks of being a customer-driven organization and several other topics vital to running a successful IoT business.
Video
Meeting Notes
Strategy vs. Tactics in IoT
- “Strategy is the overall plan… tactics are really all about the steps you take to get there.” - Mike Fahrion
- Many IoT projects fail due to a focus on technology over customer relationships.
- IoT is about delivering business value, not just technology.
- Three key areas to address: solution, customer relationship, and company organization.
- Importance of scalability, not just in technology, but also within the organization.
Go-to-Market Strategy
- Importance of understanding decision-makers, approval processes, and customer relationships.
- Build an ecosystem around the customer and minimize friction.
- Look for sources of friction and reduce them, whether technological, in the purchasing process, or in the customer’s understanding of the problem.
- Ensure the product addresses a customer’s pain point and that the customer is willing to change behaviors to adopt it.
- Understand customer’s paint points and alternatives.
- Ensure the product addresses a priority issue for customers.
- Make products zero-touch to reduce the need for customer support.
Finding Initial Customers and Scaling
- Transition from initial customers to a broader customer base through in-depth interviews and understanding of the customer’s organization.
- Customer acquisition costs and lifetime customer value are important considerations for a scalable business.
- IoT products imply buyers have domain expertise, while IoT services require integration skills.
Organizational Growth and Market-Driven Organization
- Market feedback, customer usage, and competitor response are essential.
- Achieving the right company culture is critical for long-term success.
Importance of Educating the Market
- Educate customers about the value and potential of a cutting-edge idea.
- Invest effort, time, and money to educate the market.
- Maintain an edge over competitors by continuously evolving the company’s structure and approach.
Embracing a Culture of Continuous Improvement
- Build a company culture focused on continuous improvement.
- Seek opportunities to enhance the customer experience.
- Embrace customer feedback in product improvement.
Avoiding Defensive Strategies
- Focus on delivering a superior customer experience instead of building defensive strategies.
- Build relationships and understand the customer ecosystem.
Learning from Failures
- Recognize failures as learning opportunities.
- Understand the complexity of achieving product-market fit and go-to-market strategies.
- Value actual customer spending as a measure of product success.
AI and Machine Learning in Data Analytics
- AI and machine learning are valuable in converting overwhelming amounts of data into real business value.
- AI excels at finding patterns in large datasets, which can be difficult for humans.
- Tools for implementing AI and machine learning are becoming more accessible, making it easier to extract value from data.
- AI has the potential to identify issues and provide corrective actions in various scenarios, such as self-service coffee machines and quality measurements on the factory floor.
- AI is expected to provide tangible business value by converting massive amounts of IoT data into actionable insights.
Let me know what the most valuable takeaway for you!
