What can a toothbrush teach us about IoT business models?

Cool article explaining the potential of the Internet of things with the example of a toothbrush!


E-commerce has become increasingly popular as a business model for the Internet of Things in the consumer space.

A toothbrush example, as simple as it may sound, helps demonstrate that technology (software, connectivity or data), when viewed as a feature of a product, is hardly a game-changer for the product maker; opening the product to external innovation by developers can create a competitive advantage that is difficult to replicate; and, e-commerce companies see devices not as a source of profits, but as a part of the customer acquisition costs, serving as a vehicle for customer acquisition and engagement (Amazon Echo or Xiaomi phones are not much different, in this respect).

Broadly speaking, a business model describes the rationale of how an organization creates, delivers and captures value. We add to that the question of how an organization creates a sustainable competitive advantage (a barrier to entry that is difficult to replicate by competitors).

It’s simpler…

Read the entire article from TechCrunch here: What can a toothbrush teach us about IoT business models?


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