3 Strategic Models for Internet of Things (IoT) Applications

The Internet of Things (IoT) integrates Innovation, accessibility, and complexity. Despite the uncertainty in the IoT business, the technology gives corporations limitless options. It includes an assortment of network-based gadgets. The Internet of Things entails extending internet connectivity beyond regular devices. These devices, which are embedded with technology, may communicate and interact over the Internet. They can be monitored and operated remotely.

IoT devices utilize network connections such as Bluetooth, Wi-Fi, and NFC. IoT gadgets include webcams, printers, routers, Apple Watches and Fitbits, refrigerators, security systems, and speakers (including Amazon Echo and Google Home).

Organizations that offer IoT products and services often select one of the three Strategic IoT Models in order to grab significant market share and achieve success in their respective industries. Among the Strategic Models are:

1. Enablers

2. Engagers

3. Enhancers

Let’s discuss the IoT Strategic Models in detail.


Enablers are Innovation-focused firms, such as Cisco, Google, HP, IBM, and Intel that develop and maintain the required IoT infrastructure for Engagers to develop and sell customized connected services.

Enablers’ IoT value propositions include Endpoints, Hubs, and Network and Cloud services — e.g., infrastructure, hardware, devices, computing, database systems, or software platforms. The market for such IoT products is enormous and expanding at a rapid rate. Some Enablers focus on particular business streams and models, such as only Endpoints.

Estimote, for instance, manufactures miniature “beacons” that can be attached to objects to broadcast Bluetooth signals to cellphones. Engagers deploy these beacons in locations such as retail outlets to collect data on the things picked up by customers and the time they take to make a transaction. Similarly, Intel develops comprehensive IoT systems, which include chips and platforms important to the production of IoT services.


The Engagers utilize the IoT stack to offer innovative services. Manufacturers of various appliances and automobiles, insurance companies, and retail merchants adopt this Strategic Model. Engagers connect the IoT to the market through the use of endpoints, hubs, platforms, and other service offerings. They develop services for both consumers and enterprises.

Organizations that embrace this Strategic Model compete in human-centered markets, including e-commerce, Intelligent homes, connected automobiles, digital retail, intelligent manufacturing, hospitals, and futuristic cities. In addition to collecting their browsing, movement, purchase, and conversation data, Engagers provide crucial location-based data to consumers.

Apple and Google, two market-leading Engagers, leverage their current capabilities to engage customers and offer exciting Customer Experiences to market their Integrating Hubs. By doing so, Engagers establish long-lasting relationships with clients.

In the past, international appliance manufacturers, such as Haier and Whirlpool, used to collect only the most basic information from washing machine consumers, to handle warranties and promote new product offerings. Today’s IoT-enabled washing machines empower the manufacturers to collect useful data regarding machine usage — frequency, temperature gauge, detergent type, and fabric type. These washing machines also offer personalized value-added services, reports on machine condition, repair needs, water and energy conservation, and discount offers.


By redesigning and repackaging Engagers’ offerings, the Enhancers Strategic Model provides enhanced, integrated, value-added IoT services. The Enhancers collaborate with other organizations to develop and provide customized product and service offerings, or even create new Business Models that can replace existing ones.

Interested in learning more about the offerings that constitute the IoT Technology Stack? You can download an editable PowerPoint presentation on Internet of Things (IoT) Strategic Models here on the Flevy documents marketplace.

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I blog about various management frameworks, from Strategic Planning to Digital Transformation to Change Management. https://flevy.com

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Mark Bridges

I blog about various management frameworks, from Strategic Planning to Digital Transformation to Change Management. https://flevy.com