Lesson 6: Business Model Innovation & Programming

Business Model

describes the rationale of how an organization creates, delivers, and captures value.

Value Proposition

Your _____ is a core part of your Business Model.

Business Model

It’s a blueprint for the business. It answers the fundamental questions:

• Who is the customer?

• What value do we provide them?

• How do we provide it?

• Why does it make us money?

The St. Gallen Business Model Navigator

A popular framework for thinking about business models. it has 4 dimensions, but we will focus on the “Magic Triangle.”

• WHO are your target customers?

• WHAT do you offer? (The Value Proposition)

• HOW is the value created? (Value Chain)

• WHY is it possible? (Revenue Model)

A good business model has a clear and consistent answer for all four questions.

Traditional Model

Sell a physical product one time.

Traditional Model

Example: You buy a car. The transaction is over. The company doesn’t know how you use it.

IoT Model

The product is connect. It continuously sends data back to the company.

IoT Model

Example: A “smart” car sends data about driving habits, location, and engine health.

This continuous data stream opens up entirely new business models.

One-Time Sale / “Product-as-a-Product”

This is the traditional model, but enhanced with IoT.

One-Time Sale / “Product-as-a-Product”

• How it works: You sell a smart, connected device for a one-time fee.

• Value: The customer gets a better product with smart features. The company gets data to improve future products.

• Revenue: Comes from the initial sale of the hardware.

One-time Sale / “Product-as-a-Product”

Example: Selling a smart thermostat or a smart light bulb.

Subscription / “Product-as-a-Service” (PaaS)

This is a transformative model powered by IoT.

Subscription / “Product-as-a-Service” (PaaS)

• How it works: Instead of selling the product, you sell a subscription to the outcome or service the product provides.

• Value: The customer pays a recurring fee and doesn’t have to worry about maintenance or ownership. The company gets a steady, predictable revenue stream.

• Revenue: Comes from monthly or yearly subscription fees.

Product-as-a-Service

Example:

Old Model: Buy a jet engine for millions of dollars.

PaaS Model: Rolls-Royce offers “Power-by-the-Hour.” Airlines don’t buy the engines; they pay a subscriptions fee for every hour the engine is running. Rolls-Royce uses IoT sensors to monitor the engine and guarantees it will work.

Product-as-a-Service

Example:

Old Model: Buy an industrial air compressor.

PaaS Model: A company provides “Compresses-Air-as-a-Service.” They install and maintain the equipment, and the factory pays only for the volume of compressed air it uses.

Business Model

explains how a company creates, delivers, and captures value.

The St. Gallen framework

The ____ framework helps us think about the WHO, WHAT, HOW, and WHY of a business.

IoT

enables a powerful shift from selling products one-time to selling the outcome as a recurring service (Product-as-a-Service).

PaaS

The ___ model created long-term relationships with customers and predictable revenue for companies.

Rapid Prototyping

Clean syntax allows for quick development to test ideas.

Powerful Libraries

Massive ecosystem for data analysis (Pandas, NumPy), machine learning (TensorFlow), and hardware interaction (RPi.GPIO).

Data-Centric

Python is the de-facto language for data science, making it perfect for handling the “I” (Information) in IoT. It excels at manipulating the data that sensors produce.

IoT

An ___ device isn’t just one value. It has multiple attributes: an ID, location, status, and multiple sensor readings.

with key-value pairs

How can we represent this complex object in our code?

JSON and Python Dictionaries

The Language of IoT

JSON (JavaScript Object Notation)

The universal, text-based standard for sending data between web servers, APIs, and IoT platforms.

Python Dictionary

The perfect way to represent JSON data in Python. It stores data in key: value pairs.

Example: A single sensor reading

The Language of IoT: JSON and Python Dictionaries

Accessing Dictionary Data

You access values by using their corresponding keys inside square brackets [].

Handling Multiple Sensors: Lists of Dictionaries

In the real world, you get data from many sensors. We can store these in a Python List.

List

is an ordered collection of items

Subscription / “Product-as-a-Service” (PaaS)

Processing a List of Sensors

We can loop through the list to process each sensor’s data individually.

Programming IoT Logic: A Simple Rules Engine

• Goal: Create a program that analyzes our building_sensors data and prints a "CRITICAL ALERT" if any sensor reports a temperature above 25°C AND a humidity above 70%.

• This stimulates a real-world rule in a building management system.

Programming IoT Logic: A Simple Rules Engine

Programming IoT Logic: A Simple Rules Engine

Real-world IoT data

structured and is often represented in JSON format.

Python Dictionaries

ideal for holding data from a single complex device (key: value).

Python Lists

used to hold collections of data, like readings from multiple sensors.

looping

By ___ though lists of dictionaries and applying conditional logic (if/elif/else), we can build powerful and realistic IoT data processing applications.