BY: CLAIRE KIM
E-commerce has become a trendy business model in the consumer space for IoT (Internet of Things). Many business companies have favored this leading idea of e-commerce over the past few years and slowly this transaction of business has become in the mainstream. Technology has now become a way to embellish a product so that it can be of more value, but this addition does not drastically change the product manufacturer. A business model that can connect is what changes the outcome of the company primarily. Most businesses have caught onto the idea that to create a successful company they must start off with an idea that captures the consumers. However, once that idea is publicly announced, how can they generate a barrier so that other organizations will not be able to take their idea and replicate it in their hands? It’s simpler than it sounds, and the solution can be demonstrated with a toothbrush.
Most toothbrush companies have the main objective to improve dental health for everyone. They express their thoughts by asking customers to buy their product, whether being a toothbrush or any other merchandise. It is crucial, for any business platform to have the ability to put the product in front of as many shoppers as possible. So in a sense, having access to e-commerce is a striking advantage.
Making the toothbrush more creative with technology does not help the business model, but will only do a better job in maintaining better dental health as that is its main purpose. Although the toothbrush is smarter, the business model isn’t. Even if the product increases in value, the aspects of the business model remain the same with no sort of innovation in progression.
Apps that extend connectivity from the toothbrush to another device create more value for consumers, but it also delivers value through the connectivity between the toothbrush and the mobile apps. Also, this approach creates a more competitive advantage that is difficult to replicate.
Subscription plans that come with dental insurance and a supply of floss, toothpaste, and brush heads are a great way to make money outside the “toothbrush market” by going beyond one-time product sales. The value creation of this toothbrush includes all the elements of dental health, by offering a wide variety of tools for dental improvement constantly. The toothbrush and the app allows the organization to acquire new users and interact with their customers more efficiently and conveniently.
Adding connectivity, developers, and data can help reimagine a more close to perfect business model.