How We Struggle to Monetise Our Second IoT Product Aimed at Smart Cities

ENTREPRENEURSHIP STORIES

It is a real story of how painful the Smart Cities market can be.

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Building a second product in the shadow of a complex first creation is a tale of ambition, optimism, and the stark realities of the innovation process. I want to share our real story of creating Favorsense at Favoriot, hoping that our struggles and lessons can light the path for other aspiring innovators in the Internet of Things (IoT), especially those venturing into the intricacies of Smart Cities.

The Inception: A City’s Call to Action

I remember walking through the streets of my city, sensing the pulse of urban life, and observing the stark challenges of urban infrastructure.

The problems demanded attention, from the minor inconveniences of littered sidewalks to the perils of damaged public utilities. It was here that the concept of Favorsense was born.

Raqib, our first IoT product, was already in development. Yet, the city’s heartbeat called for a solution that could resonate with its rhythm.

Thus, we developed Favorsense to transform how citizens engage with their urban environment.

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Embarking on the Favorsense Journey

The journey was not without its trials. While Raqib, a complex health monitoring system, continued on its intricate development path, Favorsense unfolded with a different team and vision.

We believed that building a Smart City application would be simpler. However, there was a maze of unforeseen challenges.

Favorsense was envisioned as a mobile application empowering citizens to report urban issues. It was an elegant solution — simple yet powerful. Through the lens of their smartphones, residents could capture the essence of urban problems, pinning them to the attention of those who could enact change.

The Components of Change

The application’s strength was its simplicity. A photo, a geotag, and a timestamp were all needed to create a genuine and actionable report.

This triumvirate of data became the cornerstone of our solution, accompanied by the Crowdsensing Management Platform (CMP) and the Field-Force module for efficient issue resolution.

Despite its potential, Favorsense needed help to find its financial footing. Pitching to councils, engaging with Smart City conferences, and aligning with alliances like the Malaysia Smart City Alliance (MSCA), we faced the long and convoluted sales cycles endemic to dealings with governmental bodies.

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Market Realities and Strategic Shifts

The numbers spoke of massive potential — over 150 councils in Malaysia alone and a global urban tapestry awaiting a solution like ours. Yet, the transition from concept to revenue-generating product was laden with obstacles.

Our go-to-market strategy had to evolve, pivoting from direct pitches to strategic partnerships.

Learning on the Path of Innovation

In the thick of our efforts, we gleaned valuable insights:

  1. Understanding the Audience: Knowing the needs and pains of our council partners was crucial. It informed our design and pitch, aligning Favorsense with the genuine needs of the market.
  2. The Power of Iteration: Our past endeavors were invaluable but not definitive. We learned to iterate, innovate, and improve Favorsense in response to market feedback.
  3. Flexibility is Key: Our initial market strategies were not silver bullets. We had to be agile, ready to pivot and adapt to the unique challenges faced in the Smart City sector.
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Favorsense: A Smart City Symphony

Favorsense became more than a product—it became a mission. We aimed to harmonize the discourse between citizens and their cities and foster responsive, accountable, and smart urban environments.

In closing, the journey of creating Favorsense is a microcosm of innovation in the IoT space.

It is a testament to understanding one’s audience, the power of iteration, and the imperative of flexibility.

For those embarking on similar endeavors, let these be your guiding principles, just as they have been ours at Favoriot.


The entrepreneurship journey — how it all began:

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Feeling of Being Ghosted — After Pouring Heart and Soul in Project

Startup Journey Stories

What will you do if you encounter this?

Where do I even begin with this one?

Picture this: you’re all jazzed up about a potential partnership, right?

You’ve got this IoT solution that’s like the Swiss Army knife of tech solutions — versatile, innovative, the whole nine yards.

You dive headfirst into the deep end, doing your homework, crunching the numbers, and basically bending over backwards to tailor-make this solution architecture.

You’re talking pricing, materials, the works. And not just any materials, but the crème de la crème, sourced after what feels like a million discussions with various companies who, bless their hearts, took the time to entertain our endless queries.

So there we were, practically oozing optimism, dreaming about the hundreds of sites we were going to revolutionize in 2024.

And then, out of nowhere, radio silence.

Crickets.

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It’s like sending a text to your crush and watching that ‘read’ notification mock you without a reply.

So, what do I do? I chase them down, of course, because hey, maybe they’re just playing hard to get, right?

Wrong.

Cue the next meeting, where I’m hit with the kind of plot twist you’d expect from a telenovela.

Not only have they not decided to go ahead with us, but they’ve also got their eye on other solutions, and — get this — our meticulously crafted, bespoke solution apparently doesn’t meet their ‘standards.’ I mean, ouch.

Talk about a blow to the ego.

But here’s the kicker: there was zero feedback.

Nada.

It’s like our proposal was a free sample they snagged while window shopping. And that’s when it hit me — our proposal was probably used as a bargaining chip or, worse, handed over to their preferred partner on a silver platter.

Talk about feeling used.

Trust me, the frustration was real.

It’s one thing to lose out on a project, but it’s a whole other ballgame to feel like your hard work was just a means to an end for someone else’s negotiations.

It felt like our proposal was hijacked, and not in a cool, action-movie kind of way.

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So, what’s the moral of the story? I’ve learned the hard way that not all partners are created equal.

Trust is like that favorite hoodie of yours — comfortable, hard to find, and easy to lose. And once it’s gone, well, it’s pretty darn hard to get back.

The experience was a wake-up call.

Sure, it’s a bummer to realize that not everyone plays fair in the sandbox, but it’s also a reminder to guard your sandbox a little more carefully.

And maybe, just maybe, to not get too attached to potential partners until they’ve proven they’re not just in it for a free ride on your coattails.

So, to all the would-be partners out there, let’s keep it classy, shall we?

Because nobody likes feeling like they’ve been ghosted after pouring their heart and soul into a project.

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