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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8 Top Challenges Building a Citizen Engagement App

There’s no way to understand the challenges until you face with the real customers. Here’s what we learned.

The idea of building our second IoT product called Favorsense is to allow citizens to engage easily with the relevant authorities such as local councils.

Other scenarios would be for students on campus making reports about the universities facilities, residents making reports to their housing developers, and many others.

We can use the app for crowdsourcing input from users (in our case, we called crowdsensing – the people can become “sensors”).

Favorsense

8 Top Challenges We Need to Avoid

There’s no way to understand the challenges if we have not built and sold Favorsense. Facing the customers is the only to find out. Some of the challenges are:

  1. Many Copycats – Unlike other IoT solutions that depend on custom-made IoT devices, many other IT companies can easily copy a complete software-based application unless it has a complex algorithm or some form of machine learning.
  2. Challenging to Become a SaaS-based Solution – Many local councils have a long-existing process embedded into their everyday workflow. Thus, it requires many customizations based on their workflow unless they are willing to replace them with a new one. Or the SaaS must be complete with the flexibility to integrate with their legacy systems.
  3. Red Ocean Market – There are many similar solutions – although incomplete or have different features, it seems to be more challenging for the customer to change to a new one.
  4. Procurement Complexity – Introducing intelligent city solutions is a very complex process. Much unclear procurement process due to many stakeholders involved. And this includes budget issues.
  5. Stand-Alone Solution Weakness – Just a citizen engagement solution might not be attractive enough in any tender or procurement process. It’s is typically part of the more extensive project roll-out.
  6. Opening the Floodgate – Not many organizations prefer a very open or accessible channel for users to make complaints or reports. It’s like opening a floodgate of complaints. However, it’s between letting complaints go viral or making the channel more controllable – it’s the local council’s choice.
  7. Legacy Systems – Older IT systems have existed in the current workflow and are thus difficult to integrate with new methods, especially when the data is no longer compatible. It requires massive upgrades and costs.
  8. Citizen Engagement Fatigue – Once the mobile citizen engagement app is launched, it requires constant push and awareness regarding its usefulness. Many similar apps just died quietly after several months in public.

Unlike the first IoT solution, Raqib, these challenges are totally different. It’s not about technical challenges but understanding the users’ needs and current legacy workflow.

It’s easier to sell Favorsense when the customer does not have any complaint or trouble ticket system.

Favorsense Can Help Enforcement

Do you think there are other ways to resolve the eight issues mentioned above? Kindly leave your comments or feedback below. I love to hear your thoughts. Thanks!

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How We Build 3 IoT Products

Three (3) FAVORIOT IoT Products

What’s the best strategy to build a business? To focus on a single product or multiple products? Should we place everything (money) into a single basket or not?

Well, it depends … In almost any Startup, the first product can sucks and your initial vision can change along the way. Pivot is normal in any Startup.

The same thing happen to us — when we build our first product called Raqib. It is targeted for elderly people. But later we pivot the market for Hajj pilgrims.

The second product is Favorsense, which is meant to help the local authorities in handling complaints from the public. It can also be used to collect data and identify the real pain-points of the cities before we start building Smart Cities applications.

Even the target market for Favorsense has been expanded for Campus, Housing Developers, Enforcement Agencies and many others.

The third product is the Favoriot IoT platform itself, which is meant to become an enabler to build new IoT applications. It was offered as Platform-as-a-Service (PaaS). It now has more than 5300 users from 115 countries worldwide and still growing.

So far, the Favoriot IoT platform has been more successful than the rest of the products. The traction has been very encouraging. Furthermore, any IoT deployment MUST have an IoT platform and we want our Favoriot platform to be the preferred choice.