The Internet of Things (IoT) is finally making its way to success. Few people may call it a fuss while its brighter side grabbed by internet-preachers who believe in the various researches, trillion of attached gadgets and its outstanding outcomes. IoT based innovation accelerates our everyday lives driving a significant impact on businesses.
- Innovation in IoT encourages new ways to support customer value, improved services, and sales.
- Various new cost-saving and revenue generation opportunities open ways to new markets, strengthening the old ones.
- Competition reduction will be beneficial for a few businesses and at the same time, increasing threats to the few organization’s economies.
- Innovative organizations will past others and mark their presence in a new adjacent market.
- Most of the industrial and other business models will transform into the software-oriented model, connecting hardware and software.
It doesn’t matter whether you are an IT company or manufacturing industry, or service-based business, it is the time to raise your decision for monetizing a sustainable business with technology and IoT based innovations.
IoT gadgets collect detailed and real-time diagnostic data from various fields. One of the excellent explanations of this can be seen in the agricultural industry, where IoT devices assist in plant management and monitoring in nurseries, gardens, or indoor nursery, etc. Here the IoT connected device continuously monitors for environmental factors such as temperature, sunlight, soil, humidity, rain, etc.
The data collected from these devices are compiled and organized with the help of analyzing past data sets. Few IoT models can also be designed to directly respond to the environmental conditions like if the moisture level in soil falls below an average figure, then it will automatically trigger the watering system to enhance its condition. Such IoT applications achieve an efficient system with increased productivity at a lower cost.
IoT helps businesses to enable iterative revenue generation. Instead of selling a product only one time, companies can offer a subscription-based model where they charge by service or other repeated consumer assistance.
Now you are offering ‘IoT as a service’ to your customers which includes both hardware and software assets so you can monetize your product in various ways. You can provide a monthly or yearly subscription model, premium or regular features, monitoring and maintenance services or other powerful strategies to drive your business growth. One good advantage of a subscription model is that you can create a healthy relationship with your customer by assisting them with fast and on-time services, providing more chances of interaction which was rare in traditional selling model where hardware sellers do not support their consumers after one time sell.
Asset Sharing Model:
The concept of the asset sharing model emerges from the complete utilization of the large or expensive equipment as consumers spend a massive amount on few costly products, but they are not even entirely sure about its usage up to maximum capacity. It is aimed at the maximized use of the product by multiple consumers in the market as they will pay peruse. This way consumer is not bounded to pay for the full price as each user will pay a reduced amount. These kinds of the model are widely adopted in automotive industries such as Uber where one can hire a car, share a car, etc., depending on the need.
The information collected from the IoT devices allows organizations to play smarter in the market. It provides real-time insights with the power of machine learning for processes by minimizing the cost of the operations. Various analytical approach results in the quality data to fulfill the business demand. Gathered data help in quick decision making, inventory cost control, downtime reduction, etc., to smoothly execute the business operations. One can enroll in a machine learning course for a deeper understanding of the analytics and other advanced approaches to enhance your business model.
IoT based outcome model delivers the final desired outcome to the client rather than including them in an involved process like the collection, analysis, processing, etc., providing flexible use of infrastructure and other tools. As a result, the vendor receives increased revenue, reduced negotiation cycle and satisfied consumers. The outcome-based model grants businesses with a fixed price for the desired outcome, eliminating the negotiation phase of the buying cycle.
It’s necessary to understand how your product grabs the attention of the consumers to promote your business. You need an appropriate and effective strategy to monetize your product, and IoT is availing such chances to grow your business model.
Varun Datta is a serial Entrepreneur and a vivid writer who loves to share what he has learnt in his Entrepreneurial Journey. He has founded multiple companies, out of which 4New.io is the most innovative one. It is a waste to energy enterprise which is wholly focused on the production of electricity in order to power the mining of popular cryptocurrencies.