Technology makes things better. Companies become more efficient, people stay connected, and economic prosperity encounters a ray of hope. As consumers, our professional and personal lives become susceptible to the world’s ongoing advancements.
TIME + TECHNOLOGY = $$
Technology also leads to money. The Internet, for example, has given rise to several online businesses. 30 or 40 years ago, the idea of starting a company or opening a store usually meant renting a commercial establishment of some kind. You signed a lease and operated your business out of its respective location. It got the job done, but this process required hands-on training and a physical presence. Now, one can make a profit without ever having to step away from their computer or phone.
COULD THE IOT OPEN NEW STREAMS OF REVENUE?
As the Internet of Things takes hold, methods of increasing one’s income are appearing quickly. With 50 billion products set for IoT-connection over the next three years, the Internet of Things could lead to some serious financial growth.
One such instance occurred recently in manufacturing. A German textile manufacturer recently combined legacy machine systems with retrofitted sensor solutions to increase data intelligence and help monitor performance. Sensors were placed along the production lines at key junctures and data was collected from the company’s daily operations. This led to a solid model for reducing downtime. This company saved money by enabling their machines to run at full capacity for longer lengths of time. The business also gained many other important insights from collecting 14,400 data streams during the project, across six facilities and hundreds of machines.
This textile manufacturing company now has the ability to produce more clothing per day, improving revenue from the get-go.
MODELS FOR GENERATING INCOME
That example is quite specific, but there are many IoT-based business models enterprises can use to generate new forms of income. One such method, known as the “pre-paid” model, gives customers access to connected features and services over a set period. Users must then pay for these services by purchasing products at higher price points. A second is called the “pay-for-privacy” model, where a user’s data availability switches from “private” to “public.” A charge is enforced should the consumer want their data switched back again.
Third is the “service subscription” model, which offers consumers indefinite access to connected products and services granted they continue to pay for them. Finally, there’s the “digital/physical freemium hybrid” model. This allows customers limited access to connected services and requires they pay additional fees should they desire premium-level benefits.
The options are wide and varied but, like so many tech-feats before, the Internet of Things is opening several doors for businesses to tap into uncovered torrents of monetary gains. Naturally, these methods have not yet reached mainstream status; the IoT is still considered a birthing technology and certain points require additional sorting as we reach the next phases. Over time, however, the IoT will become more of a commodity and, as costs go down, more opportunities can be discovered along the way. In an IoT-driven world, possibilities for revenue seem grand and endless.
Simi, Josh. “How to Create New Revenue Streams with IoT.” Exosite. 16 Sept. 2015. Web. 27 Apr. 2017.
Nathan, Alec. “Harnessing Data to Create New Revenue Streams with IoT.” Solstice. Solstice Consulting, LLC. Web. 27 Apr. 2017.