C h a p t e r 1
Among the greatest impacts of the IoT
is its facilitation of entirely new business
models. One of the most popular
transitions has been from single sale–
based to service-oriented business
models.
Companies like equipment manufacturers
have historically based their business
models on machine sales. These one-
time transactions created profit,
but engagement with the customer
often ended thereafter. Thanks to
the IoT, instead of focusing on one-
time transactions, businesses are now
exploring recurring revenue streams by
offering their products as services.
For instance, those same machinery
manufacturers are transitioning from
selling equipment at a one-time cost
to offering usage-based services
encapsulated in pay-per-use models.
This kind of model is only made possible
through the availability of data and
connectivity to track machine usage for
the customer and business. For many
companies, the service-oriented concept
represents a radically different business
model that provides benefits for both
customers and businesses alike.
For customers, the major benefit is cost
savings. Instead of making large, up-
front payments for machinery, they can
simply pay for what they need, ensuring
EMERGING IOT BUSINESS
MODELS
Daniel Ranzal
Electronics Hardware Engineer, Bosch
The IoT helps empower my
business with asset tracking that
enables inventory management.
It also helps with transparency
and traceability of materials
and products throughout the
production chain."
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8 Industry Experts Discuss Trends in the Internet of Things
