The advent of the Internet of Things (IoT) has ushered in a variety of advantages for businesses both big and small to leverage. These myriad benefits help to drastically reduce the gaps between users and the digital world. IoT development has consequently become an integral technology for successful digital transformation. In fact, the technology has played a role in bringing digital transformation to almost every sector.
As devices become more intrinsically connected and learn how to push, pull, and act upon data more efficiently and effectively, they are increasingly able to generate new revenue funnels. Thus, IoT technology actually makes it possible to create viable business models.
It must be noted that IoT is constantly evolving. For companies to use it properly, they must stay up-to-date on the various changes and improvements occurring in this field. This is the key to identifying the correct IoT usage for your business endeavors. With that said, here are some of the most popular IoT applications currently being used for accelerating growth and increasing revenue.
1. Platform-Based Business Model
While not the newest type of IoT-based business model, platforms are one of the most useful entries on this list. Platform-based models connect producers and consumers of a niche to streamline symbiotic marketplaces. Product creators can generate revenue directly from transactions, and consumers get access to a multitude of leading options.
Interoperability and interconnection are essential to platform-based business models. Since many tech titans are comprised of several systems both inside and outside their companies, the platform business model is a popular choice to unite endeavors and insights. This is illustrated best by examining Seattle-based developer and e-commerce giant Amazon.
Thanks to IoT, Amazon’s Alexa voice recognition allows the company to collect both third-party data and partners. As a premier voice recognition platform, Alexa enables Amazon to charge companies for application development. This, in turn, increases Amazon’s revenue and reach. While voice recognition has now been present for a few years, it’s only expected to grow and mature in the near future.
2. Outcome-Based Business Model
Paying for the end result is the main thought behind outcome models. This is a popular choice for transportation services. In these cases, an outcome-based business model enables a consumer to obtain a vehicle without having to purchase it completely on their own.
If you’re not planning to utilize a vehicle for its entire life, why spend a significant amount of money for the short time you’ll have it? For example, instead of buying an electric scooter, you can rent it for a specified duration of time.
Here are the main benefits that an outcome-based business model brings to the electric scooter rental industry:
- Versatility in application
- Lower communication costs
- Reduced battery cost
- Secure payments
- Green policy promotion
- Asset distribution
3. Asset Tracking
Asset tracking is the primary reason why IoT technology has been heavily adopted by supply chains. Why, you ask? Because it allows both shipping and logistics businesses to cost-effectively optimize their supply chain visibility.
IoT-connected devices are able to identify, monitor, and track practically any type of asset in real-time. As a result, it essentially eradicates any chance of item loss or theft. And because IoT allows the supply chain to be constantly updated, asset tracking also helps to drastically reduce inefficiencies. After only a few weeks, many supply chains can analyze their operations to elucidate where bottlenecks or obstacles are occurring.
4. Preventive Maintenace
Besides giving supply chains insight into their operations, IoT can also help protect assets in terms of maintenance. Equipment is one of the biggest expenses for numerous industries. Before, maintenance needs for these costly assets had to be identified through on-site inspections. But this process isn’t perfect, and it can often lead to decreased efficiency and financial loss.
Thanks to IoT, businesses can check on equipment maintenance needs virtually any time they want to. IoT-connected devices can be deployed to constantly monitor equipment remotely and track maintenance schedules. This can radically reduce downtime by preventing any potential malfunctions.
Perhaps best of all, this IoT niche is improving with each iteration. Current offerings in this space are much more sophisticated than their counterparts from only a few years ago. Building a foundation for this now can set you up to become an expert in a type of business that will flourish with more time.
5. Compliance Monitoring
Each year, manufacturers spend millions of dollars on compliance. Quality assurance checks to comply with safety, economic, and environmental regulations can quickly multiply expected costs. Fortunately, IoT is helping businesses mitigate these expenditures to a great extent.
As with asset tracking and preventive maintenance, IoT allows companies to check in on and monitor compliance metrics. With IoT in the picture, the process of compliance not only becomes much more responsive but also reduces costs. A constant flow of real-time information means that safety, economic, and environmental measures can be rapidly refined to prevent any penalties and preserve the well-being of workers.
How Will You Use the Internet of Things?
We hope this short guide has given you some insight into how you can apply IoT to your business endeavors. Remember, IoT is a versatile, adaptable technology — this list really only scratches the surface of what it’s capable of.
Which IoT use case are you interested in applying? If you need help deciding, take a good, hard look at your business holistically. Consider your operations, market, and long-term goals. Doing this should help clarify which IoT application can benefit you the most.Tags: internet of things, internet of things app developer, internet of things app developers, internet of things app development, internet of things developer, iot, IoT app developer, IoT app developer Seattle, iot app developers, IoT app developers Seattle, iot app development, iot app development seattle, iot apps, Seattle app developers, Seattle app development, the Internet of Things