How IoT is influencing the future of Business Models

IoT

With devices controlling every aspect of your life, the Internet of things has slowly seeped in our lives as a powerful element. The future of IoT not just for households but also businesses will bring in many changes that are impactful and will drive growth in continuous momentum. It is worth noting that IoT surely counts as one of the disruptive technologies that are anticipated to reach $1.1 trillion by 2026 according to a Fortune Business insights report.

The role of traditional models of conducting business is still intact but with newer models emerging on the scene the hybrid combination of news v/s old is going to prove fruitful for the future. From smartphones to laptops to almost all the appliances we own today, everything can be controlled with our mobiles and can be modified with the touch of a button.

Unbelievable, but true!

5 things we bet you didn’t know about the Internet of things

We all view IoT as a futuristic technology which is its right place, but did you also know that way back in 1981, it was formulated out of necessity. Yes, Intriguing right! The first IoT came into existence before the birth of the WWW browser with the entire credit to Coke. Engineers at Carnegie Melon wanted to see the contents of the machine and also wanted to check if the content of the machine was cold or not. The sensors in the machine were connected to a network and gave a text display enabling anyone with the internet address to understand the contents of the machine and at what temperature.

1.Fewer connected Mobile devices compared to IoT devices

IoT is massively bigger than the web itself! Gartner displayed in ones of its researches that by the end of 2019 there were 14.2 billion connected devices in use and anticipates that by 2021 this will 25 billion.

Source: Cisco

This huge upsurge in the connected device is an opportunity lost if organizations find no meaning in it.

2.Smart cities hold a bulk of devices

Growth enables has informed that the IoT market is currently influenced by three major sections namely Smart Cities holding its position at 26%, Industry of Internet of Things(IIoT) at a close call holding 24% and health care toiling at 20% of the pie. Organizations in these streams can do a hell of a job by integrating their product or idea into IoT devices in these three sectors.

3.‘Powerless’ technology

The Internet of things yesterday and today are markedly different. Earlier, the IoT sensors could collect data if and only if there was a source of power. For successful IoT deployments, a wired source of power was a must which totally is against the purpose of IoT. But now, Powerless sensors have seemed to invade this old school of thought because they no more require the power of electricity but can also work with the power of light, heat and radio frequencies.

4.IoT hairbrushes

Wait, did I just say an IoT hairbrush?

Oh yes! Surprising but it is true that IoT has entered in every little facet in our life. So, Yes we were talking about the Hairbrush right!

Source: IoT for all

L’oreal came up with this path-breaking ‘hair coach’ which when connected to the internet uses microphones and sensors to understand the hair-brushing patterns the user. An app installed on the user’s phone data is being sent to the app summarizing the usage pattern of the consumer. The data is sent over to the cloud and is used by the company to provide recommendations to customers about therapies.

Successful companies implementing IoT

5.The Bird Scooter

The bird is a multi-million dollar company now, thanks to its adoption of the Internet of things technology. Its current business model echoes Pay-for-use which lets people rent their IoT scooters and pay as per the time they have used. Users can enjoy riding in these cool scooters without the need to own them. The future of IoT is Sureshot bright!

Source: Tech crunch

Coco-Cola — The fizz giant

With more than 50,000 soda fountains surviving on the Internet of things technology, Coke saw an 8% leap in its serves and a reduced intake of calories to the tune of 9%. The new freestyle vending machine of coke initially was experimented as a sample which later became a great tool to assess customer needs.

Source: Wired.com

The revolutionary Apple Watch

In the world of wearable devices, Apple is leading the roost with a huge market share not just because it is from the house of Apple but because it has the qualities of being one. Internet of things embedded smartwatch is considered the best tool because it is useful for optimizing exercises with its links to several body tracking apps. It also captures abnormalities in the vital organs and instantaneously reports to an emergency service so that the person can avail immediate help.

IoT in business models

Technology is like the Universe — It just doesn’t end!

Our focus on the Internet of things has not brought us to the lag end of the article. IoT has and can further generate new business models all set to rattle the present ones with its sheer impact.

Let us analyze the three most popular IoT led business models

AS-A-SERVICE-MODEL

The decrypt off-sales models are now been replaced with sophisticated models to conduct business. Now with a much more personalized service-based model businesses and customers have stood out to gain. With cloud-computing and other emerging technologies, this model works really well for them. What started off as a Software-as-a-service(SaaS) got converted into more than just software.

The much distinguished electrical equipment company Edison Electric Co. changed its business model thanks to IoT. It now makes wireless sensors that can be used by manufacturing plants on pipes and conveyors to monitor pressure, temperature and vibration. These figures can be viewed remotely, prevent perilous mishaps and enhance productivity.

Circular business model

This combines the goodness of the As-a-service-model and emphasizes on the refurbishments of components at different stages of manufacture. The main objective is to use it rather than own it, generate it instead of splurging it and recycle instead of throwing it.

Customized business models

IoT has been highly effective in helping organizations to produce on-demand products reducing the need to stockpile inventories. One can predict the tastes and preferences of the consumer before producing it or the data that is collected with the help of Machine learning can be used to make major strategic movies that would eliminate faulty analysis.

Speaking of which, Mtailor is a popular custom clothing company that employs a smartphone for measurements. It is done when the customer provides a no more than a 30-second video through their mobile device. It also has claimed that with this service their accuracy is 20% more than a human tailor which is corroborated by positive reviews it has garnered.

Summing up

IoT is evolving and there is no stopping it. With the spunk that IoT brings, organizations can take advantage of custom IT solutions to enhance the prospects of better predictability.

IoT is looming above everyone’s head; it’s hard not to notice it!

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Chapter247 Infotech is a full service software partner specialized in solutions for Web, IoT, Analytics, AI and Cloud Technologies.