Getting started with IoT

Emerging business models
Data optimisation
In this model, businesses deploy devices to their customers,
generally at low/no cost to the user, to gather additional
data around another service they provide. The data gathered
is valuable to both the user and the company and can help
companies retain users by understanding how their product
is used. It can also help the company drive more efficiency in
their business.
Examples: Smart meters with home readout units for the
customers. Customers understand their energy usage and
utility providers benefit from better data about usage patterns
to create efficiencies in supply and customer relations.
(customer value service).
Charge per usage
With IoT, a business receives detailed device usage patterns
data. This model allows a business to supply a service in a
customer’s facility but the customer is charged on a pay per
use model; only paying for the time they use the device.
The customer does not buy the product, but the output
from the use of the product, and will pay a variable amount
depending on usage pattern. This model can be used to
reduce the capital costs of equipment by purchasing the
service on an operational basis.
Examples: In aviation it is common for the jet engine to be
paid for based on the amount of time the engine spends
in flight. The engine manufacturer owns the engine and is
responsible for maintenance to ensure the engine spends as
much time as possible in use.
Efficiency of operation
This is based around a company deploying IoT applications
that will result in efficiency savings within a customer’s
current business. The company deploying the service will
generally provide it at no cost to the customer but take their
revenue from any reduction in the price of the service.
This benefits the customer as they would generally pay
less than they currently pay and it also generates additional
information from the IoT data.
Examples: There are examples of this type of model in the
smart city and facility management space where a company
will use IoT to make a service more efficient and agree to a
form of reduction in current costs, with the company keeping
the savings generated.
Asset sharing
One of the enduring problems with sharing of assets is
understanding the time each asset is used by each user
so they can be charged based on time used. It differs from
the product usage model as lots of different people utilise
the asset.
Examples: In the transportation sector, bike and car-sharing
programmes run on this basis.
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