Technology

How IoT Is Spawning Better Business Models

September 23, 2022

Internet of things holds a great future for businesses, because of this; smart devices have become convoluted into our lives. With IoT, businesses can increase their productivity and its benefits are endless, so without wasting your time hire extremely talented mobile app developers.

In this frisky world, where things move at digital warp speed, customer expectations are raising day by day and because of this businesses are feeling ruthless pressure to keep up. But now a bold new wave of IoT technology optimize the environment for the future and helping businesses to serve their clients more adroitly.  

The Internet of Things and other breakthrough technologies are simultaneously multiplying customer options while reinforcing competitive advantage. With these new technologies, businesses are becoming more efficient and compelling. Yet according to the  Harvard Business Review study, “To take advantage of new, cloud-based opportunities, today’s companies will need to fundamentally rethink their orthodoxies about value creation and value capture.”

  • Harley Davidson reduced its build-to-order cycle by a factor of 36 and grew overall profitability by 3% to 4% by shifting production to a fully IoT-enabled plant.
  • Rolls-Royce uses IoT to increase the fuel efficiency of jet engines, optimize flight paths, and improve maintenance. Attaining a 1% reduction in fuel usage translates to a cost savings of $250K per plane, per year.
  • Royal Dutch Shell realized a $1M return on a $87K investment in a remote IoT-based asset monitoring and maintenance solution that tracks activity across 80 oil fields in West Africa. Combined daily oil production across the oil fields is nearly 600,000 barrels.
  • Environmental monitoring, smart metering, renewable plants supervision, and inventory intelligence are among the top areas IoT can deliver the most value for in 2018.
  • 60% of enterprises do not have the analytics capabilities to take advantage of the data generated from IoT.

Here are three ways this rethinking has created a revolution in the marketplace.

 

Rolls-Royce Engines: Pioneering Platform as a Service

“Platform as a Service” is a cloud-based service used to collect and analyze data, and where payment is oriented toward services rather than physical goods. It leverages the IoT to monitor practices with sensors that collect data and also track the product’s performance in real time.

Rolls Royce is one of the best company that excels at Platform as a Service with the help of its TotalCare program. The model used in its engine is known as “power by the hour” and it is charged on a fixed dollar-per-flying-hour basis. The company determinedly manages the engine to accomplish highest flying availability by saving the on fuel costs and reduces environmental impact since the collected data, and the associated analytics, keep engines running at peak efficiency.

 

A Brand-New Business Cycle With IoT

The genius thinking behind the Peloton exercise bike follows the wisdom outlined in the Harvard Business Review piece, “How the Internet of Things Changes Business Models”. Peloton’s model represents a key paradigm shift made possible by IoT: The path to profit goes from “selling the next product or device” to “enabling recurring revenue”, which is much more lucrative.

What makes this possible? For Peloton, it begins with the base product, which retails for roughly $2,000 and is a high-end, indoor bicycle rigged with a Wi-Fi-enabled, 22-inch touchscreen tablet. But that’s not where the cyclical action if you will, is in terms of revenue. Peloton also streams live and on-demand classes, which at-home users can connect to via Peloton’s servers.

 

On-demand customer products

Internet of Thing increased the level of customization unimaginably, businesses can now manufacture customized products, without keeping an inventory. IoT sensors and Machine vision generate measurements and specs implemented through additive manufacturing techniques.

With AI, a mobile app developer can utilize machine learning to add new features in while developing mobile application and can make suggested changes over time.

 

Summing Up

Internet of things holds a great future for businesses, because of this, smart devices have become convoluted into our lives. IoT is important to sense and collect data from connected devices, and then share that data across the internet where it can be processed and utilized for various purposes and decisions. With IoT, businesses can increase their productivity and its benefits are endless, so without wasting your time hire extremely talented mobile app developers.  

To know more about Mobile App Development, contact us at +1(512) 488-3568 or visit Consagous Technologies.

Recent Posts
How To Optimize Your eCommerce Website?
Why Do Businesses Need Custom Web Application Development?
5 Powerful UI/UX hacks for top App Development in 2023
How To Migrate from Ms Dynamics CRM to Dynamics 365?
Cloud security has become an increasingly important field in IT
IoT App Development Trends Changing The World As We Know It
8 Top IoT Development Services Design Practices
How Can Breadcrumbs Lead To Best Web Design And Development?
How Are AI And IoT Development Services Driving The Future?
6 Website Building Steps For Every Web Design Company
10 Ways Of Energy Management With IoT Development Services
Entertainment App Development And Digital Transformation
Salesforce App Development For Business Customization
How Can AI App Development Services Fight Climate Change?
Top Web Design And Development Trend Predictions For 2022
7 Budgeting Mistakes To Avoid In LMS Development Services
How to Improve Virtual Care Experience Using Telemedicine?
Ultimate List Of 10 Mobile App Development Trends For 2022
What Does Metaverse Mean For Entertainment App Development?
Which Sectors Use AR / VR App Development For Navigation?
How Telehealth Improves Behavioral Outcomes In Children?
How To Integrate A Payment Gateway In Salesforce App?
Top 10 Uses Of Deep Learning in Various Industries in 2022
Your Guide To The Best OTT App Platforms For 2022
Why Use AR/VR App Development For Employee Safety Training?
How IoT Drives Future Of Healthcare Application Development?
How Is AI App Development Automating The Logistics Industry?
How To Optimize B2B Marketing Automation With Salesforce?
10 Unique Education Mobile App Development Ideas For 2022
Key Tools to Digital Transformation
Importance of Discovery Process for Mobile App Development
How‌ ‌To‌ ‌Monetize‌ ‌Your‌ ‌Healthcare‌ ‌Mobile‌ ‌Apps?‌ ‌
How LMS Mobile App Development Leads To Better Engagement?
Cost Parameters For Mobile App Development Like Clubhouse
Revamping the Customer Support Services: Salesforce Chatbots
5 Patterns In Entertainment & Media App Development In 2021
10 Things Modern L&D App Developers Should Be Doing
How Does AI App Development Deal With Anomaly Detection?
How can Augmented Reality Improve Customer’s Travel Experience?
Fundamental Practices To Ensure Successful Test Environment
How Salesforce Builds Seamless Marketing Campaigns?
Virtual Fitting Rooms: Augmented Reality Development Services
Salesforce Vs. NetSuite: A Brief Comparison For Right CRM
Mobile Apps and Digital Transformation- A Tech-Backed Trend
Customer Experience's Position in LMS Mobile App Development
Build Apps with the Right Social Media Development Company
Integrating EMR and EHR in Telemedicine App Development
How Does AI ML Go Hand in Hand with the Fintech Industry?
Tech Stack that Supports Augmented Reality App Development
How to Build an Effective Patient Dashboard: Telehealth Software Solutions
E-Learning App Development- Tools No One is Talking About
Know Your Salesforce Mobile App Better With This Quiz
7 Little Tricks to Achieve the Best Results in OTT App Development
What Industry Insiders Say About AI and ML?
Know It All About Smoke Testing
Use AI for the Perfect Business Growth
Salesforce Future- Trends to Stay Aware of
HIPAA Compliant Telemedicine App Platforms You Should Know
Trending E-Learning Tools that You Can’t Ignore!
Why AR/VR Will Transform the Future of Web Apps
Remember These Things During Salesforce Mobile Application Development
How IoT is Changing the Telemedicine Industry
Types of Educational Apps That You Can Launch in 2021!
Cloud App Vs. Web App- What are the Differences and Benefits?
Is Augmented Reality the Future of Social Media?
How Does AI Enhance DevOps in an Organization
How to Make an AI Voice Assistant App?
Everything You Need to Know About an LMS Software!
Trends in Robotic Process Automation for 2021!
Bots and AI: The Future of Software Testing and Quality Assurance!
Benefits of Artificial Intelligence in Medicine in 2021
How to Create a Dating App like Tinder and How Much Does it Cost?
Salesforce Platform: A Simple Automation Solution for Complex Businesses!
Best 5 Real-World Applications of Artificial Intelligence!
Why is it Necessary To Have an App For Your Healthcare Business?
How Does Quality Assurance Work With AI?
How to Create an Educational App: Features, Cost, and Business Models?
Salesforce Marketing Cloud - All You Need To Know!
Manual vs. Automated vs. Integrated- What's Best for Modern App Testing?
Biggest Telehealth Benefits for Doctors and Patients
How AI & ML are Transforming Social Media?
OTT App Development- Features, Costs & A Lot More!
E-Learning Trends and Predictions to Watch Out for 2021!
Reasons Why Outsourcing QA is a Great Idea!
How to Integrate AI & ML to Your Existing App?
Mistakes Digital Marketers Make with Salesforce Marketing Cloud
Create an Amazing Social Media App- A Complete Guide
Essential Features of LMS That you Can't Ignore!
Pressing Challenges in Healthcare for 2021
Salesforce or Zoho- Which CRM Suits your Business Better?
AI and Organizational Change - How This Technology is Changing it All
How is Salesforce Better for your Business?
Video Streaming Apps - Attributes and Development Costs
Impact of E-Learning Apps for Better Education
Telemedicine App Development To-Do List
Why You Can't Ignore QA in 2021?
Impact of AI on App Development & UX
Top E-Learning App Ideas for Aspiring Ed Tech Startups
On-Demand Music Streaming App- Features and Costs
Flutter Linux Alpha & the Google Canonical Connection