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The Internet of Things (IOT) is a revolutionary force whose time has come. Businesses are being structured anew across all economic sectors and industries. The interconnection will undoubtedly change business models, providing the possibilities that were unpremeditated on.
Real-time Information Gathering
Before the emergence of this IOT technology, business models were unable to gather information efficiently on their products and services. With IOT, there is real time info transmission, and this creates room for improvement and reinvention to meet the customer needs.
Traditionally, in creating a product, the customer’s need was put into consideration. The product was established and released to the market. However, in the cloud-based era, IOT provides room for the product to undergo customization and upgrading through software updates even when it’s still in the possession of the customer. This means that the manufacturer is not done with the product yet, and there is room for improvement.
Cost of Operation
The cost of doing business will considerably come down given the fact a lot of activities will be transacted through the internet on a real time basis. Transport costs will be minimized. Setting up of business premises with storage facilities will be limited, therefore saving on storage charges. It’s now possible to use IOT to detect probable machine breakdown, therefore, acting in time to prevent disruption of the production process.
Efficient Use Of Resources
This is achieved through the tracking of the entire production process from the very beginning to the end. The tools used are also traced, thus reducing loss cases and misplacement that will stall the process of production.
Sell Of Product As A Service
This is one particular area where IOT will change the way business models operate- introducing new products. Instead of customarily offering products for sale, the manufacturer may retain the ownership and the customer will pay a certain value of money for its use for a given period. During this time, the owner can carry out maintenance, upgrading or redesigning. The owner is able to remotely monitor the product to ascertain when it needs any support.
Bold imaginations are unfathomable, and it’s not easy to set a limit to the changes that will result from IOT in business models. However, we can predict a mighty step forward on how companies will handle their operations.
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