IoT can improve quality of life
Upgrading an off-line product to an IoT enabled connected version is technically a small step but is a giant leap for businesses.
IoT disrupts the traditional business models and inevitably leads towards OPEX-based product-as-a-service operations.
Apart from manufacturers direct relation with the end-user, the primary functional benefits for the end user offers a huge variety of possibilities and payment&service models.
IoT generated ‘Big Data’ is interesting and new beneficiaries appear who will use the data.
Customer centric service level agreements improve and pay-per-use models are based on: usage, data or content.
This implies though that apart from providing the hardware, service providing and ‘product operations’ becomes a critical key activity of a manufacturer.
It’s very interesting to see which product manufactures embrace IoT and move on towards offering product-as-a-service in their market segments. Who will use IoT to disrupt markets?
When the product maintains on the balance sheet of the manufacturer, the IoT-connectivity can’t be left to ‘best effort’. Connectivity with the remote asset is critical for maintaining and monitoring the service level and supporting the new payment models.
It is interesting to see which IoT connectivity solutions and standards are promoted at this week’s Mobile World Congress in Barcelona.
For a lot of product manufacturers who want to make the big step to IoT, the key question will be:
With who to cooperate? Which IoT-standard to choose and what’s the longevity of the telecom solution?
If IoT standards are settled and telecom longevity matches the product lifespan, the changes for IoT will increase.
Product suppliers taking the big step will conclude that IoT does not only improves quality of their businesses but also their customer’s quality of life.