At the height of the industrial economy, productivity was something you could see, touch, or feel – think: crops, cars, and other goods. The shift to a service-based economy has changed that. Productivity is less tangible, measured by more abstract, analytical, data-based means, and as we are seeing, IoT is proving to be one of the biggest disruptors in the service economy by enabling service-based industries to reach customers in new and innovative ways.
Service organizations are using connected assets to not only improve internal processes, but also to enhance current offerings and introduce new ones to the market. The end result: new and diversified revenue streams through the emergence of assets-as-a-service and outcomes-as-a-service models.
Here are four specific examples of how IoT has expanded or created completely new service-based business opportunities:
- Medical device manufacturers – With the greater adoption of the device-as-a-service model in healthcare, medical device manufacturers now have more affordable options that are attractive to smaller hospitals and doctor’s offices, unlocking an entirely new potential customer base. To that end, smaller manufacturers can now operate on a larger scale.
- Field services – Regardless of industry, field services have become more efficient and effective via the utilization of IoT-powered tablets and other connected devices. Real-time information can be shared across networks on-site, and data collected via sensors installed on various pieces of equipment enable preventative field service business models.
- Logistics – IoT has helped propel the logistics industry to new heights, offering a wide range of industries the visibility necessary to proactively prevent supply chain disruptions, resulting in a dramatic reduction in risk-related costs. Whether assisting retail organizations solve inventory problems or helping fleet organizations optimize routes and vehicle service, logistics services are in greater demand than ever.
- Ride share/House share – This is one of the best examples of how IoT actually created a thriving service industry. Through connected devices alone, organizations like Uber, Lyft, and Airbnb are able to introduce a brand new offering. And for those who drive their cars or share their homes, an additional revenue stream that would not have been possible otherwise now exists.
As adoption of IoT continues to expand, the service economy will benefit through using the technology to build on existing business ecosystems and – perhaps more importantly – identifying new ones.
Need help extracting the value of IoT for your business? KORE can help. Learn more here.