There was a time when products were everything and after sales service were considered to have least importance from strategic and revenue generation standpoint. Traditional business models that were manufacture driven business models were the need of the hour and profit making was restricted to selling the products or devices.
This idea came to be challenged by the concept of IOT (Internet Of Things). This concept is defined as a conglomeration of items that are enabled via software and various forms of network connectivity to collect data and access each other across a wide range of existing network infrastructure. There emerges a defined link between our physical world and the virtual world that will invariably bring in automation in all fields.
Where are businesses heading with IOT?
With the estimation that more than 28 billion things may be connected to the Internet in the coming 5 years, it is but natural to assume that cloud connection is the next big thing in business portals. The improvements are not just expected to happen around devices that will become smarter and sharper but also around their incredible services that will compel people to subscribe to them for complete access. From wearable bracelets to cars and dogs, everything will probably become service layered. IOT is therefore looking at the possible boom in the global Internet population and is working towards an acceptable platform to prove the effectiveness of the plan.
Let us take a look at how businesses are moving towards IOT:
- Gaming manufacturres:
Micro console gaming manufacturers believe that having their own version of the Android S and consequentially, their own community, game store and market place changes the way users look at these games. While the user can be a developer himself, the revenue is earned when he purchases game credits. This coupling of products and services is definitely proving to be a much better source of revenue and a more efficient way of keeping ahead in the business.
- Connected Cars:
Not only can the owner track directions but also get walking directions to where exactly it is parked. Automated notices and alerts are sent to avoid over speeding and maintaining safety issues. Smart phones connected to these cars prevent the usage of mobile phones while on the go. These after sales services will be highly appreciated by people who look for ways to keep a check on safety even when absent from the site.
The end benefits that connected IOT devices can provide are:
- Easier lives: you can turn on the heater even before you reach home.
- Improved efficiency: you can turn on the washing machine at night when the electricity usage gets reduced.
- Anticipate what services you might need.
It is quite obvious that with so many potential benefits from IOT connected devices, this will create new winners and leave behind manufacturing-driven business models. The change in business systems will be for good, from the emotional as well as the revenue point of view; it will not only be a guaranteed success but also be a precursor of many more things to come.