How To Boost Your Business With IoT Software Solutions
Business owners are gradually coming around to the fact that they need to digitise their company and incorporate advanced technologies to take their business to a new level. With society moving ever closer to full connectivity and society 5.0, firms are seeing the advantage of this network.
So today, we would like to focus on the Internet of Things (IoT) — a network of connected devices that can transform any industry, from transportation to healthcare, and anything in between.
While we are looking at the world of IoT, we will provide an insight into possible business models utilising IoT. In addition, we will look at some of the main opportunities and obstacles to using IoT.
What IoT Is And How It Works
IoT is another rapidly growing technology along with Machine Learning (ML) and Artificial Intelligence (AI). The Internet of Things is a network that includes a range of devices that can interact via IP connection without human intervention. This type of technology also feeds into Big Data analytics, in an attempt to better understand our customers. What is IoT software? This is software that helps users control IoT devices.
When we mention the term IoT, we don’t imply a simple set of sensors. We have used sensors for a long time to gather and analyse data. The fundamental difference of IoT is that sensors are networked with analytical and/or control systems. As a result, we generate a standalone network. There is a data exchange within the network, and the system can make decisions autonomously and control all devices. We use AI components and Big Data algorithms in IoT.
Today, the IoT concept is related to billions of physical devices connected to the Internet, which analyse and process a vast amount of data. Because of wireless networks and processors, it is possible to transform everything to IoT — a refrigerator or a plane.
IoT is a technology that allows companies to generate much more revenue. According to Business Insider, the income from IoT exceeded $212 billion worldwide in 2020. They also predict that the IoT marketplace will grow to over $3 trillion by 2026.
IoT Business Models To Consider
Choosing an optimal business model helps your business capture and deliver value, leading to revenue multiplying. There are different models depending on the type of product, service, or desired outcome. We will list several possible business models when integrating IoT into your business, and making IoT device management software.
A subscription model
IoT products provide a 24/7 connection to customers’ activity, so you can make use of it and deliver the best value to customers. With a subscription model, you can continue providing necessary services to customers rather than make a one-time sale. In addition, IoT products allow you to gather more data about customers, so you learn their behaviour, and you can offer more personalised services. A customer will pay a subscription fee, either monthly or annually, for your help.
Need Top-Quality IoT Software Development Services? Then Go Wombat Is At Your Disposal — Contact Us!
An asset-sharing model
This model is suitable if your IoT network implies a massive network for manufacturing where a few customers may be involved. Its primary principle is to sell your extra capacity back into the market. For example, each user will pay a reduced fee since the total cost will be distributed among all users. One customer doesn’t need to pay for the entire system.
An outcome-based model
You need to persuade users WHY they need to use your IoT product. It means that everybody is interested in the outcome the product provides, not in the product itself.
For this reason, it is crucial to create a suitable promotion campaign for your services and explain what benefits your customers will obtain eventually. Customers pay for the benefit, remember.
A data monetisation model
Everything is simple here — you can sell gathered data to third parties. Of course, it cannot be confidential data that must be protected from third parties. Data for sale means the data that can improve customer experience.
Such giants like Facebook monetise information successfully — it gathers data and sells it to advertisers who can promote their services more effectively.
For example, IoT in smart cars. Sensors collect data, which can then be sold to insurance companies since insurers need to get acquainted with users’ driving habits and build flexible insurance programs.
The “razor blade” model. A well-known business model is when the primary product is sold at a low price, but supplementary items required for the primary product use are sold at a high price, like selling a blade without a razor. This model will suit industrial enterprises which require a constant reordering of consumables.
Your IoT product will make reordering automatic once consumables start running out. It will improve customer experience and will impact their loyalty.
A pay-per-usage model
Your customer will pay only for the amount of time they spent using your product. It is an excellent model for finding out how much each customer uses your product. You don’t generate revenue from the product itself. Instead, you track the use of the IoT network by customers to improve the service level.
A model for additional services
With the help of IoT, you can monitor the performance of your customer’s business and offer different services based on their business type and demands.
This can have the effect of turning regular customers into loyal customers, and you can retain them by providing relevant services. For example, when you measure the energy consumption in smart buildings with IoT devices, you can sell a contract for an energy audit.
Seven Opportunities Of IoT Which Can Boost Your Business
Now we can discuss in detail what ways of improving a business with IoT can be beneficial for you. In a bid to reduce the amount of information within this article, we will list the primary opportunities.
Inventory management
IoT enables automatic control options for inventory management. It becomes easier to track assets in the supply chain and detect quickly if something is missing. Furthermore, an IoT-based surveillance system installed in factories can help prevent theft.
Data sharing
It is the primary goal of any IoT system. You have access to user data, and you can monitor the behaviour of users to improve their experience and improve your service level. Valuable data provides you with a comprehensive view of users’ demands, purchase cycle, allowing you to see how to promote your product more efficiently.
Opening new services
A predictive maintenance algorithm integrated into an IoT network allows you to monitor the performance of your products. As a result, you can form new types of services and products beforehand when customers don’t realise they need them. With this done, you will be able to introduce new products and explain to customers why it is advantageous to their business.
Marketing strategy building
With comprehensive monitoring of customers’ preferences and behaviour, it is possible to create a more effective marketing strategy to generate revenue due to an increasing customer satisfaction rate. Furthermore, IoT helps you personalise each offer, depending on the customer base.
Real-time information
Gathering real-time information is precious in the retail sector. Real-time data may revolutionise business since you get insights into current processes, providing significant benefits. For example, retailers can stock products on-shelf and contribute to profit growth due to efficient stock management.
Omni-channel services
Due to installed Internet-connected devices strategically placed around a shop, information gathered from different sources is analysed within a single system. This information helps identify customer demands quickly and understand what products should be purchased in large quantities.
Cost reduction
As IoT contributes to many automation processes, it eliminates human labour and leads to cost reduction. For example, IoT-enabled sensors can measure air quality and temperature to comply with safety measures. The same applies to an inventory management process that can be implemented automatically without possible errors.
IoT software engineering should be entrusted to a trustworthy company that has considerable experience. Go Wombat is one of them. Contact us to make your solution real!
How To Start IoT Monitoring Software Integration
Before you choose a business model, you need to identify its potential and determine whether it is acceptable for your business. Simply put, you need to weigh up all the advantages and disadvantages of future IoT networks and software integration.
Research
This is your first step — you need to research the market. Try to identify customer pain points, challenges they face, and why your IoT product may become a game-changer. Remember that your business approach should pursue two goals — solve customers’ pain and generate revenue.
Business Model
Then you will be able to determine what business model is the most suitable in your case. The development of IoT software that will meet the technical requirements of the IoT network that you plan to integrate, should be delegated to skilled specialists who know how to implement it. Go Wombat is an expert in software development for IoT and AI-based, Data Science, Natural Language Processing solutions.
Issues You May Face In IoT Software Implementation
There are some bottlenecks in IoT software implementation, and we would like to share this information with you. So as to avoid possible issues and be prepared for emergencies.
Compatibility issue
First, many enterprises face the problem of integrating the operations of their existing equipment with a system of integrated IoT sensors. Different manufacturers adhere to different technical standards, so it could be challenging and time-consuming to make a new system interact with another system. This could lead to software conflicts which may take a lot of time to resolve.
Performance issue
As the IoT network implies the connection of a range of devices, performance may be damaged if one device malfunctions. You need to consider this fact because one chain link may become the reason for the total system failure.
Data security issue
Finally, we cannot forget about the increasing number of cyberattacks, so the problem of data security is acute. The IoT network has many more bottlenecks than a regular network since a large number of connected devices open more opportunities for cyber attackers.
These attacks can disrupt the functionality of the whole network or even change some functionality algorithms leading to improper functionality. For example, in the healthcare sector, improper functionality may harm users’ health or even be fatal. So the protection of an IoT network is a significant challenge and one which we must pay careful attention to.
Build The Best IoT Software With Go Wombat
The Go Wombat company doesn’t use a wide range of technologies for software development. Instead, we focus on Python programming language and Django framework to build a web application, CRM and ERP systems, Machine Learning/Computer Vision/IoT software, and other types of software.
As for the front-end, we use React library and JavaScript. In addition, we use React Native for hybrid app development if you need mobile software.
Working with Go Wombat is a safe and secure option as we use the most suitable and relevant tools to build your IoT software and integrate it properly. We are an IoT software development company you can trust.
Furthermore, our Chief Security Officer is in charge of software protection, and their years of experience ensure what specific security algorithms should be included in your software.
We are always open to new opportunities. So build your software together with Go Wombat — contact us!
