{"id":301,"date":"2015-09-10T17:22:38","date_gmt":"2015-09-10T17:22:38","guid":{"rendered":"https:\/\/davra.com\/?p=301"},"modified":"2018-11-22T18:15:12","modified_gmt":"2018-11-22T18:15:12","slug":"usage-scenarios-driving-the-internet-of-things-part-3","status":"publish","type":"post","link":"https:\/\/davra.com\/usage-scenarios-driving-the-internet-of-things-part-3\/","title":{"rendered":"Usage Scenario\u2019s driving the Internet of Things \u2013 Part 3"},"content":{"rendered":"

An introduction to\u00a0IOT Phase 2 \u2013 Charge\u00a0\u00a0\u00a0 (Pay per Use)<\/em><\/strong><\/p>\n

So hopefully at this stage, the mid-point mark in our 5 part blog series, you\u2019re all relatively comfortable with what exactly the \u2018Internet of Things\u2019 is and how it\u2019s going to revolutionize your life over the next few years whether you like it or not.\u00a0 What probably hasn\u2019t been made clear so far though is just who is going to pay for all this new technology (50 billion connections don\u2019t come cheap you know) and why exactly they would want to do it.<\/p>\n

Well unsurprisingly the answer to this comes in two parts.<\/p>\n

He who pays the Piper, calls the tune \u2026\u2026\u2026.<\/em><\/h2>\n

In the world of M2M the key business driver was cost saving so the companies & organizations who deployed M2M solutions generally had no expectation to make money from them. \u00a0Instead they gained value by having to employ less staff, reduce downtime, increase productivity etc, etc. \u00a0As we evolved to IOT (Phase 1 – MANAGE) we started to add real intelligence to our offerings so organizations could expect increased customer loyalty, higher service levels, even increased revenues, so again there were benefits there to justify the expenditure and organizations were willing to absorb the costs.\u00a0 As we move forward to the next phase of IOT however we are starting to see something unusual develop, rather than technology being used to bolster existing infrastructure and use cases we are actually seeing the development of business models specifically based on these new technologies. So for the first time we\u2019re seeing standalone economic value that could not exist without the Internet of Things.<\/p>\n

Making Money from IOT<\/em><\/h2>\n

Probably the most obvious example of this is and one of the first use cases to arise from this phase of IOT was \u2018pay per use\u2019 motor insurance which as its name suggests means drivers are insured not only when they actually use their vehicle but also based on how and where they use it.\u00a0 Having a \u2018thing\u2019 onboard your car that records your mileage, speed, location and risk pattern (ie. do you take corners to fast, brake too often, take off from lights at speed etc.) means insurers can determine the real risk in an individuals policy rather than comparing them to broad groups based around age, gender and engine type. This offers the insurer the ability to tailor policies and the driver a real opportunity to reduce their premiums so it\u2019s a win\/win all round.<\/p>\n

Beyond this however, IOT Phase 2 can just as easily be adapted to any \u2018Pay per Use\u2019 model from street cars in large cities (ZipCar, GoCar, Car2Go, etc) to the Aviation industry where engine manufacturers have taken the amazing step of retaining ownership of their engines and charging airlines based on the amount of thrust used. This last model is particularly interesting due to the real time nature of the data transfer and the high value of the product now being delivered as a service. Without IOT the manpower and time required to collect information from every plane engine in the world would mean that it could be weeks after a plane landed before the manufacturer could bill for its use which would have meant this new billing innovation could never have happened. With IOT the usage of a multi-million dollar piece of equipment can be collected and transferred instantly using a $1 piece of hardware. Not that it actually is though, no these guys like to spend money so they make sure it\u2019s a highly robust, secure, reliable and expensive piece of hardware, it\u2019s just doing the job of a $1 one.<\/p>\n

So where to from here ?<\/em><\/h2>\n

Now that the initial use cases have started to hit the streets new concepts are starting to pop up everywhere with companies becoming increasingly creative in their use of technology. \u00a0At a recent automotive event I attended a number of manufacturers suggested that they were moving away from the individual car being the center of their focus and moving towards the individual driver.\u00a0 So in a couple of years time you could be a BMW \u2018user\u2019 with access to any of their cars each of which will recognize you and change their settings accordingly including seat position, radio stations, GPS co-ordinates, favorite routes, in-car purchases, media subscriptions (Netflix, Apple, etc) and a whole host of other criteria based on your personal data.\u00a0 Imagine walking onto a street and just picking the closest car to you to drive home in, it\u2019s not that far away you know, they just have to figure out where to stick the badge \ud83d\ude09<\/p>\n

So if the car manufacturers, a notoriously IT un-friendly industry, can make it work then the reality is anyone can.\u00a0 We\u2019re already seeing Pay per Use Medical equipment with connected Chemotherapy systems that automatically configure themselves to the patients records, meaning patients can be treated closer to home or even at home.\u00a0 Pay per Use is even starting to creep into the traditionally slow moving world of Manufacturing with remotely reconfigurable production lines offering the possibility of \u2018cloud based\u2019 outsourcing were clients can remotely control production facilities for small batch manufacturing proving once again that once the technology is available the market will provide.<\/p>\n

On to week 4<\/em><\/h2>\n

So now that we know who\u2019s paying lets move on to the next stage of our series,\u00a0Phase 3 \u2013 Remote Operation<\/strong>.\u00a0 This is were we get into the weird and wacky world of Amazon drones, self driving cars and robot mining, it\u2019s where IOT meets Isaac Asimov, Arthur C Clarke & Philip K Dick and things start to get really interesting.<\/p>\n

So tune in next week sci-fi fans, same time, same channel, blah, blah, blah \u2026\u2026..<\/p>\n","protected":false},"excerpt":{"rendered":"

An introduction to\u00a0IOT Phase 2 \u2013 Charge\u00a0\u00a0\u00a0 (Pay per Use) So hopefully at this stage, the mid-point mark in our 5 part blog series, you\u2019re all relatively comfortable with what exactly the \u2018Internet of Things\u2019 is and how it\u2019s going to revolutionize your life over the next few years whether you like it or not.\u00a0 […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"yst_prominent_words":[707,706,713,698,53,658,696,700,705,689,710,708,704,684,715,703,692,126,173,598],"_links":{"self":[{"href":"https:\/\/davra.com\/wp-json\/wp\/v2\/posts\/301"}],"collection":[{"href":"https:\/\/davra.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/davra.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/davra.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/davra.com\/wp-json\/wp\/v2\/comments?post=301"}],"version-history":[{"count":0,"href":"https:\/\/davra.com\/wp-json\/wp\/v2\/posts\/301\/revisions"}],"wp:attachment":[{"href":"https:\/\/davra.com\/wp-json\/wp\/v2\/media?parent=301"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/davra.com\/wp-json\/wp\/v2\/categories?post=301"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/davra.com\/wp-json\/wp\/v2\/tags?post=301"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/davra.com\/wp-json\/wp\/v2\/yst_prominent_words?post=301"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}