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3 companies successfully monetizing IoT data

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While many companies use IoT to increase efficiencies and save money, some are revamping their business model and monetizing IoT data via subscription services and digital products.

Monetizing IoT data

Monetizing IoT data

Monetizing IoT data- Companies today increasingly use the confluence of hardware, software, networking and analytics that is IoT to cull insights from the data collected from varied and numerous connected points. To date, most companies have used IoT to increase efficiencies and save money. Now, however, some companies are using IoT to develop subscription services and digital products that are in turn driving new revenue streams for them.

That business model, however, isn’t an easy one to develop, making those companies already engaged in such pursuits on the leading edge of this aspect of the digital revolution.

“The ability to drive top-line growth remains an aspirational goal for many organizations, but has remained challenging,” said Chris Rommel, executive vice president at VDC Research. “With all the talk about new service models and revenue streams, cost-savings use cases are what have had the most impact on the market to date. It is simply much easier for organizations to cost justify an IoT solution investment when they can back it up with a tangible cost model, as opposed to a hypothetical about the creation and expansion into a new market.”

Yet, there are those companies out there that have had success upending their business models to monetize IoT data — including some from very traditional industries.

Otis’ IoT evolution

Otis Elevator Company’s elevators and escalators move 2 billion people on any given day. As a result, the company has collected a trove of data on how people get around. Company executives believe that their data creates insights that have immense value — and now Otis is putting those insights up for sale.

The company, which has sold elevators since its founding in 1853 and started selling maintenance about 10 years later, is ready to add the role of data provider to its résumé.

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Article Credit: TechTarget

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