One of the most lucrative business models commonly is known as the razor and razor blades. In a nutshell, you can sell one-off razors but why not have repeat customers with the blades? You can see this applied today in everything from printers (ever wonder why printers are inexpensive or even free?) to vehicles (a dealer does not necessarily need to sell a lot of cars to remain profitable). Which brings us to IoT and your operations.
IoT still is in the nascent stages, similar to the PC in 1982 or the web in 1996, and that means a golden opportunity for you. The vast majority of companies, even high-tech ones, want turnkey IoT/M2M solutions without the worry of maintenance and repair (M&R)—and are willing to pay for it. The technology is simply too complex and integral to their operations to risk any potential downtime, especially with mission-critical applications like medical devices. This is why IoT M&R may dwarf IoT solutions sales in the coming years.
Good news. And even better news.
While M&R can boost your bottom line, it also offers your customers tremendous ROI on their IoT investment as well. Here are just some examples, using remote monitoring as the application:
- You can upgrade and control your customers’ products on the fly, reducing time to market, and mitigating any potential problems when they happen. This creates a significant savings in human touch costs, and product parameters can be adjusted over time to optimize performance.
- When combined with predictive analysis, remote monitoring can help your customers significantly reduce unplanned outages and increase uptime.
- Your customers can vastly improve their customer service experience. Remote monitoring lets your clients proactively deliver the ideal end user experience. If a problem occurs that cannot be remedied immediately, the IoT-enabled devices will generate comprehensive reports detailing time, reason for failure, components affected, device/environmental conditions, and numerous other factors.
These reports also enable service engineers to fix the issue faster and implement safeguards to prevent future problems. This further reduces the cost of delivering service, impacting the bottom line is a very positive way.
Delivering these benefits in an affordable solution translates to a fiercely loyal client base with dramatically reduced churn. And since IoT M&R is so new, you easily can become the incumbent vendor and grow with your customer.
Best of all, M&R solutions are great at policing themselves, with little or no human intervention. You essentially “set it and forget it” to quote a famous infomercial. That makes your barrier to entry into this highly lucrative marketplace about as low as possible.
Want more information on the possibilities of IoT? Visit Aeris /Neo to find out more.