The 6 ways to make money in IoT
IoT (Internet of Things) is a network of connected physical things which collect, send and act on data from various surrounding sources. The term has been around for more than a decade but recent years have shown a magnificent jump in its usage. Its implementation has penetrated not only in industries but also in our homes. Paving path for a new market, this technology has taken the world by a storm. With strong focus on innovation and technological advancement, it’s user base who benefits directly/indirectly has increased manifolds. Smart bulbs, Door locks, Home apps, Bluetooth trackers, etc. are most common examples of everyday things which are based on the same. But the surge can’t be completely captivated just by stating a few examples that are commonly visible to us. The scope is beyond what we usually expect. With increasing demand, various new players have come into picture and even the existing players have also re-strategized the way processes are executed to enhance the quality of work. Let’s try to understand various ways in which IOT opens a new range of possibilities to encash the ever-growing demand.
Standalone Hardware devices:
Hardware devices such as sensors, speakers, switches, etc. are the base on which Internet of Things is conceptualized. These devices have been around for more than a century but the by connecting them with Internet, the transformation of hardware devices has started. Any hardware device which collect data from surroundings and act accordingly can become a major player in IoT network. With introduction of IoT, the manufacturing of these products has shown a huge positive incline. Earlier sensors were mainly meant for a scientific experiment but now each sensor has been playing a vital role in collecting data. They can be motion detectors or temperature detectors or anything else but if they are connected to Internet, they can serve a much bigger purpose. Like sensors, various other hardware devices have shown a positive trend to make money and has thus seen a lot of investment in the same sector.
A service is something which provides data from one source to another. With IoT, any device data can’t be considered invaluable and thus can be exchanged with any other third party. In this way the business for those who deals in exchanging data through service has shown a promising future. The scores of any match that is telecasted has enormous Internet consumers. Similarly, data from a hardware device can be exchanged in return of business to any other relevant companies. The contract can vary based upon the data to be shared but each new hardware device promises a new service that can be deployed in live production environment to collect and share data.
Now that Hardware segment has generated a lot of data that can be exchanged through Service sector, the same needs to be stored securely on a short-term or a long-term basis. This has given a rise to players who deal in storing data. Various cloud providers like Amazon’s AWS IoT platform provide space to store this data for immediate or later use. Similarly, there are Private Fiber Networks like that of Google which makes it possible to skip going through public network through majority of their time in transit. Cloud companies as well as Private servers thus offers a great scope of business with IoT. Another important thing to remember is that with growing demand, this business can never show a declining trend if security and maintenance are taken well into consideration.
Now that data from various sources has been stored at various servers, the same can be utilized to be collected and presented in a useful manner directly to an end user. Let’s say you have installed a smart CCTV camera in your office which captures every moment that happens after you leave office and blow a siren whenever anything suspicious happens. Now let’s consider a situation where all video recordings are available to you directly at your fingertips. This is achievable through a mobile app which shows you a live footage and even let you change angles of camera directly from your mobile screen. Now the demand for a dashboard in the form of an app or website can be easily understood. The thriving software industry will leverage a lot more than what we expect today. With enhanced technologies, the quality of applications has already been on a roller coaster ride thus opening a wide market to make money.
The data gathered at server/cloud is now passed to any third-party vendor which shows the data to end user in a readable format. Now if you have permission to access data from the consumer, a new line of business can be started with that data. This is the most recent business which has been giving returns to the client in a very short term. If hardware devices are smart, then so needs to be the one who is acting upon the data collected by them. Let’s say a few sensors are attached to an industrial machinery which is quite large and expensive. These sensors will inform the user about the condition of machine and any damage that is being caused to it by any recent activity. Let’s assume a data analytics software is attached to the data collected by al sensors which can analyze data and predict when machine is going to be broken if the condition is not corrected. This is not a future technology. This is the very reality based on which this segment is thriving. Artificial intelligence is used for Predictive Maintenance of various industrial machineries which require a lot of money for repair if once broken.
Connected Hardware devices:
With data analytics being done to the data collected by different devices operating in similar of different surroundings, another scope of encashing has arrived into the scene. Let’s assume you have sensors on Microwave which detects any activity and a CCTV camera that is being placed in a kitchen to monitor any unwanted scenario. With combined data of Microwave and CCTV, a new feature of IoT can be introduced which guides you to make any dish whenever that Microwave is operated. This is again the very reality of today and the most popular segment of IoT where you integrate different solutions provided by different Internet of Things and provide an altogether new solution, thus retaining old features as well as providing new features which were otherwise impossible. This is the segment where most innovation is happening in today’s world and it brings with itself business which were previously unthinkable by even the greatest entrepreneurs. The integration of different systems itself comes with new challenges like having a standard protocol for different devices but this is already being formulated for various segments. Like we have a standard protocol for any device related to cars. Thus, in a way we are moving towards an ideal automatic car by taking smaller steps in this segment. Though it requires a major investment for Research and development purpose but the profits are huge which attracts a lot of investors to get into this sector.
To conclude, we can say that Internet of Things has been carving a new way towards transforming business and making maximum number of people to benefit from it directly or indirectly. If security standards are raised, then an ample of possibilities are in the queue for all 6 sectors discussed above. The only logical thing will be to innovate continuously to move ahead in this challenging industry.