GEC NEWS WIREIdentifies Four Fundamental Usage Models to Unlock Value from the Internet of Things
During Gartner Symposium/ITxpo, being held here through April 3, analysts are exploring the four fundamental usage models, enabling business and IT leaders to clearly see how to take advantage of this next wave in Internet evolution.
“As the Internet of Things grows rapidly, it is linking millions of assets, including devices, people and places, to deliver and share information, enhancing business value and competitive advantage, and creating new business opportunities,” said Hung LeHong, vice president and Gartner Fellow. “In this early and emergent phase of development, entrepreneurs are experimenting across such a diverse range of sectors, applications, business models and technologies in their efforts to uncover value. This creates confusion and makes it difficult for others to easily identify the potential in their own geographies, industries and business sectors.”
Despite their diversity, Gartner believes that all current examples can be simply categorized into four basic usage scenarios, each of which presents clear business opportunities for end-user organizations.
Manage — Looking at the Status of the Asset to Improve Utilization This model is essentially involved in the optimization of asset utilization within an environment. As various assets (which could be a device or piece of equipment, or a location, such as a meeting room or a parking space) are connected and are able to provide up-to-date status information, then utilization can be optimized through appropriate systems to match assets with needs.
Monetize — Charging for Usage of the Asset on an Incremental Basis This is a specific business model that is about the monetization of a physical asset by accurately measuring usage. It enables a (potentially very expensive) capital asset to be used as the basis for a usage-based service. This brings business opportunities to replace capital expenditure with operating expenditure, more-accurate plotting of product life cycle and more-effective preventive maintenance.
Operate — Using the Asset to Control Its Surroundings This model builds on the well-established realm of “operational technology,” which is technology used to manage the equipment and processes inside manufacturing plants.
Extend — Providing Additional Digital Information or Services Through an Asset A physical supply chain ends when a product or asset is shipped. However, when that asset is connected, a digital supply chain continues to exist in which digital services and products can be delivered to that asset. In effect, the physical asset is extended with digital services.
