Business models

We also implemented a classification of the business opportunities of the platform using business models. They can be divided into two groups — these are business supporting and business forming models. The first group includes models in which an additional economic effect is created as a result of using the technologies of the Internet of Things. The second group includes models in which the achievement of the main economic effect happens due to the use of the Internet of Things technologies. In such business models, the failure of systems providing the technological component of the Internet of Things does not stop the business.

Consider business models in more detail. Their evolution began with a model of objective control, which is a business supporting. The model consists in reducing the influence of the human factor on business processes. The main economic effect consists in reducing costs, including theft, violation of business processes or technology, etc. An example of this model is the system of «transport telematics» or telemetry that allows you to monitor the current state of objects of control, as well as evaluate the change in a number of key parameters using history analysis.

The next business supporting model that appeared during the evolution of the system is object traceability. In complex multistep processes it includes the automation of the interaction of systems involved in all stages of the process. For example, the supply of agricultural products «from the farmer to the counter», including pre-sale preparation, or product control at all stages of the life cycle. The main economic effect is cost reduction, improving the quality of products and services.

The latest business supporting model is predictive service. This way of organizing the processes of system maintenance based on information collected using the sensor network. This information is used to analyze and predict the emergence of faults. As a result of the implementation, operating costs are reduced by optimizing the equipment maintenance plan. The system reliability is increased. Right now, implementation in the railway industry, the control of elevator equipment, power plants are distributed.

Consider the number of business forming models in the order of their appearance in the process of evolution. First of all, it is the after-use of assets which means improving the efficiency of using of an asset without scaling an asset. For rental cars, the rate of recycling is about four hours per day at an average annual. The transformation of a business model into carsharing makes it possible to achieve an indicator of 7-8 hours per day at an average annual. The rate or limit of efficiency can be limited to almost any business parameter — for example, the area of an object. An example of this business model is the Port of Hamburg, where digital flow control allows you to increase the capacity of the port without increasing its area.

The next business forming model is transformation into service models. This is the transition of the main business model from the sale of a mechanism or unit to the sale of a subscription to the beneficial effect of the operation of this mechanism or unit. An example is the sale of the power-plant hours, instead of themselves.

And the final business forming model is the automation of non-deterministic processes. This is the automation of business processes, the performance of which is influenced by factors that are beyond to a clear mathematical definition. An example of such business processes are processes taking place in crop production. Climatic conditions, pests, contamination and many other factors can affect to these processes. The implementation of automation can increase efficiency and reduce costs by automatically maintaining key factors within specified limits.