New business models with IoT: 10 practical examples

Whoever connects their products via IoT – whether already during manufacturing (embedded) or afterwards through retrofit – makes them smart. Data collected by sensors and transmitted to the cloud via a mobile module can be analyzed to optimize product functions, provide software updates, or enhance customer service. Deutsche Bahn, for example, has connected its rental bikes via mobile connectivity. Customers using the DB Call a Bike service now benefit from a faster, simpler rental process – a clear boost to the user experience. And Kässbohrer can offer buyers of its snow groomers new services enabled by mobile connectivity, such as fleet management, remote monitoring, remote maintenance, as well as national and international roaming.

IoT sensors monitor the condition of equipment to prevent breakdowns and plan maintenance work more efficiently. By optimising processes and reducing downtime, companies can not only increase their efficiency and reduce costs, but also develop new business models such as predictive maintenance. Take Ziehl-Abegg, for example: the family-owned company from Baden-Württemberg has equipped its industrial air conditioning and ventilation systems with sensors that monitor all operating data. Customers of Ziehl-Abegg benefit from more demand-oriented maintenance of their fans and are automatically notified in good time in the event of malfunctions.

By analysing their customers' purchasing behaviour, companies can provide tailored product recommendations. This can also increase customer satisfaction and loyalty. In retail, the integration of IoT solutions enables an improved customer experience through personalised offers, automated checkouts and smart shelves. Electronic price tags, for example, are directly connected to the merchandise management system, allowing price changes to be controlled and implemented centrally. Customers could scan the tags in the shop with their smartphones and pay for items directly or order them in a different size. In addition, both customers and employees can use an app to locate goods in the shop and find them more quickly.

Sensors and intelligent control systems help reduce energy consumption in buildings and production facilities — delivering not only cost savings but also enabling entirely new business models. These include energy consulting and optimization services, energy audits, and personalized recommendations for energy efficiency.

IoT sensors in power grids provide real-time data on electricity generation and distribution. This allows utility providers to optimize capacity, forecast demand more accurately, and prevent bottlenecks. At the same time, they can give consumers greater control over their energy usage by enabling them to monitor and optimize their consumption in real time.

GPS trackers and sensors monitor the location and condition of goods in real time and can automate processes and optimise the supply chain. Arrival times can be predicted accurately and transport disruptions detected at an early stage. Two waste management companies are now making use of sensor technology and mobile communications to improve their collection services: Rhenus and REMONDIS have equipped their data bins and glass containers with fill level sensors that send a signal as soon as a container is full. This optimises collection routes, avoids empty runs and increases customer satisfaction.

Based on IoT technologies such as Precise Positioning reduce the consumption of resources such as fertilisers, water, seeds and pesticides and can lead to higher yields. IoT systems support farmers in monitoring soil quality, weather conditions and plant growth. New business models such as Precision Farming are emerging, which in turn open up access to new customers for manufacturers of agricultural machinery.

Smart city solutions improve traffic conditions, safety and environmental quality in cities, which also creates new business opportunities in public infrastructure and the service sector. Companies can offer new IoT-based solutions for traffic management and parking space search, which relieve congestion in cities and improve the quality of life for residents. This opens up new market opportunities: cities and municipalities become customers.

Wearables and connected medical devices can help healthcare providers improve the quality of patient care and develop new business models in the field of digital health. This creates new market opportunities, for example through telemedicine services and connected medical products. A strong example is the connectivity of BIOTRONIK’s pacemakers via Deutsche Telekom’s global mobile network. It enables the automatic daily transmission and analysis of health data to the treating physician – even when the patient is in another country. Through continuous heartbeat monitoring using home-monitoring technology, the mortality rate among affected patients has been reduced by 60%.

IoT solutions that increase energy efficiency, safety and comfort improve building management. New business models such as smart building technology services or data-based optimisation of room utilisation can emerge. ISS, a leading international provider of facility services, has digitised its building management with sensor technology and IoT. ISS can now provide its customers with data on the condition and utilisation of rooms, for example – an additional service that increases customer loyalty.

IoT sensors enable real-time monitoring and management of inventory levels. This leads to more efficient warehousing, faster delivery times and an improved customer experience. At the same time, new services such as automated reordering can be developed to increase customer loyalty and sales. The Bavarian construction specialists at PERI have networked their formwork elements via Telekom's Low Cost Tracker. This makes it much easier to find the elements on the construction site. Now the manufacturer can also offer its customers a localisation service.