Guest Column | August 15, 2016

The Industrial Internet Of Things And The Performance-Based Or Outcome Economy

Dan Yarmoluk, IoT Business Development Executive for ATEK’s AssetScan

By Dan Yarmoluk, IoT Business Development Executive for ATEK’s AssetScan

When we think of the Internet of Things or connected products, we tend to think of our hyper-connected world of gadgets, whether it be smart phones, refrigerators, or toothbrushes that appear to have non-essential and cool product features for the technophile.  When looking at the world of sensors, internet-enabled products, and cloud computing, it's hard to truly comprehend the enormity of what's happening at a fundamental level, that being, the definition of business value and how it will affect all of us. 

For as long as we can remember, products have been bought and sold. The transfer of ownership comes with the sale and service ends with the warranty term; we can consider this the transactional model.  As business has evolved, we have added more advanced value-added concepts to this simplistic model.  This includes EDI-type of inventory systems to ensure that we manage demand for a customer base as efficiently as possible.  As with other services, consulting or other informational type of engagements, we use things like a "trusted and reliable partner". This suggests the relationship has moved beyond simple buy-and-sell to more of an understanding of the other's needs and proactively manage one's activities.