Where is the money?

I'm not much into listicles, but I thought it might be useful to set out the different ways a mid-size manufacturing company could make money from implementing a as-a-service model. Here's some thoughts.

One. Subscription-based revenue. You charge customers a subscription fee for access to your product and its associated services.

Two. New product features and services. By connecting products to the IIoT, you open up revenue streams by being able to offer new lines such as remote monitoring and control.

Three. Predictive maintenance. When you collect data from connected products you can predict when maintenance is needed and make money from new service contracts.

Four. Data analytics. Collect the right data from your connected products and you get new insights into how to optimize production, improve efficiency and reduce costs, all things you can sell to customers that will add to your bottom line and your customers are now expecting this.

Five. Upgrades and add-ons. One new revenue leads to another.

Six. Training and education. There's revenue to be made from teaching customers how to use your products and services most efficiently.?It doesn't happen without your expert guidance.

Seven. Customization. If someone wants your product tailored to their needs, then they should pay a premium right??The have the data to support it, why not provide it?

Eight. Warranties and insurances. The more comprehensive and sophisticated these are, the greater the value they bring to you when sold.

Nine. Consumables and spare parts for your product. Some of these may be included in your service agreement, but probably not all. If you want an idea of how to make money from consumables using the IIoT, see my 'Lou's Trailer' blog.

And ten, cross-selling and upselling. Use the data collected from your core products to point your customers in the direction of other products and services that would be a good fit for them and you've got another revenue stream.

More to come, these are just some of the ways your new transformational approach to delivering new digital services to your customers allow for a more stickier relationship.