Information technology has dramatically changed the way we work and play in a mere two or three decades. That said, the IT revolution is really just beginning, and the next phase of connectivity is a
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Innovative business models: The Internet of Things will also lead to innovation, especially in terms of new business models that may shift competitive dynamics within industries. For example, using IoT data and connectivity has revolutionized the sales of industrial machinery and other goods into a service model. Among the pioneers of this new service model trend were jet-engine manufacturers that shifted their business model to selling thrust and related services rather than actual engines. Service-based models are are now found in a variety of industries. Of note, transportation as a service, Uber. Lyft and others, powered by apps and geolocation devices, is threatening vehicle sales and traditional distribution models. By the same token, manufacturers of laser printers and copiers with IoT capabilities are also becoming service businesses. These new service-based business models depend on the Internet of Things. The IoT provides the ability to track how physical assets are actually used, and makes it possible for businesses to accurately price and charge for use. Furthermore, the data from all these connected assets permit a provider/manufacturer to operate equipment more efficiently than its customers, since customers only have a limited “in-house” view of their own equipment. In addition, analysis of IoT data allows for condition-based predictive maintenance, which can dramatically reduce unplanned downtime.