UNIT V - IOT APPLICATIONS OCS352 IOT CONCEPTS AND APPLICATIONS
UNIT V
IOT APPLICATIONS
Business models for the internet of things, Smart city, Smart mobility and transport, Industrial IoT,
Smart health, Environment monitoring and surveillance – Home Automation – Smart Agriculture
5.1 Business Models for the Internet of Things
5.2 Exemplary Business Model Scenarios for the Internet of Things
5.2.1 Scenario 1: Product as a Service (PaaS)
5.2.2 Scenario 2: Information Service Providers
5.2.3 Scenario 3: End-user Involvement
5.2.4 Scenario 4: Right-time Business Analysis and Decision making
5.3 Smart city
5.3.1 Smart parking
5.3.2 Smart Lighting
5.3.3 Smart Roads
5.4 Smart mobility and transport
5.5 Industrial IoT
5.5.1 Introduction to Industrial internet of things
5.5.2 Working IIoT
5.5.3 Industries using IIoT
5.5.4 Benefits of IIoT
5.5.5 Security in IIoT
5.5.6 Risks and challenges of IIoT
5.5.7 IIoT applications and examples
5.6 Smart health
5.6.1 Health and Fitness Monitoring
5.7 Environment monitoring and surveillance
5.7.1 Key components and considerations
5.6.2 Applications
5.8 Home Automation
5.8.1 Smart Lighting
5.8.2 Smart Appliances
5.8.3 Intrusion Detection
5.8.4 Smoke for Gas Detection
5.9 Smart Agriculture
5.9.1 Smart Irrigation
5.9.2 Green House Control
5.1 Business Models for the Internet of Things
Explain the Business Models for the Internet of Things.
➢ For a long time research on firms focused on industry (Porter 1980) and resources (Barney et al. 2001,
Wernerfelt 1984).
➢ The business model has to be seen as the replacement or complement of the traditional unit of
analysis, as a result of the altered surrounding conditions.
1
Compiled by: Parthiban. S., M.Tech., Asst. Prof., VRSCET.
,UNIT V - IOT APPLICATIONS OCS352 IOT CONCEPTS AND APPLICATIONS
➢ Business model can be defined as an abstraction of the complexity of a company by reducing it to its
core elements and their interrelations.
➢ It facilitates the analysis and the description of business activities.
➢ In relation to the Internet of Things the business model could be seen as a major element to unite its
technical developments with its economical business perspective.
➢ According to Afuah and Tucci (2000), “a business model can be conceptualised as a system that is
made up of components, linkages between the components, and dynamics”.
➢ Components refer to the elements to be addressed by a business model.
➢ The framework by Osterwalder and Pigneur (2009), which is referred to as the “business model
canvas” is shown in figure.
Figure 5.1 Business Model Framework.
➢ The business model framework depicted in Figure 10.1 includes four main perspectives of the
business model, namely the value proposition, the customer, financials and the infrastructure.
➢ The components are not stand-alone but mutually influence each other.
Value proposition
➢ The value proposition specifies what is actually delivered to the customer.
➢ This goes beyond the product or service offered.
➢ It describes which customer needs are satisfied and details the other quantitative (e.g., price or speed
of service) and qualitative aspects (e.g., brand, design, cost/risk reduction) contribute to the offered
value.
➢ In the Internet of Things, the raw data about physical objects as well as any aggregated or processed
information are the core components of the value proposition.
Customer perspective
➢ The customer perspective includes the customer segments addressed by the company, such as related
channels and customer relationships.
➢ The customer segments define the different groups of people that are served.
2
Compiled by: Parthiban. S., M.Tech., Asst. Prof., VRSCET.
,UNIT V - IOT APPLICATIONS OCS352 IOT CONCEPTS AND APPLICATIONS
➢ Different types of customer segments can be distinguished: mass market vs. niche market, segmented
vs. diversified or multisided platforms.
➢ The company can reach its customers, respectively customer segments through different channels.
➢ These can be direct or indirect and owned by the company itself or by partners.
➢ Customer relationships are often determined by the channels used.
➢ Relationships can range from very loose (self-service, automated services) to highly engaged
(personal assistance, communities, co-creation).
Financial Perspective
➢ The financial perspective comprises the costs as well as the revenues.
➢ The revenue structure depicts the sources and ways of revenue generation.
➢ Here, too, different types of revenue streams can be distinguished: asset sale, usage fee, subscription
fee, lending / renting / leasing, licensing, brokerage fee, and advertising.
➢ The cost structure describes the most important costs (variable and fixed) essential to the business
model.
➢ The business model can be rather value or cost driven (cost leadership vs. differentiation strategy).
➢ Companies can use economies of scale or economies of scope to create a successful business model.
Infrastructure Components
➢ Key partners, key activities and key resources can be referred to as the infrastructure components.
➢ The key resources are the assets required to make the business model work.
➢ Key resources can be physical, intellectual, human or financial.
➢ The key activities describe the most important actions to be performed by the company to create, offer
and market the value proposition.
➢ These can be producing, problem solving or developing and maintaining a platform, respectively
network.
➢ Key partners are the network of suppliers and collaboration partners (strategic alliances, outsourcing
partners, co-creation) the business model depends on.
**********
5.2 Exemplary Business Model Scenarios for the Internet of Things
Explain the Business Models for the Internet of Things with example scenario.
➢ Business Model Scenarios: Different business model scenarios are developed based on previous
considerations and findings.
➢ Wide Application of IoT: The field of IoT technology extends beyond previous examples.
➢ Ongoing Applications: IoT is still relevant for controlling processes and ensuring the quality of
goods in manufacturing, logistics, service, and maintenance.
➢ Exemplary Scenarios: The scenarios will explore how IoT technology supports Platform as a
Service (PaaS), the role of information service providers, integration of end-users, and opportunities
through real-time business analysis and decision-making.
3
Compiled by: Parthiban. S., M.Tech., Asst. Prof., VRSCET.
, UNIT V - IOT APPLICATIONS OCS352 IOT CONCEPTS AND APPLICATIONS
➢ Business Model Framework: The framework will demonstrate how configuring business models
can help companies monetize IoT technologies.
5.2.1 Scenario 1: Product as a Service (PaaS)
➢ Trend in Business Model Innovation: Moving from selling products to offering services is a
significant trend.
➢ Hilti’s Fleet Management: Hilti, a global provider of construction tools, introduced “Fleet
Management.”
➢ Tool Access: Customers don’t need to own tools anymore.
➢ Service Model: Hilti provides tools on a contract basis with a monthly fee, including services like
repairs.
➢ Customer Benefits: Lower initial costs, no repair expenses, flexible inventory, reduced downtime,
and access to up-to-date tools.
➢ Performance-Based Pricing: Pricing can be based on service performance.
➢ Examples: "Power by the Hour" (PbH) and "Performance-Based Logistics" (PBL) are common
models.
➢ Need for Measurement: Accurate performance metrics are essential for reliable pricing calculations.
Problem Statement
➢ Challenges in PaaS Adoption: Delay is often due to lack of performance measurement and billing
tools, as well as unsuitable pricing models.
➢ Current State: Many implementations are isolated rather than integrated.
The Internet of Things as Enabler
➢ The Internet of Things offers a range of possibilities to support such PaaS scenarios.
➢ Sensors allow for the tracking of a product and the location of its current position.
➢ In addition, the usage times of a product can be exactly documented as well as the condition under
which a product was used (e.g. the speed at which a car has been driven).
➢ Sensors also enable a company to monitor the condition of the product or parts and tools and thus
support maintenance and repairs.
➢ Through an open Internet of Things infrastructure, different offerings can be combined.
Possible Scenario
➢ Current Scenario:
o Time-based fees depending on car class and gasoline.
➢ Future Scenario with IoT:
• Pricing based on exact car usage.
• Calculation factors include:
o Actual emissions o Transport weight
o Engine speed o Streets used
o Acceleration o Other measurable values
➢ Benefits:
• Encourages environmentally friendly driving.
4
Compiled by: Parthiban. S., M.Tech., Asst. Prof., VRSCET.
UNIT V
IOT APPLICATIONS
Business models for the internet of things, Smart city, Smart mobility and transport, Industrial IoT,
Smart health, Environment monitoring and surveillance – Home Automation – Smart Agriculture
5.1 Business Models for the Internet of Things
5.2 Exemplary Business Model Scenarios for the Internet of Things
5.2.1 Scenario 1: Product as a Service (PaaS)
5.2.2 Scenario 2: Information Service Providers
5.2.3 Scenario 3: End-user Involvement
5.2.4 Scenario 4: Right-time Business Analysis and Decision making
5.3 Smart city
5.3.1 Smart parking
5.3.2 Smart Lighting
5.3.3 Smart Roads
5.4 Smart mobility and transport
5.5 Industrial IoT
5.5.1 Introduction to Industrial internet of things
5.5.2 Working IIoT
5.5.3 Industries using IIoT
5.5.4 Benefits of IIoT
5.5.5 Security in IIoT
5.5.6 Risks and challenges of IIoT
5.5.7 IIoT applications and examples
5.6 Smart health
5.6.1 Health and Fitness Monitoring
5.7 Environment monitoring and surveillance
5.7.1 Key components and considerations
5.6.2 Applications
5.8 Home Automation
5.8.1 Smart Lighting
5.8.2 Smart Appliances
5.8.3 Intrusion Detection
5.8.4 Smoke for Gas Detection
5.9 Smart Agriculture
5.9.1 Smart Irrigation
5.9.2 Green House Control
5.1 Business Models for the Internet of Things
Explain the Business Models for the Internet of Things.
➢ For a long time research on firms focused on industry (Porter 1980) and resources (Barney et al. 2001,
Wernerfelt 1984).
➢ The business model has to be seen as the replacement or complement of the traditional unit of
analysis, as a result of the altered surrounding conditions.
1
Compiled by: Parthiban. S., M.Tech., Asst. Prof., VRSCET.
,UNIT V - IOT APPLICATIONS OCS352 IOT CONCEPTS AND APPLICATIONS
➢ Business model can be defined as an abstraction of the complexity of a company by reducing it to its
core elements and their interrelations.
➢ It facilitates the analysis and the description of business activities.
➢ In relation to the Internet of Things the business model could be seen as a major element to unite its
technical developments with its economical business perspective.
➢ According to Afuah and Tucci (2000), “a business model can be conceptualised as a system that is
made up of components, linkages between the components, and dynamics”.
➢ Components refer to the elements to be addressed by a business model.
➢ The framework by Osterwalder and Pigneur (2009), which is referred to as the “business model
canvas” is shown in figure.
Figure 5.1 Business Model Framework.
➢ The business model framework depicted in Figure 10.1 includes four main perspectives of the
business model, namely the value proposition, the customer, financials and the infrastructure.
➢ The components are not stand-alone but mutually influence each other.
Value proposition
➢ The value proposition specifies what is actually delivered to the customer.
➢ This goes beyond the product or service offered.
➢ It describes which customer needs are satisfied and details the other quantitative (e.g., price or speed
of service) and qualitative aspects (e.g., brand, design, cost/risk reduction) contribute to the offered
value.
➢ In the Internet of Things, the raw data about physical objects as well as any aggregated or processed
information are the core components of the value proposition.
Customer perspective
➢ The customer perspective includes the customer segments addressed by the company, such as related
channels and customer relationships.
➢ The customer segments define the different groups of people that are served.
2
Compiled by: Parthiban. S., M.Tech., Asst. Prof., VRSCET.
,UNIT V - IOT APPLICATIONS OCS352 IOT CONCEPTS AND APPLICATIONS
➢ Different types of customer segments can be distinguished: mass market vs. niche market, segmented
vs. diversified or multisided platforms.
➢ The company can reach its customers, respectively customer segments through different channels.
➢ These can be direct or indirect and owned by the company itself or by partners.
➢ Customer relationships are often determined by the channels used.
➢ Relationships can range from very loose (self-service, automated services) to highly engaged
(personal assistance, communities, co-creation).
Financial Perspective
➢ The financial perspective comprises the costs as well as the revenues.
➢ The revenue structure depicts the sources and ways of revenue generation.
➢ Here, too, different types of revenue streams can be distinguished: asset sale, usage fee, subscription
fee, lending / renting / leasing, licensing, brokerage fee, and advertising.
➢ The cost structure describes the most important costs (variable and fixed) essential to the business
model.
➢ The business model can be rather value or cost driven (cost leadership vs. differentiation strategy).
➢ Companies can use economies of scale or economies of scope to create a successful business model.
Infrastructure Components
➢ Key partners, key activities and key resources can be referred to as the infrastructure components.
➢ The key resources are the assets required to make the business model work.
➢ Key resources can be physical, intellectual, human or financial.
➢ The key activities describe the most important actions to be performed by the company to create, offer
and market the value proposition.
➢ These can be producing, problem solving or developing and maintaining a platform, respectively
network.
➢ Key partners are the network of suppliers and collaboration partners (strategic alliances, outsourcing
partners, co-creation) the business model depends on.
**********
5.2 Exemplary Business Model Scenarios for the Internet of Things
Explain the Business Models for the Internet of Things with example scenario.
➢ Business Model Scenarios: Different business model scenarios are developed based on previous
considerations and findings.
➢ Wide Application of IoT: The field of IoT technology extends beyond previous examples.
➢ Ongoing Applications: IoT is still relevant for controlling processes and ensuring the quality of
goods in manufacturing, logistics, service, and maintenance.
➢ Exemplary Scenarios: The scenarios will explore how IoT technology supports Platform as a
Service (PaaS), the role of information service providers, integration of end-users, and opportunities
through real-time business analysis and decision-making.
3
Compiled by: Parthiban. S., M.Tech., Asst. Prof., VRSCET.
, UNIT V - IOT APPLICATIONS OCS352 IOT CONCEPTS AND APPLICATIONS
➢ Business Model Framework: The framework will demonstrate how configuring business models
can help companies monetize IoT technologies.
5.2.1 Scenario 1: Product as a Service (PaaS)
➢ Trend in Business Model Innovation: Moving from selling products to offering services is a
significant trend.
➢ Hilti’s Fleet Management: Hilti, a global provider of construction tools, introduced “Fleet
Management.”
➢ Tool Access: Customers don’t need to own tools anymore.
➢ Service Model: Hilti provides tools on a contract basis with a monthly fee, including services like
repairs.
➢ Customer Benefits: Lower initial costs, no repair expenses, flexible inventory, reduced downtime,
and access to up-to-date tools.
➢ Performance-Based Pricing: Pricing can be based on service performance.
➢ Examples: "Power by the Hour" (PbH) and "Performance-Based Logistics" (PBL) are common
models.
➢ Need for Measurement: Accurate performance metrics are essential for reliable pricing calculations.
Problem Statement
➢ Challenges in PaaS Adoption: Delay is often due to lack of performance measurement and billing
tools, as well as unsuitable pricing models.
➢ Current State: Many implementations are isolated rather than integrated.
The Internet of Things as Enabler
➢ The Internet of Things offers a range of possibilities to support such PaaS scenarios.
➢ Sensors allow for the tracking of a product and the location of its current position.
➢ In addition, the usage times of a product can be exactly documented as well as the condition under
which a product was used (e.g. the speed at which a car has been driven).
➢ Sensors also enable a company to monitor the condition of the product or parts and tools and thus
support maintenance and repairs.
➢ Through an open Internet of Things infrastructure, different offerings can be combined.
Possible Scenario
➢ Current Scenario:
o Time-based fees depending on car class and gasoline.
➢ Future Scenario with IoT:
• Pricing based on exact car usage.
• Calculation factors include:
o Actual emissions o Transport weight
o Engine speed o Streets used
o Acceleration o Other measurable values
➢ Benefits:
• Encourages environmentally friendly driving.
4
Compiled by: Parthiban. S., M.Tech., Asst. Prof., VRSCET.
