To create real value through IoT, it’s not enough to just build the infrastructure that connects machines and gathers data from around the world. Nor is it sufficient to provide a web portal for remote access and client management. What truly matters is designing value-added services that benefit end users, distributors, and maintenance providers alike.
When IoT-enabled services are conceived in this way, they can be monetized: machines enhanced with IoT and smart services gain a clear competitive edge, differentiating themselves from rivals and attracting new customers along the way.
According to the Anitec-Assinform report "Digital in Italy" , the digital sector could reach nearly €95 billion by 2024. Achieving this requires accelerating the integration of tangible and intangible assets (the so-called servitization) and boosting the adoption of AI, big data, cloud, and IoT across industries to create entirely new services and products.
The PNRR is also expected to boost GDP growth by 2.4% to 3.6% annually between 2023 and 2026, driven by investments in three key areas: digitalization, green transition, and mobility.. IoT adoption will benefit from this momentum, reinforced by the Transizione 4.0 plan, strengthened by the 2021 budget law with €24 billion linked to the Recovery Plan.
For many people, IoT simply means having all their machines connected, checking their operating status at a glance on a web page, receiving “smart” alerts on their phone when a specific machine breaks down, and fixing the issue by tweaking a few parameters remotely.
These features are certainly important, but they don’t automatically unlock new opportunities.
Here are some examples of value-added services that IoT can enable:
Selling machines through rental or “pay-per-use” models.
For the end customer, paying for a machine based on actual usage can be highly strategic. The manufacturer, in turn, can tap into new customer segments: thanks to IoT, they know exactly how and when the machine is being used, and can monetize those activities with significantly higher margins.
Hybrid sales models are also possible, somewhere between traditional rental and pure pay per-use. For example, the customer might pay a fixed fee plus a variable amount based on actual usage, or the upfront purchase price might be reduced in exchange for a lighter, ongoing pay-per-use fee compared to a full usage-based model.
Smart supply services for raw materials or consumables.
Most machines rely on raw materials or consumables during operation.
An IoT system capable of monitoring how and when the machine works makes it possible to coordinate the supply of these resources with maximum precision and timeliness. An IoT-enabled machine can autonomously notify when consumables are required, even making predictions to prevent production downtime. Moreover, this functionality also lays the foundation for the next type of service.
Partnership models with raw material or consumable suppliers.
IoT-enabled machines that anticipate their own needs can communicate directly with suppliers to streamline procurement. The manufacturer can build partnership models with these suppliers, creating mutual benefits for both sides.
The end customer, in turn, receives a high-value service where the entire machine operation is automated and managed with extreme precision. A manufacturer can stand out even with a single smart service like this, compared to a direct competitor offering a similar machine but without such an intelligent feature to complete the package.
Consulting and optimization services.
The machine manufacturer receives usage data from the end customer, gaining insight into how the equipment is actually used under real operating conditions. This enables them to offer optimization services for the machine itself or targeted consulting when it’s time to replace it with a newer model.
These services can be provided to individual clients or to entire customer segments, depending on the industry. As a result, the customer is able to increase the efficiency of machine usage.
This creates a stronger bond between manufacturer and customer, increasing loyalty and moving the relationship far beyond a traditional supplier–client dynamic.
Every industry and every production process has its own specific characteristics, which means value-added services must be carefully designed for each individual case.
The services described above are just a few examples of the smart solutions that IoT can enable. Once the intelligence and monitoring capabilities of the Internet of Things are introduced, entirely new business opportunities emerge ones that were previously out of reach.
By following this path, a machinery manufacturer can create value for the end customer and, in turn, monetize these services to its own advantage.
In addition to the direct revenue streams generated by selling IoT-enabled services, there will also be an increase in market share thanks to new customers attracted by these advanced features.
For any company aiming to evolve its business, the right approach starts with a broad vision of the value-added services to deliver—and only then should the IoT infrastructure be designed to support and enable them.
Hyperspace can provide you with the complete ecosystem you need to build your IoT infrastructure.
We can analyse your specific case and your machinery, and customise the IoT electronic board and the web portal/app that best meet your needs.
Together, we will also evaluate the server solution to be used for storing and managing all data.
We intend to do all this with a specific approach, considering the value-added services that the IoT will enable, and then building the connectivity system that is best able to manage these services.
Alternatively, we could also proceed in the opposite direction, creating an IoT system based purely on connectivity and thinking about value-added services that are useful for end customers as we go along.
For more information, please contact us using the form below.