Disruptive Business Model: Mobility-as-a-Service (MaaS)

Mobility as a service (MaaS) incorporates the options/elements of an emerging and new transportation model—particularly in urban areas—that removes the need for private vehicle ownership by offering bundled transportation options as a service. Through an integrated effort of public and private organizations, riders can embark on personalized and optimized transportation routes using a variety of different transportation modes including cars, buses, trains, bikes and scooters.  MaaS promises to revolutionize transportation by building and lkeveraging platform technology to connect and improve all aspects of travel. The philosophy can be applied across a broad range of technologies from autonomous cars through to connected cities. For businesses, MaaS initiatives aim to unify all modes of transport for a business into one simple and easy to use platform with the objective of improving cost and efficiency through shorter travel planning and cost comparison. For families or solo travelers, Mobility-as-a-Service aims to improve the planning and management of travel into a customized journey without the challenge of searching through multiple booking search engines.

Every business model requires a monetization method. Mobility-as-a-service on the surface has a straightforward model: MaaS providers charge either a fixed-rate or variable rate for different service options. However, things get complicated due to the interconnectivity of the system. While specific roles maintain traditional revenue models such as manufactures wholesaling, transportation providers rely on a complicated method for dividing up payments.  This method hinges upon many variables including rides per day, distance traveled, cost per trip, etc. These organizations will need to evolve towards a equitable system that makes MaaS profitable for all those involved.

Growth of Equipment-as-a-Service (EaaS)

New research suggests that we may be at the beginning of a new business model paradigm for industrial equipment.

Back in 2010, few people foresaw that the 2010s would see a major shift in business models towards what is now widely known as the “subscription economy”.

There is one underlying reason why these as a service business models thrive: consumers want outcomes, not ownership. And in the 2010s, subscriptions became the dominant model of choice to get rid of that ownership.

We believe that we are at the cusp of a new business model innovation that would disrupt enterprise equipment ownership: equipment as a service – where companies pay for outcomes, not equipment.Equipment-as-a-Service-min

Primary Drivers of IoT Initiatives Vary By Sector

Despite the distinct types of IoT initiatives within each industry, just about everybody shares the same overarching goal: staying innovative and competitive. But it’s important to take a more specific look at what is driving IoT initiatives, what benefits are being captured, and some of the unanticipated advantages that arise after implementation. Continue reading “Primary Drivers of IoT Initiatives Vary By Sector”

Tax Implications of the New IoT Business Models

Even as companies race to invest in IoT-enabled capabilities and offerings, many are still struggling to build a robust and profitable business case for them and one issue that looms large is that the tax aspects are generally not being included in the IoT value equation that drives decision-making – a potentially huge mistake. Continue reading “Tax Implications of the New IoT Business Models”