How can you use digital technology and earn recurring revenue
Digital technology connects your things, reduce overall cost, increase the flow of revenue and keep things in your control. However, it might sound superficial if someone suggests that technology can earn recurring revenue for your business.
There can be uncanny resemblance with something like making a safe investment with reputed financial institute mainly banks and then you receive the dividends and interest for it. Technology does have the potential to create channelized income for businesses without interruption.
To elaborate, we here discuss a few business models which actually run digitally and are successful till date.
Tracking the material goods or assets from one place to another is the precise example of the technology-driven business model. The common issues in businesses like the transportation driven ones are like product getting stolen and sold on the black market, no clear information on the goods falling back of the truck, rented equipment getting misplaced and so on. But, with technology which allows asset tracking which helps to monitor the logistic operation perfectly reduces the chances of such events which are the reason for recurring losses and failures.
Another aspect where technology can generate a regular source of income is to track the consumable element of the product which the business deals in. it can be fuel, filters, oil and other aspects which are required on regular basis. Technology can automatically order the consumables when and where the demand arises. It might sound not very interesting and lucrative other than the consumer is saved the trouble of making a few calls and placing the orders. But the underlying aspects of this feature are it locks recurring sales, it prepares the company to forecast demand and finally improves conversion.
These are a few examples where technology or better IoT (Internet of Things) does play a pivotal role in channelizing regular source of revenues. There are many more such existing models where technology runs the businesses independently. There is consulting help which provides the businesses the right direction on how to choose, implement and run the IoT without any interruption.