IoT enables the move from a CAPEX-based business model to a recurring OPEX-based business model.
The move from CAPEX to OPEX is good for the environment because it significantly reduces the use of resources. Most products are produced with a planned-obsolescence timestamp. This is due to the business model of manufacturers where goods are bought.
If instead these physical goods were sold as a service, there would be an incentive for manufacturers to make high-quality products, which are repairable, upgradeable and which have a long lifetime.
IoT is an enabling technology for this. With IoT, products can actually improve over time.
Seluxit CEO, Daniel Lux, will hold a talk to further explain at the upcoming Circular Economy Forum, in a digital event with its base in Milan.
In the talk, Daniel will address three ways that IoT supports the circular economy: (1) IoT enables an OPEX-based business model, (2) IoT can help extend the lifetime of products, (3) IoT can enable reusing existing products for new purposes.
Daniel’s talk will be on Wednesday, 28 October from 18:30-18:45.