This article was originally written by Dr. Thorsten Gudjons from Deloitte and highlights the cooperation with Quantoz in enabling IoT and blockchain based business models. For your convenience, it is translated from German to English.
Internet of Things & blockchain – how companies can sustainably improve productivity and customer orientation through the use of innovative technologies.
The use of sensor data collected automatically and in real-time for the innovation of business models is the focus of our service offering ‘IoT-enabled business models’. In cooperation with Quantoz, we offer innovative services and solutions based on state-of-the-art technologies. On the basis of the QUASAR solution (blockchain-based digital payment system) developed by Quantoz, customer-specific payment models can be developed that use manufacturer data (among other things) that use the ‘true intensity of use’ instead of calculated models. This creates measurable added value for both the customer and the leasing companies. Another use case is the 100% transparent and real-time tracking of supply chains (e.g. quality of food, chemicals).
Networking is the keyword of modern digitization initiatives and innovations. Data streams are networked with real goods streams and “digital twins” enable a new view of physical goods, which now become active or passive participants in the digital world. The central element for networking real goods with digital information networks is the use of so-called IoT (Internet of Things) technology. IoT is, in simple terms, the combination of sensors along a process chain that are joined together for ‘data production’ with secure and powerful data processing instances.
The first use cases for networked IoT technology are already in use. For example, there are already vehicles equipped with the corresponding technology, which instruct and process payments for washing, parking and battery charging in a fully automated manner with the help of networked chips and blockchain technology.
Furthermore, the so-called ‘smart pallet’ is in the trial phase with well-known industrial companies. With the help of this ‘smart pallet’, flows of goods can be electronically recorded directly and in real-time. The resulting data sets are used, for example, to monitor the delivery flows and conditions (e.g. weight and temperature) of the goods or to initiate financial transactions synchronized with the real flow of goods.
Cross-company network structures and blockchain
The use cases mentioned make it clear that isolated development and use of IoT technology significantly limits the benefits. Full utilization of the network effects is only meaningful and possible through the use of cross-company network structures, e.g., the operation of a common infrastructure. In order to enable the successive expansion of network structures to include additional participants, services and functionalities, standardized technology should be used wherever possible. The blockchain as a distributed ledger, which grows in the course of use and can be expanded by additional nodes, has proven to be a sensible core technology.
QUASAR: payments for IoT-enabled business models
In cooperation with the Dutch FinTech Quantoz, Deloitte offers a standardized ‘out-of-the-box’ solution that has been tested with various clients and industries. Using blockchain technology, it creates fully automated transactions based on signals and then processes them on a case-by-case basis. The QUASAR payment system developed by Quantoz acts as a central medium for identifying, initiating, storing and processing transaction information and already meets all regulatory and legal requirements placed on electronic payments. Users do not have to resort to cryptocurrencies, but can process transactions in the currency of their choice.
For leasing and financing companies, among others, the increasing customer-centric nature of business models means that constant payments are not transferred over the term according to financing structures once agreed, as was previously the case. Instead, customers (e.g., in earnings-volatile sectors such as agriculture) want their financing or leasing installments to be adjusted to their liquidity over the course of the year. The fully automated tracking of usage data for agricultural machinery enables tailor-made financing solutions based on the residual value and type of use of the financed equipment. The data generated – always in close coordination with the owner of the data – is also of great interest for follow-up business and cross-selling (e.g. of insurance products or maintenance services) in further expansion.
Transformation towards innovative and customer-centric business and operating models
Conclusion: The paradigm shift towards intelligence-enabled business and IoT-based business models will change both the real economy and the financial services sector more in the next 5 to 10 years than has happened in the last 20 years. The first use cases have already been implemented – these will further increase the pace of innovation. In the future, companies that succeed in transforming to innovative and customer-centric business and operating models based on information and the orchestration of innovation in collaborations will be successful. Intelligence-enabled banking focuses on precisely this and, due to the existing platform solutions, leads to the realization of intelligent and innovative solutions with a significant contribution to earnings with limited investment costs after only a short time.