With The Arrival Of Reliable Fast Networked Digital Informat
With The Arrival Of Reliable Fast Networked Digital Information Bus
With the arrival of reliable, fast, networked digital information, businesses can track the location and status of all kinds of objects, such as cars and bicycles. This is introducing a new business model different from individual ownership—now, using a car can become a “subscription” service. What options are there for “subscribing” to a car instead of owning one? How about for a bicycle? Are there other businesses you can identify that would be able to take advantage of digital information and become subscription services instead of vendors of a physical product? What are the advantages to the consumer of subscription over ownership? What are the drawbacks Need to write in APA format Need 300 words of written document along with 2 with Responses.
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The rapid advancement of digital technology, particularly the deployment of reliable and fast networked digital information buses, has significantly transformed traditional business models across various industries. The capability to track the location and real-time status of objects such as vehicles and bicycles opens new avenues for creating innovative subscription-based services that prioritize flexibility, accessibility, and shared usage over outright ownership.
In the automotive sector, several models have emerged where consumers can subscribe to vehicles rather than purchase them outright. These subscription services, facilitated by digital connectivity, enable users to access a fleet of vehicles on-demand, often through mobile apps. For example, companies like Porsche and Volvo offer subscription programs where customers pay a monthly fee that includes insurance, maintenance, and the flexibility to switch between different vehicles (Satariano, 2019). Similarly, the bicycle industry can leverage digital systems for bike-sharing subscriptions, allowing users to rent bicycles via smartphone apps for short-term use without ownership responsibilities. Citi Bike in New York and Lime's scooter services exemplify this shift towards shared mobility.
Beyond transportation, digital information enables various other industries to transition into subscription models. For instance, equipment leasing companies can utilize real-time tracking to offer equipment-as-a-service, where businesses lease machinery and track its utilization and condition remotely. Additionally, wearable technology companies could offer health monitoring devices on a subscription basis, continuously updating services based on user data.
The advantages for consumers include increased flexibility, reduced upfront costs, and access to a variety of products without long-term commitments. Subscription models also facilitate access to newer technology, as consumers can upgrade more frequently. However, these models may also have disadvantages, such as ongoing costs exceeding ownership expenses over time and potential restrictions on usage or customization.
In conclusion, the integration of digital information systems fosters innovative subscription-based business models, transforming ownership into flexible, service-oriented access that benefits consumers while opening new revenue streams for companies.
References
Satariano, A. (2019). Car subscriptions are taking over the auto industry. Bloomberg Businessweek. https://www.bloomberg.com/news/articles/2019-09-16/car-subscription-services-are-replacing-traditional-car-ownership