Identify and Describe the Possible Benefits That IoT Provides to a Business or Organization. ITP-110 Practice Questions (Page 7)

Questions 31–35

1. 31application · medium

   A fitness equipment manufacturer sells treadmills and ellipticals. The company wants to increase customer loyalty and encourage repeat purchases by offering added value to existing customers. Which IoT feature would most directly enhance the current revenue stream?

   • AAdd connected workout tracking that syncs with a mobile app, providing personalized fitness insights and social challenges.
   • BSell customer workout data to health insurance companies without consent.
   • COffer a one-time firmware update that fixes a minor bug.
   • DReduce the price of accessories like heart-rate monitors.
   Reveal Solution Discussion Select an answer first
2. 32foundation · medium

   A company that makes industrial motors starts offering a 'machine-as-a-service' model where customers pay per hour of motor usage instead of buying the motor. How does this represent an innovation opportunity enabled by IoT?

   • AIt eliminates the need for manufacturing motors.
   • BIt creates a new business model based on usage-based pricing.
   • CIt reduces the need for customer support.
   • DIt guarantees higher profits than selling motors outright.
   Reveal Solution Discussion Select an answer first
4. 33application · medium

   A traditional watchmaker wants to enter the wearable technology market. The company has a reputation for craftsmanship but lacks experience in electronics. Which IoT strategy would best enable the company to enter this new market while leveraging its existing strengths?

   • ADevelop a smartwatch entirely in-house, investing heavily in new engineering talent.
   • BPartner with a technology company to develop a smartwatch that combines the watchmaker's design with IoT features like fitness tracking and notifications.
   • CLicense its brand name to an existing smartwatch manufacturer for a one-time fee.
   • DContinue selling traditional watches and ignore the wearable trend.
   Reveal Solution Discussion Select an answer first
5. 34foundation · medium

   A chemical plant installs IoT gas sensors to detect toxic gas leaks. How does this primarily enhance safety?

   • AIt eliminates the need for safety training.
   • BIt automatically neutralizes the toxic gas.
   • CIt enables real-time detection of leaks, allowing immediate evacuation and response.
   • DIt guarantees that no gas leak will ever occur.
   Reveal Solution Discussion Select an answer first
6. 35expert · hard

   A food processing company wants to increase production agility to respond to changing customer orders. The current production line is rigid and requires manual changeovers. The company also wants to reduce waste from overproduction. Which IoT strategy would best enable rapid adaptation and waste reduction?

   • AIncrease the batch size to reduce the frequency of changeovers.
   • BHire more workers to speed up manual changeovers.
   • CUse IoT sensors to track real-time inventory and production status, and implement automated changeover procedures based on demand signals.
   • DProduce only standard products and discontinue custom orders.
   Reveal Solution Discussion Select an answer first