Asset Leasing System with Sensor-Based Usage Billing

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Solution Overview

Problem

Conventional asset leasing systems face challenges such as limited accessibility of assets, high operational costs due to unnecessary transportation of assets, and inflexibility in usage, as well as inefficient billing structures that do not account for actual usage conditions.

Innovation Solution

A leasing system that employs geo-referencing and sensors on assets to remotely monitor usage conditions, allowing for dynamic billing based on actual usage, reducing operational costs by minimizing manpower and enabling flexible asset deployment and usage.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Adaptability or versatility

If assets are stored at fixed lending locations, then asset security and management are simplified, but asset accessibility and flexibility for lessees are reduced

Engineering Contradiction:

Improveasset accessibilityVSAvoidsystem complexity

Core Design Contradiction:

Adaptability or versatilityVSDevice complexity

Solution Approach 1:

The system enables self-service leasing where lessees can independently initiate leases through electronic devices without staff intervention. Sensors on assets automatically detect usage conditions and trigger lease start/stop, eliminating the need for manual check-in/check-out processes at fixed locations.

Inventive Principle:

Principle #25Self-service

Solution Approach 2:

The patent replaces manual mechanical systems (physical asset pickup/delivery, paper-based billing) with electronic and automated systems. Electronic devices communicate with central servers, sensors automatically detect asset status, and digital billing is generated based on actual usage conditions, eliminating the need for fixed lending locations and manual operations.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

2Productivity

If assets are transported back to storage areas at lease end, then asset inventory is maintained, but operational costs and time are increased

Engineering Contradiction:

Improveoperational efficiencyVSAvoidtransportation cost

Core Design Contradiction:

ProductivityVSLoss of energy

Solution Approach 1:

The system dynamically determines asset disposition based on real-time usage conditions and lease terms. Assets are not automatically returned to storage but remain at lessee locations if usage conditions indicate continued need, allowing flexible redistribution rather than rigid cycling back to central storage.

Inventive Principle:

Principle #15Dynamics

Solution Approach 2:

The billing system changes from fixed time-based charges to usage-condition-based charges. This parameter change incentivizes efficient asset utilization and allows assets to remain at productive locations longer, reducing unnecessary transportation while maintaining inventory optimization through digital tracking.

Inventive Principle:

Principle #35Parameter changes

3Measurement precision

If flat-fee billing is used for fixed lease periods, then billing simplicity is maintained, but accuracy in reflecting actual usage conditions is reduced

Engineering Contradiction:

Improveusage measurement accuracyVSAvoidbilling system complexity

Core Design Contradiction:

Measurement precisionVSDevice complexity

Solution Approach 1:

Sensors on assets provide continuous feedback on usage conditions (movement, location, operational status) to the central system. This feedback enables dynamic billing calculations that accurately reflect actual usage, replacing static flat-fee structures with usage-based pricing while maintaining system manageability through automated data collection and processing.

Inventive Principle:

Principle #23Feedback

4Loss of information

If manual asset tracking and billing is used, then system simplicity is maintained, but labor costs and billing accuracy are increased

Engineering Contradiction:

Improveusage information accuracyVSAvoidsystem complexity

Core Design Contradiction:

Loss of informationVSDevice complexity

Solution Approach 1:

The system replaces manual tracking and billing processes with automated electronic systems. Sensors on assets automatically detect and transmit usage data, the central server processes this information against lease terms, and digital billing is generated without manual intervention, eliminating human error while managing complexity through standardized digital workflows.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

Data Source

PatentUS7941354B2Method and system for lease of assets, such as trailers, storage devices and facilities

Publication Date: 2011.05.10 ASSET INTELLIGENCE LLC

AI summary

A method and system of providing for the rapid availability of assets to customers wherein a lease method and system is provided which includes lease terms, a leasable asset with a unique identifier, associating the lease terms with the asset through the unique identifier, at least one sensor on the asset for detecting the status of at least one condition that starts a lease, a communications system for transmitting information from the sensors on the asset to a central management system, determining the amount due based on the status of the sensors and the lease terms associated with the unique identifier, and preparing an invoice based on the amount due determined.