IoT or the Internet of Things allows companies to rewrite rules in their industries. Those who create and start using such technology in the near future can expect huge returns. The prestigious digital research firm Gartner estimates that there will be nearly 20 billion IoT devices worldwide in 2020, and companies providing IoT products and services will generate more than $300 billion in revenue.
The concept of the Internet of Things makes it possible to combine various existing technologies – mobile applications, sensors, databases, and self-learning machines to transform many areas – from manufacturing and consumer services to healthcare and transport. At the same time, IoT is still emerging and the creation of projects and comprehensive company strategies in this area is definitely a challenge. Because technology can be applied in many different ways, we cannot talk about a formula for success, but rather about fundamental principles. Let’s look at them.
- The user experience is leading
- Equal experience across all platforms and across channels
- Continuous improvement
- The focus is on data analysis
- Large-scale thinking and gradual expansion
- Results-oriented products
- Transforming projects into platforms
- The balance between data monetization and data protection
- Value chain transformation
- Excellent understanding of business dynamics
The user experience is leading
The main goal of IoT projects is to improve the user experience that the company offers. The question of how connected devices will solve customer problems must be answered in a faster and more efficient way. Business leaders always think first about the client and then include the other factors for assessing the profitability of each project. If the overall brand experience is improved, then the venture can be considered profitable, even if it does not bring quick profits.
Equal experience across all platforms and across channels
Channels are already communicating with businesses across many different platforms and devices (mobile apps and websites and smartphones and desktops, for example) and this trend will intensify with the advent of IoT. The experience should be the same, regardless of the option used. To this end, the continuity of information must be achieved.
Let’s take an example with a connected vacuum cleaner, given that IoT technology is entering homes more and more boldly. In the event of a fault, a signal can be automatically sent to the workshop, where the technician receives full information about what exactly is not working. So he can immediately contact the customer and offer a solution.
Connected devices and IoT technology enable companies to evaluate the business processes they have built-in more detail so that they can innovate more efficiently and move towards continuous improvement. This is due to the availability of more accurate data and clearer signals, both within the company itself and by customers and other contractors such as suppliers. Using them, managers will be able to create more adaptive tactics and strategies.
The focus is on data analysis
The amount and accuracy of data that can be generated by IoT are virtually unseen so far, but generating it alone is not enough. To be as useful as possible, the data must be analyzed and applied to models and algorithms. In this way, a “mathematical” understanding of the processes is achieved, which allows for the easier and more reliable making of positive changes. As technology advances, teams will spend more time defining metrics for the applicability, usefulness, and effectiveness of a digital product, service, or functionality than their design.
Large-scale thinking and gradual expansion
Successful innovation through IoT requires an advanced vision that can be refined and detailed in an overall strategy. However, it is good to work on a project basis for its implementation. It is good to start with smaller projects, so as to minimize the risk that is significant with the introduction of new and emerging technology. With experience, you can move on to larger ventures where the potential for profit is higher.
Connected IoT devices enable companies to not just sell products, but results. In this model, ownership, efficiency, and maintenance responsibilities are transferred from the customer to the company that provides the product. This is beneficial for both parties, as companies gain a deeper understanding of the work of their creations in a real environment, which helps their further development.
Transforming projects into platforms
With the platform business model, other companies can take advantage of the know-how created by your company and grow. You deserve greater competitiveness and valuable strategic advantage. Your IoT products and services can serve as a platform for other companies to offer their services to their customers. It should be noted that this model is becoming increasingly used in the technological field as a whole. For example, a mobile application developer may offer features already created by the company that other developers can integrate into their applications.
The balance between data monetization and data protection
In the digital age, data is considered the new “black gold” and although there are still no real examples of companies successfully trading IoT-generated data, this development is considered inevitable. Combining sensors, cloud services, third-party data, and APIs will literally power the IoT data market.
The sale of data is expected to become an important source of profit. Commercial companies, for example, have an interest in buying transport information, and energy companies are interested in purchasing energy data in homes by type of appliance. When selling data, companies must first consider the protection of their customers and processes.
Value chain transformation
This chain is a set of all processes that take place to offer a product or service to the end-user. Through innovation in the field of IoT, every “link” in this chain can be transformed and improved. The company that introduced the innovation can then partner with the others involved in the chain to build a complete solution. It all starts with discovering processes in the chain that add low or zero value, such as poor customer service.
We can take an example with a company that deals with the maintenance of air conditioning systems, and its customers are the companies that build them. It can install connected sensors in these systems to send a signal in case of a problem, so as to improve its efficiency and increase its revenue while saving system manufacturers time and effort.
Excellent understanding of business dynamics
In this way, finding opportunities for profit and development in the IoT field is easier and more efficient. The idea is to focus efforts on identifying the factors that will generate and maintain the strongest impetus to create growth. Another key aspect to keep in mind is risk assessment.
Success in technology is often due to collaboration between two or more companies. The most reliable partners must be found for each IoT project. This is of great importance due to the expectations that the biggest profits in this area will be generated not from the sale of the connected devices themselves, but from the infrastructure and tools that technology companies will be able to provide to their customers for the design, creation, and operation of these end devices, products, and related services.
If you have an idea for a new technology project, including a mobile application and/or web software, and you are looking for an experienced partner, contact our team by making an inquiry here.