When your business is getting started with IoT, identifying your business objective is the first step toward maximizing the value of IoT to your company. Figuring out where it will make the most impact, and comparing direct and indirect costs against the benefits, are the next step in successfully implementing IoT. In the coming weeks, I’ll be taking a deeper look into each of these areas.
In our work with our customers, we’ve found that many companies initially struggle to find the best point of entry for IoT in addressing their business needs. What’s important to remember is that with IoT, one of the primary benefits to an enterprise is the wealth of data that can be captured. If devices and connectivity are the heart of the Internet of Things (IoT), the resulting data, analytics and actionable insights are the embodiment of how businesses can digitally transform themselves.
We generally advise customers to start small, with a methodical and measured approach and realize that the transformation will follow. Yes, you should consider future possibilities in planning the solution, but by focusing on what’s necessary right now, you’ll gain the focus and clarity necessary to increase the likelihood that your initial IoT investment can have a measureable and sustained impact.
With that in mind, here are four tips to help calculate, and maximize, your company’s ROI on IoT. In the coming weeks, we’ll go deeper into the practical elements of planning an IoT solution:
- Weigh the cost of taking action against the risk of doing nothing at all
It’s understandable why some companies hesitate to move forward with IoT, perceiving it as a nascent or yet-to-be proven technology. But today, many businesses are reaping tangible benefits from investing in IoT, and that number continues to grow. The trend we generally see is that companies who are farther along in their deployment of IoT across their business are the ones getting ahead and finding even more value from the approach.
- Start with a specific business area
Narrowing the initial scope of your project to a specific area makes it easier to predict direct and associated costs, which can be unclear with new IoT deployments. Providing some well-defined parameters around the project not only helps to identify the benefits of an IoT solution, but can also help to make the case for additional IoT investments down the road.
- Determine your business objective
What is the particular problem that you’re trying to solve? Reduce costs? Increase revenue? Streamline operations? How you respond to these questions will depend in part on the industry in which you operate, but answering them will help to crystallize your thinking about how or where IoT can have the most impact.
- Maximize ROI with your end goal in mind
In listing out the requirements for your IoT solution, keep your end goal in mind. This helps to ensure that your investment delivers more long-term strategic value and maximizes the return on your investment, rather than simply addressing day-to-day tactical needs that don’t accrue to a larger goal.
Also, if you’re ready to learn more right now, check out our latest whitepaper “Addressing ROI in Internet of Things Solutions”. And to find out how IoT can transform your business, visit www.InternetofYourThings.com.