What is the Internet of Things?
The Internet of Things, or IoT, is all about bringing the Internet to devices that you typically don’t think of as being connected. It’s about taking Internet connectivity beyond such traditional devices as desktop and laptop computers, smartphones and tablets to other devices and…things.
- Embedding these objects with software, sensors and network connectivity
- Giving each one an IP address to create a unique network identity
- Connecting them to let users interact with and monitor them
Each IoT-connected device can send and receive information and communicate with other objects without human-to-human interaction. Although IoT is a new concept for many, it already connects more than five billion devices worldwide. That number is expected to grow to 30 billion over the next decade. With this kind of expected growth, it is the wise organization that is developing a strategy to reap the benefits IoT offers and remain competitive, regardless of the industry in which they operate.
Disruptive innovation drives digital transformation across industries
IoT is one of many “disruptive technologies” that are driving innovation. This new breed of offerings is creating new markets and displacing established competitors that are slow – or simply refuse – to adopt new ways of doing business. Companies that wish to remain competitive are assessing how these revolutionary technologies can help increase their productivity, agility and cost efficiency. Disruptive technologies such as IoT, cloud computing, big data and analytics can help you streamline your operations and support new ways to engage with your customers. Choosing the right set of technologies and maximizing the returns they can offer, however, remain core challenges.
IoT is one of many “disruptive technologies” that are driving innovation.
IoT is at the beginning of its growth cycle. Because it offers the ability to capture and use data across virtually every aspect of your operation, the potential benefit is enormous. To get there, Frost & Sullivan believes organizations must ask themselves these key questions as they begin to investigate IoT:
- Where does IoT fit within the scope of my unique business requirements?
- What real-world benefits can IoT deliver for me?
- How do I find the optimal IoT solution partner?
Iot can drive meaningful breakthroughs in business performance
IoT can transform industries. It allows businesses to de-construct old, inefficient processes and re-construct processes in an efficient and reliable way
The Internet of Things will become pervasive. It has evolved from a competitive differentiator to a competitive requirement. If your business is not currently invested in IoT, running a pilot to evaluate how IoT can help is a prudent first step. To set one up, you must first choose the right IoT solutions.
Dramatic pace of innovation requires versatile solutions
Businesses can reinvent themselves by implementing disruptive technologies. Data-driven enablers such as IoT and intelligent automation add huge benefits to companies that adopt them, while those that hesitate to commit to a digital future could fall behind. Frost & Sullivan research suggests IT decision makers are especially concerned with their ability to make timely and effective investments, comply with new regulatory requirements, and improve business processes.
At the same time, the relationship between consumers and businesses is fundamentally changing. Consumers want greater choices, better control and 24-7 access to services. Therefore, businesses such as yours must adopt agile technologies that allow you to respond quickly to this new customer mindset. It’s time to say goodbye to legacy technologies that will prevent you from adapting – and thriving.
It’s time to say goodbye to legacy technologies that will prevent you from adapting – and thriving.
IoT collects vast amounts of data that can improve existing products and enhance the development of new ones. You can track how your products and services are used and by whom. IoT lets you resupply stock in timely and cost-efficient ways. With IoT-gathered information, you can proactively offer customized service, support, warranty plans, upgrades, add-ons and replacement recommendations.
IoT should be flexible, scalable, and customizable
IoT solutions must be flexible enough to shift with a company’s evolving needs. The applications should have simple architectures, be easily configurable, and require minimal upfront custom development. Companies should partner with a vendor that can help in each step of the IoT journey, from envisioning to strategy formulation to technology selection
Next generation business models redefine future business propositions
The ways in which your products are developed are about to change – dramatically. Even your business proposition is likely to be fundamentally altered. These new realities are being driven by a series of revolutionary new business models that include:
- The Sharing Economy, where products are shared among multiple users in a pay-per-use model
- Product Personalization and Customization, including personal and on-demand product manufacturing
- Crowdsourcing and Co-creation, where product development is opened to the masses, and
- Product as a Service, which sees products offered on a subscription or subsidy model.
Technologies that help companies measure and monetize the usage of their products are essential for supporting these models.
Emergence of a product as a service model
Product as a Service allows providers to offer products as integrated service offerings. You pay a recurring fee for using the product. The provider manages the product or solution through its lifecycle. They can offer service contracts, support, enhancements, upgrades and extended warranty programs to drive revenues and create long-term relationships with you. For example, providers can offer IoT as a Service and provide the management of devices, applications and connectivity for customers.
Some successful IoT solutions being delivered as a service today include:
- Tracking asset locations as they move through the supply chain, and
- Food Safety solutions that monitor and record temperatures of assets used in preparation and storage of food items
Forward-thinking businesses want to re-invent themselves by providing faster, more effective, safer and cheaper customer service and support. IoT allows you to proactively analyze and repair issues before they become serious (and expensive). Consequently, IoT can reduce your equipment downtime and repair costs.
IoT allows you to proactively analyze and repair issues before they become serious and can reduce your equipment downtime and repair costs.
Iot drives innovative business models of the future
Without an IoT strategy, your business will soon find it hard to compete. Selecting the appropriate IoT provider that can scale and meet your business requirements is a priority and will correlate to the success of your business’s long-term growth strategy.
This data was prepared by:
Brent Iadarola, VICE PRESIDENT | Digital Transformation (ICT)
Vikrant Gandhi, INDUSTRY DIRECTOR | Digital Transformation (ICT)