By Prangya Pandab - November 19, 2020 3 Mins Read
IoT is changing the way business is done today and is recognized as the driving force behind the Fourth Industrial Revolution. But today, companies are still struggling with tangible value creation by leveraging the power of IoT.
The Internet of Things (IoT) is a game changer for enterprises, but, many IoT projects struggle with proving their business value. One of the crucial success factors for an enterprise IoT project is dependent on a complete recognition and documentation of the tangible business value that IoT can create for the business. IoT is a colossal disruptive technology with huge potential, but it is all for nothing without a clear strategy.
Digital transformation is impossible without IoT. It is increasing revenue and also opening up new revenue streams. It also enables business transformation with adopters using IoT and analytics to improve business decision-making. An interesting aspect of IoT is that it is intensely device-centric.
However, the real value lies in the data that is produced and not in the devices. Integrating this data with other operational data can help uncover insights and set up predictive models.
IoT is changing the grounds of competition and is driving new business models for companies. To create IoT business value, it is vital to understand its unique offerings for the customers.
IoT can help to amplify the value and provide entirely new ways to serve existing and new customers. Companies willing to enhance their operations will find that IoT data they gather can be used to create new businesses.
Due to the broad spectrum of elements and competencies relevant to IoT, it is often challenging for one single player to provide a whole IoT solution framework on its own. While some companies are hiring to improve their IoT talent base, others are taking the help of consultants or are identifying efficient vendor partner organizations with the necessary skill sets to unlock the full value of IoT.
The advantages of collaborating with partners in the value chain are lower costs, shared risk and development, credibility, and easy access to the marketplace. The speed of innovation, combined with the complexity of solutions and the need for scalability, demand solid partnerships to succeed.
Everything is important in an IoT ecosystem, but while the infrastructure will deliver a working IoT solution for the business, the data side will lead to true business transformation. Therefore there is a need for a sound business reason for developing an IoT solution in the enterprise.
The success or failure of IoT solutions in an enterprise hinges on the stages of IoT evolution, the defined governance model, an innovative mindset, and the IoT business plan.
The organizations that use IoT systems are faced with a multitude of opportunities and challenges. For many organizations, IoT remains a very theoretical concept, and they fail to see the real ways they can leverage it to have a positive impact on the business. Business owners and leaders need to understand its value, so they can be suitably adapted for the upcoming changes.
Prangya Pandab is an Associate Editor with OnDot Media. She is a seasoned journalist with almost seven years of experience in the business news sector. Before joining ODM, she was a journalist with CNBC-TV18 for four years. She also had a brief stint with an infrastructure finance company working for their communications and branding vertical.
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