We often hear that IoT is a key driver for business growth but what is driving IoT? What is driving decision-makers to invest in the future of their business?
While 96% of senior business leaders say their companies will be using IoT in some way before 2020, and 68% are already onboard to some extent, it seems we’ve barely scratched the surface of what IoT can deliver when it comes to profitability, sustainability, and new revenue streams.
Reasons to invest in IoT can of course vary from sector to sector, and outside influences, such as economic conditions, can’t be controlled. But overall IoT comes down to one thing for most companies: How will it impact the bottom line.
Understanding the value of IoT for your organization and the return on your IoT investment will drive your decision-making. Here are some of the main reasons more and more companies are investing in IoT:
Efficiency Decreases Costs
Access to real-time data allows businesses to move from being reactive to proactive. The flow of timely and accurate information gives actionable insights that drive change, such as cutting costs and improving efficiency. On the other hand, collecting and correlating data over time from multiple sources allows companies to put things in perspective and gain new and deeper insights. Access to data both in real time and over time leads to more precise predictions and better decision-making.
New startups focused on disrupting more established industries are popping up all the time. Making changes through IoT before the upstart arrives – essentially becoming the disrupter – is a way of leading the industry into the future, forging the new IoT path before anyone else. This can put established companies ahead of the game, and some can move from being a mid-industry player to an industry leader. This can involve anything from new ways of packaging services to moving from products to services. At the end of the day, a general market repositioning can help companies not just survive in a fast-moving and competitive marketplace but thrive, creating its own future and staying ahead of competitors.
Create New Revenue Streams
With 11 trillion dollars of revenue predicted to be generated by IoT by 2020 how does a company grab a slice of that pie? From manufacturing to transport to utilities and beyond, how to monetize IoT data isn’t always clear. One way of creating new revenue streams is to take an already existing product and add a layer of connectivity. This data can then be utilized to develop both better products and new products with greater customer satisfaction in mind. And, as mentioned above, to really monetize IoT, the shift could mean moving from products to services, either through offering the product as a service or using data to create new services.
Sustainability Pays Off
Using technology to create a better world has been a growing trend for at least the past four decades, and IoT is simply speeding up the process. Both data and connectivity can drive business while also creating a sustainable future. Connected devices can cut the distance products have to travel, improve efficiency, create smart cities, drive energy efficient buildings… the list of ways IoT can be employed to increase sustainability and reduce the use of resources is nearly endless. Essentially, data will be a key driver in the sustainable sector for many years to come.
In order to succeed companies need to transform. IoT and the data generated will be a key part of any transformation, no matter the sector. For manufacturing this might mean increased product quality and reduced operating costs, while in Energy it could mean operational efficiencies, and in healthcare it could be customer experience. The bottom line is that if businesses are going to increase revenue and become more efficient and sustainable they will have to adapt, leveraging the knowledge of customers gained through IoT to create new business models.
At Tele2 IoT we make the complexity of IoT simple, turning it from a headache into an opportunity.