Four challenges for getting started with IoT

Four challenges for getting started with IoT

If you are in the business of creating, operating or servicing things you have likely seen a barrage of “billions and trillions” reports recently describing the impact of the Internet of Things (IoT) on your business.

Cisco predicts we’ll see as many as 50 billion “things” connected to the Internet by the end of this decade. That’s a four-fold increase in just six years.

GE estimates that the Industrial Internet has the potential to add $10 to $15 trillion to global GDP over the next 20 years.

McKinsey Global Institute predicts the IoT will generate as much as $6.2 trillion in global economic value over the next ten years. That’s about ten times as much economic value as will be created by 3D printing, another transformative trend.

In order to create real business value in a smart, connected world, we need to shift our focus away from these “billions and trillions” reports and identify the specific IoT use cases that enable each organisational function to transform their business processes and improve operational effectiveness or create strategic differentiation.

Four challenges that slow IoT opportunities.

While some organisations have started to create tremendous value from the IoT, data shows that the majority of organisations are still struggling to get started. IDC research found that while 66% of Discrete Manufacturers and 67% of Process Manufacturers are actively pursuing IoT initiatives, less than half (40%) of those Discrete Manufacturers and only about half (55%) of those Process Manufacturers have even begun a pilot. Why the delay? Our partner, PTC have identified four challenges that slow the progress in creating and capturing IoT opportunities:

 

  • Unfunded Organisation who struggle to identify and priorities IoT Use Cases and develop a business case to fund initial investment.
  • Technology Driven Organisations that define their strategy based on technical capabilities instead of a clear value proposition and monetisation plan
  • Narrowly Focused Organisations that are only exploring IoT in one business function and have not championed the opportunity across the organisation.
  • Poorly Aligned Organisations that have not linked their IoT initiatives with corporate value drivers, such as reducing costs or enabling new revenue streams.

 

IoT Value Discovery

To help companies cut through this noise, InVMA has developed a Discovery Workshop that interactively helps companies realise specific benefits and value hidden in their organisation.

This workshop has been structured around successful digital transformation projects, with implementations ranging from simple remote monitoring to complex use of machine learning and predictive analytics for scheduling maintenance, maximising uptime and improved asset monitoring/management.

Read about the Discovery Workshop

Quantifying the Business Case for the IoT

Companies today are under tremendous pressure to deliver a higher quality of products and services at lower costs. Any expenditure companies do make is expected to deliver a measurable ROI. For product manufacturers in particular, ROI has traditionally translated to “reduce costs.”

However, cost is just one piece of the ROI equation. The IoT is creating new opportunities for companies to enhance their services, gain business insights, improve processes, and differentiate their offerings. In this ebook, you’ll learn;

  • Metrics for integrating smart, connected product data,
  • Translating product data into value,
  • Connecting data and business process efficiency,
  • Differentiated products that change the customer experience.
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