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3 Critical Steps for Achieving ROI with a Successful IoT Solution

Recently I have been approached by quite a number of senior executives who have been asked to participate in, or even lead, their organization’s IoT initiatives. Having already achieved great success in delivering other strategic projects, these executives are now being tasked with implementing IoT pilots and contributing to their company’s overall digital transformation. The problem, though, lies in the fact that many of these people are largely unfamiliar with the nuts and bolts of IoT, and are essentially learning as they go. Even when pioneered by established business leaders, a mere 26% of companies that have executed IoT initiatives considered their projects to be a complete success, according to recent study conducted by Cisco. In the same study, 60% of respondents attributed a lack of success to the fact that IoT initiatives prove to be much more complex than they appear on paper. Top cited challenges including time-to-market, IoT integration, lack of internal expertise, and budget overruns were credited to project failures, ultimately resulting in the inability to achieve a Return on Investment.

With these figures in mind, it is fair to make the assumption that businesses are recognizing the importance of IoT adoption and taking considerable steps to implement IoT solutions, but conclusively are unsure how to properly do so. Based on my experience in the IoT space, I want to share my thoughts with newly appointed IoT stakeholders on the three critical steps an organization must take to ensure a successful IoT deployment:

1. IoT Readiness Assessment and Strategy Development

To develop a successful IoT strategy with attainable goals, it is critical for an organization to take the very first step of assessing its current state to gain an understanding of what it is realistically capable of accomplishing. As noted by Gartner, this can be accomplished by conducting a quick IoT readiness self-assessment of, “basic, intermediate, or advanced” along two relevant axis: technical capabilities and vision. A “basic, basic” assessment would represent an organization that is new to IoT and just starting to articulate its vision whereas an “advanced, advanced” assessment might represent an organization with decades of telemetry experience that has a vetted out plan to enhance its existing services with IoT capabilities.

Beginning with “IoT readiness” level as a baseline, the next step is to develop an IoT strategy that is focused on achieving a clear, targeted business outcome. Looking at all potential IoT opportunities, organizations should select and focus on the one, single opportunity that will provide the most value, as not to divide resources among various IoT initiatives. Key foundational steps in strategy development include establishing organization and governance, determining system integration processes, assessing security requirements, selecting architecture, as well as identifying IoT partners and sourcing plans.

2. Partner Evaluation and Selection

According to the aforementioned Cisco study, organizations that have the most successful IoT implementations are those that engage their partner ecosystems at every stage of the process. At a high level, organizations will need to source the key components required to bring any IoT solution to life: network connectivity, device(s), application(s), and platforms. Procuring all or most of these components will require the help of a third-party partner that not only offers these products and services, but can also provide consultation and guidance based on IoT expertise.

When evaluating potential partners, a primary consideration should be the partner’s ability to deliver as many of the required components as possible. Managing multiple partner relationships adds another layer of complexity to what is already a highly complex deployment process, and coordinating logistics among the various IoT solution components requires dedicated resources. By selecting a partner that can deliver network capabilities, devices, platforms, as well as professional consultation services, organizations can streamline their supply chains and focus their resources on IoT solution deployment.

3. Lifecycle Management and Solution Optimization

Lifecycle management is critical to the success and the health of an IoT solution, and once one has been deployed it must be actively operated, managed, and maintained to ensure that all components are functioning as they should. Through continuous solution monitoring and/or routine assessments, businesses can identify issues early on and significantly reduce the risk of failure. Should any issues arise, partner organizations should be available to support the troubleshooting and resolution processes.

Closely related to lifecycle management, IoT solution optimization is key to deriving business value and generating ROI. An IoT deployment does not necessarily equate to a successful IoT deployment, and organizations should be leveraging data analytics related to network, device, and application performance to gain valuable business intelligence. This business intelligence can then be leveraged to identify areas for improvement and make adjustments for optimal solution performance.

 

Understanding that all IoT projects are unique, I feel that the beauty of these three steps is that they are universal and can be applied regardless of industry, budget, or desired business outcome, and at KORE, where I currently serve as the Vice President of Strategic Development in EMEA, I have seen these concepts successfully practiced over and over with the help of our team of IoT experts. I am confident that you will find this information helpful, however should you need further guidance to aid your IoT journey, myself and my colleagues at KORE are here to help.