The value of the Internet of Things is escalating to new horizons. The current worth of the IoT market is $900 billion, which is predicted to reach $5 trillion in the next five years. The lucrative opportunities it presents are overwhelming for businesses of every stature. Despite the rapid growth, more than 70% of IoT projects are failing.
Companies are still unable to quantify the returns of IoT and use the technology to get optimum results, preventing many from adopting this innovative technology. Research showed that 34% of companies who have already embraced IoT are unable to measure its business benefits. If IoT solutions were simple, then it would encourage businesses to step forward towards this technology.
However, there are few ways to ensure that businesses are investing in the right IoT technology. By considering the factors mentioned below, companies can select right business models that can be scaled effectively.
Selecting the IoT technology based on rumors is undoubtedly the biggest mistake companies make. They fail to set concise goals before making a heavy investment. This is the main reason why most IoT projects fail. Before taking hasty decisions, businesses must create a strong business plan and identify the metrics. A strategic plan will help businesses to think beyond the horizon and scale IoT productivity.
On the other hand side, IoT technology manufacturers are integrating more and more functions without realizing the customers need. They are solely concentrating on selling hardware with more features rather than solving customer needs. For businesses to adopt IoT technology, manufacturers should transform hardware products to “things as a service.” The products should be able to cater business needs while identifying new possibilities too for businesses to penetrate new horizon,
Sourcing the skills
Gone are the days when your old team of IT professionals could handle all the hassles of an organization. Businesses today are facing a new wave of technical challenges, especially related to the Internet of Things. Researchers have identified that big companies lack competitive skills to understand the technical algorithms of modern technology. The best method to tackle this problem is to search for new employees with desired skill sets.
Remember, IoT is evolving at a rapid pace. Soon, IoT technology will alter every aspect of the business. So, hiring skilled personnel to handle all your IoT requirements effectively will help you to stay a step ahead of the game shortly.
Don’t underestimate the power of data
The data gathered by each device inside your organization plays a vital role to ensure growth and sustain profitability. It can help businesses to map out effective strategic plans and provides ideas on new market opportunities. The data provides savvy businesses with a real opportunity to monetize IoT.
Many companies are stepping back from adopting IoT. However, it is best to understand your business and the technology it requires to eradicate the barriers to reach new horizons. Take small risks if required, and if you manage to crack the code, your business will receive big benefits shortly.