Why Invest in the Internet of Things

CIOReview | Monday, November 20, 2017
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Despite being in its early stage, Internet of Things (IoT) is already demonstrating a significant impact on the development of new products and services across different verticals. Services are being dominated by the professional IoT-operational category in which technology providers’ aid businesses in designing, implementing and operating the Internet of Things.

“Gartner, Inc. forecasts that 20.4 billion connected devices will be in use worldwide by 2020. Total spending of $2 trillion on endpoints and services is estimated by the end of 2017. The Internet of Things (IoT) has a potential economic impact of up to $11.1 trillion a year by 2025.”

With the exponential growth of data, IoT continues to offer massive opportunities for direct and ancillary services, and new opportunities to track and measure how customers are consuming products and services. Companies looking to generate revenue from the IoT will need to transform the information from smart, connected products into services by offering the entire product as a service, or using the product’s data stream to engage customers with additional services.

[Read this whitepaper: IoT Monetization Strategies for Connected Devices]

Driving Revenues using IoT

The demand of any marketing strategy is to be more adaptive today and the IoT can help enterprises obtain better insights on how to increase their revenues amidst the challenge of conquering the global market. 

  • Data Gathering. Using the IoT model, businesses can effortlessly capture targeted data to assist them in revamping their revenue streams, acquiring customer engagement and loyalty, and making their business highly responsive in real-time to identify revenue opportunities as they come.
  • Build more dynamic business models. With the IoT model, businesses can be built in a dynamic operational environment to facilitate an efficient way of increasing the market performance with the ability to respond to their customers’ needs more quickly, thus promoting customer satisfaction and experience.
  • Global Presence. The IoT experts can enable marketers to realize how to embrace the unique environment of the digital market and to learn how to expand the business in the global market space.
  • Tailoring Business Intelligence. IoT can help businesses learn how to implement decision making more accurately, using logistics and deployment of business resources, to maximize revenues.
  • Engaging in Diversified Revenue Sources. Marketing managers will become more adept in finding the best revenue streams that will yield more income for their business by identifying best selling products and making them more marketable to their consumers.

Foundation for a Data-driven Future

Building connected product fleets to fulfill real-world needs is exciting and powerful, not just for the amount of value it brings today, but also for the value it promises in the future. In order to make initial connected product offerings effective, it is essential to intertwine individual product performance with a long-term objective to revolutionize the company and the industry based on data analytics.
Data analytics progresses in four stages of maturity, each building on the one before it:
1. Descriptive analytics. What exactly happened?
2. Diagnostic analytics. Why did it happen?
3. Predictive analytics. What might happen?
4. Prescriptive analytics. What is to be done?

For any of these levels of analytics to be attainable, devices must first be connected, which starts with a connected product strategy foundation that is valuable in and of itself. However that strategy must also pave the way for a future of data-driven analytics that can revolutionize the way users engage with products and brands.

How IoT applications benefit your business

There are a lot of ways by which the Internet of Things can help increase your revenue opportunities. Here are some game-changing perspectives on how to administer a monetization campaign using the IoT model:

  • Prevent potential losses for your digital marketing campaigns by identifying risks and loss indicators.
  • Track inventories wisely, to identify potential income from the available resources and eliminate those with high risk of business losses.
  • Identify business assets and drive potential marketing campaigns to optimize your earnings.
  • Minimize business downtime using strategies that allow you to gain insightful predictions on downtime occurrences and use this data to find the proper contingency solution to monitor, and address this problem as it occurs.
  • Identify maintenance programs essential in responding to the probable occurrence of problematic issues in your business operations in the future.
  • Utilize different revenue nodes or devices to monetize the performance of your business.    

    Conclusion

The new world of connected product opportunities is an exciting as well as terrifying place to be. The chance to better connect with consumers, build deeper brand loyalty, and increase insight into how products and features are used has never been as formidable. Meanwhile, the threat of new market entrants and disruptive product offerings has never been more near. The time to act is now! With a carefully crafted understanding of connected product value creation, a solid model to turn that value into near-term profitability, and a long-term perspective on the importance of data, organizations can not only create products that connect with customers, but build a foundation to lead their market into decades of future growth.