The old business models prevalent in the past years are now being transformed by deploying IoT concepts. This clearly reveals the bottom line impact of IoT on the organizations.
Organizations benefit from IoT by connecting their assets and harnessing their data to create more value. While connection is only the first step in this process, the real stuff comes from the data gained and how these readings can translate into valuable business enablers.
While there is much to adapt from successful players in IoT with complex concepts and solutions, there are ample opportunities for organizations just starting out with IoT. There are three key business fundamentals where companies of any size can gain and prosper.
No. 1: Reduce costs
Cost cutting by minimizing expenditures has always been an easy task as compared to building revenue. The same principle applies when it comes to building value and reducing costs with IoT. Per a recent study, where customers were asked the question of what they think they gained from IoT, majority of them mentioned that creating efficiency and reducing the costs of doing business was one thing that benefited them the most.
While almost every company could benefit by collecting data and information automatically for analytical purposes, other common IoT scenarios for increasing efficiency and costs reduction include real-time inventory tracking to reduce the time wasted in searching parts to ensure the right ones are always on hand.
With organizations struggling to streamline their vision for IoT and focus on the fastest time to value, reduction in costs provides the shortest possible path to success.
Also Read: What is Internet of Things?
No. 2: Increase revenue
Another major reason of companies taking interest in IoT and leaning towards it is the increased revenue that can be achieved with IoT. However, since it often requires building out the organization to harbor the new business, it generally takes longer to realize ROI from the effort.
The rewards though time taking, are substantial. It is seen that many customers leverage their initial IoT work into new services that can be added on top of products to generate post-sale revenue streams.
Some of the examples where companies were successful in increasing revenues are remote monitoring and predictive maintenance.
No. 3: Transform the business
Over decades, only a handful customers have mentioned that transforming their business was a key goal at the outset of their IoT initiatives. However, many adopters say that they now see the potential for a data-driven transformation arising from their efforts.
The most common scenario for such a transformation is the ultimate maturation of additional revenue streams into a new business division.
In the current scenario, more companies are thinking of adopting IoT concepts in their businesses by disrupting their old working models and work smarter to gain more from IoT.
The key to achieving is to start small and be very focused at the outset. As the solution matures and capabilities grow, new opportunities will emerge.