Companies expect to reap IoT benefits two years after implementation

Concept IoT ROI
Sheila Zabeu -

August 18, 2023

Companies continue to invest more in Internet of Things (IoT) solutions and 95 per cent expect to see measurable benefits within two years, according to respondents to Omdia’s latest survey.

Omdia notes that the survey results suggest very positive growth in the deployment of IoT solutions and that there will be a positive knock-on effect for members of the entire IoT value chain. There will also be more competition. Companies are increasingly looking for suppliers and partners to help them deploy IoT solutions that are more complex and therefore require more skills to be successful. Many companies interviewed cited the lack of relevant internal resources and skills as a major obstacle.

“Our research suggests that there are many opportunities ranging from hardware and software to connectivity and services. However, security remains at the top of companies’ concerns, and suppliers must be able to not only offer secure products and services, but also integrate them effectively into wider solutions. Those who can’t do this will be left out of this growing market,” says Andrew Brown, leader of Omdia’s IoT practice.

The results of the interviews also revealed that although LTE (4G) technologies are still a popular means of connectivity, more than 70 per cent of companies plan to adopt the new 5G version. In addition, eSIM/iSIM has already been or will be adopted by almost 90 per cent of companies over the next two years. According to the study, these technologies will make it possible to better manage costs and renegotiate future connectivity tariffs.

Cautions when implementing IoT

A recent article in  Forbes  listed various precautions that should be taken when designing and implementing an IoT project. Of course, security was singled out as extremely important and must be “ingrained” throughout the solution’s life cycle, right from the planning stage. However, there is much more to consider.

For example, right from the planning stage too, you need to define clear and precise business goals to be achieved. It could be in a concise sentence like “with IoT sensors, we want to collect production data and analyse it in order to increase operational efficiency by 20% and reduce downtime by 15% over the next two years”.

Another recommendation for successful IoT projects is to adopt a holistic approach, integrating various departments within the company and relying on cross-functional teams, with members who may or may not have a direct interface with IoT systems. It’s ideal to let everyone know that IoT can help operations and simplify them for different types of professionals.

Before putting the implementation into practice, it is highly recommended to make a thorough assessment of the current infrastructure that will be used for the IoT solution, considering the capacity of networks, both present and future, and other important requirements such as electrical resources and physical facilities, while also thinking about how the IoT solution will integrate with legacy systems.

Another concern has to do with the large volume of data that will be generated by IoT sensors and devices. Consider answering questions such as “is there enough storage capacity?”; “are there adequate systems in place to analyze the data and generate valuable insights for the business?”; “can I easily combine it with other data, for example from suppliers in the supply chain?”; among others.

Don’t forget the management of the IoT solution and how to have easy ways to extend it, should the need arise. Comprehensive IoT lifecycle management is essential to maintain long-term returns on investment based on a dynamic, adaptable solution with the capacity to evolve over time.

And as in many other parts of life, always rely on good partners. IoT is not a single, solid block, but the combination of various hardware, software, networking, security and other technologies. That’s why you should work with an ecosystem of qualified partners capable of designate the various IoT pieces and working as a team.