How to successfully transform into an IoT business
Sanjay Khatri, Cisco Jasper
Today, businesses around the world in industries as diverse as agriculture, healthcare, robotics, transportation, utilities and more are demonstrating that the Internet of Things (IoT) is more than just hype by putting connectivity at the heart of their business strategies, writes Sanjay Khatri, the head of global product marketing for IoT cloud at Cisco Jasper.
A common ingredient is their understanding that IoT is not about the “things” – it’s about providing real-time services. Specifically, it’s about transforming a business from selling discrete products and services to offering continuously and ubiquitously connected solutions. It can be complex and challenging, and if not done properly, your entire business case for connecting those products in the first place can fall apart.
Key IoT components
In order to be successful as an IoT business, companies need to consider the services they want to enable – those that will be the most meaningful and valuable to its customers and to its business. How will these services drive the business transformation that will unlock cost savings or generate new revenue streams? Once the services have been identified, the next step is to understand the critical components needed to deploy your IoT service. These components include:
- Devices – Embedded connectivity can turn virtually anything – a car, a robot, a vending machine, a security system, e-readers, pacemakers, beer kegs and more – into a smart device that can deliver additional value.
- Connectivity – Connecting devices to applications in the cloud from anywhere – locally and globally – is what enables them to become smart. While there are many connectivity options, businesses at the forefront of IoT adoption have found the simplicity and security of mobile networks a key reason to choose cellular connectivity for enterprise-grade IoT services.
- Applications – IoT applications vary widely depending on the device, industry and services you wish to deliver. These software applications utilise the data from your connected devices, and in conjunction with the rest of your corporate IT systems, make business decisions that impact the device behaviour or provide other upstream value to your overall business. The connected value can range from turning off a sprinkler when the soil reaches a certain saturation point to conserve water, to analysing driving behaviour to incentivise safer driving habits that save the consumer and the company money.
- IoT service platforms – An IoT service platform can provide the basis for a sustainable strategy for your business’ transformation into a digital economy. By taking the cost and complexity out of managing the always-on, anywhere communications with your remote products and assets, you get the foundation and the flexibility to derive the most value out of them.
Building your IoT strategy around these components is essential but not sufficient. Much of the digital transformation enabled by IoT relies on realigning your organisational approach as well.
Manage IoT complexity
There are six crucial capabilities to look for when evaluating any IoT services solution:
- Automation of the day-to-day tasks of maintaining your devices and integration into your core business processes
- Diagnostics for your connected devices in real time so you can rapidly and remotely respond to any issues.
- Self-service controls over connectivity to manage your bottom line by optimising network usage and costs to build predictability into expenditures and revenue.
- Actionable reporting that enables you to move beyond raw data collection and make informed decisions to improve performance.
- Scalability to expand your business and capitalise on new revenue opportunities on a global scale.
The light at the end of the IoT transformation tunnel
As companies evolve their connected devices and the services they deliver, an IoT service platform can simplify and automate many of the cross-functional processes needed to succeed. It can provide a holistic foundation on which businesses can build a sustainable IoT services strategy. Businesses setting out on the path of IoT transformation would be well advised to partner with an experienced IoT solution provider to help ensure the evolution is smooth and that ROI is optimized.