Today’s advancing technologies are disrupting businesses across industries. Among these is the Internet of Things (IoT), which is expected to grow at a 33.3% compound annual growth rate over the next five years which represents an IoT opportunity of $661.74 billion.
Over the years, IoT innovation has seen steady growth. But, 2016 has been marked a tipping point for IoT that will see today’s 6.4 billion connected things jump to reach a tally closer to 21 billion by 2020.
This boost in connectivity will likely be spurred by consumers as they demand the benefit and convenience offered by the connected world. In turn, businesses will need to respond by offering connected services and applications to their customers as well as their employees. But, this can be easier said than done.
With a host of new technologies – data and analytics, artificial intelligence, virtual reality – in addition to IoT, business leaders are weighing the investment risks and benefits of the IoT opportunity. There are also operational and talent considerations – how will these technologies integrate with each other and other legacy systems and what capabilities the business now needs to best leverage these technologies?
Each one requires careful consideration. Yet, to fully take advantage of the opportunities IoT offers, companies need to consider what they need to do and who they need to work with to successful adopt IoT into their business.
Partner with entrepreneurs
Initially, the rise of IoT and other disruptive technologies seemed to have been at odds with traditional industries. That’s no longer the case and big business and startups have come to see how they can help each other.
Big business has the investment dollars startups need, and entrepreneurs have the innovative products or solutions companies need. The effect is a working partnership that is proving to be not only benefit the individual parties, but also the customers they aim to serve.
Better use of IoT data
The very essence of IoT is the ability to transmit data in real time. So before companies can incorporate IoT strategy into their businesses, they need to adopt more effective behaviors in harnessing the data they already collect. This requires that they identify what data is coming into the business, how they can optimally streamline the incoming of data so as to translate it into consumable and actionable information, and how to utilize the data in a way that will bring the best benefits.
Once a company is ready to bring IoT into their businesses, they will need to determine who will help them do so. For many businesses it is no longer strategically sound to simply rely on internal capabilities. Instead, they have to bring in external experts who have the knowledge and experience to help make decisions that will not only bring the very best IoT software, hardware and applications into the business, but determines how best to integrate an horizontal platform into the company’s current structures and systems.