Internet of Things: Successful implementation is king

IoT - Internet of Things. Billions of sensors network billions of things globally. As a digital data aggregator, this principle not only promises higher efficiency, but also enables smart digital products and innovative, data-oriented disruptive business models. So is IoT the disruptive panacea par excellence that will make everything work in the future? After all, the analysts have been outdoing each other in their analyses for some time now in terms of market potential: for example, global investment in IoT-based products and services is expected to exceed 250 billion US dollars as early as 2021. Euphoria everywhere, then? Not quite - because there are also increasing signs that the promising and versatile potential that IoT promises can only be realized if the available new technologies are used in a targeted and professional manner.

More than just proof of concepts: 5 golden rules for successful IoT projects

According to a study by the London-based market research institute Ovum, many IoT projects - over 80 percent to be precise - are not yet making it into regular commercial operation. An IDG study confirms that the number of failed projects is increasing. And Cisco explains that 60 percent of IoT initiatives remain at the level of a proof of concept. End of the hypes? Quite clearly: no! The Internet of Things is the future and will revolutionize virtually every industry in many areas, as well as global market growth continues to grow exponentially. One thing, however, should be clear to every company that wants to make itself fit for the future with the help of IoT projects: The successful implementation of an IoT strategy is definitely not a "self-runner". In this context, the consulting firm TCS (Tata Consultancy Services) has analyzed a large number of international IoT projects for a recent study. Five important factors were identified that determine whether an IoT project is successful or not.

1. Develop and use new business models

A decisive factor: companies that align their strategy to IoT technologies better than their competitors and develop business models and product offerings tailored to these technologies are more successful. An important basis for this is the comprehensive analysis of IoT-related data to find out what users' experiences with products and services are. In this way, companies can determine, for example, whether and in what areas their customers need support or what additional features the products should offer. The evaluation of the qualitative data also allows conclusions to be drawn about the segmentation of the customer base. On this basis, companies can then better tailor their offerings to existing and new target groups, optimize them and develop new services.

2. Define suitable data basis for the analysis

The agony of choice: Because a lack of data is not really the problem in the Internet of Things. What is decisive is the right selection: namely to identify exactly the data that is relevant and valuable for a company's IoT project. One example: to optimize customer service, it makes the most sense to collect information about users' experiences with the relevant services. In addition, data on product quality and information on the way customers use certain products should be evaluated.

3. Progressive corporate culture: Questioning existing patterns of thought and action

A corporate culture that is not afraid of change will significantly accelerate the success of IoT projects. This is because it creates the right mood when implementing IoT initiatives: All employees should really be prepared to question, check and, if necessary, change their view of customers, products and business processes. After all, it is not unusual for the information collected by the IoT components to create a picture of reality that has little to do with what product and marketing managers have previously thought about. Therefore, all employees should be prepared to adapt core elements of their previous thinking: Business decisions, product strategies, customer approaches, etc. Such a continuous "Culture of Change" fits perfectly with the disruptive character of the Internet of Things. After all, the entire market environment will retain its highly dynamic character in the future: Complex and lengthy selection processes tend to be a hindrance when implementing IoT solutions. Nor will there be an "IoT solution for eternity" - instead, processes, market conditions and technological developments will continue to evolve. Anyone who is prepared to adapt quickly to this will be able to make the best use of its potential.

4. Build up your own IoT know-how

Building up your own know-how potential in the field of IoT technology is almost essential. But don't worry, not all areas need to be covered in-house: Rather, it makes more sense to be well versed in some of the technologies in the Internet of Things environment, such as big data, analytics and cloud computing. External service providers contribute the missing part of knowledge and solutions. The implementation and management of an IoT environment is also often a matter for external service providers: as IoT specialists, they already have IoT frameworks and telematics solutions that can be adapted to a wide range of deployment scenarios. Ideally, the final adaptation of core processes and the development of new products and services based on the IoT project will then be implemented back at the company.

5. Integrate IoT data into enterprise systems & embrace digital change

Another basic prerequisite for the success of an IoT project: the investments made only pay off if the implemented IoT environment can be coupled with the in-house IT systems. Only then can the company's decision-makers be sure that the information and data generated is valid enough to be used as a basis for adapting business strategies and processes. In this way, the Internet of Things will increasingly develop from hype to new normality in many industries in the future. The digital change means that many companies will have to bid farewell to traditional business models and processes. Which is definitely positive: only in this way will companies accept the opportunity to break new ground with IoT projects. And to find exactly those solutions that will enable them to meet the challenges of the age of globalization.