The Internet of Things (IoT) is about the creation and collection of sensory data. As our lives become increasingly monitored through the seemingly universal spread of technology, businesses are now asking how they can best make use of the detailed and diverse data that this is producing. These questions are asked with one key end goal in mind; profit.
By 2020, it is predicted that there will be around 50 billion IoT connected devices, creating upwards of £237 billion in incremental revenue opportunities for IoT suppliers. Initial progress in IoT technology and applications have been seen in relation to diagnosis, allowing technologies to communicate and schedule their own maintenance, or rapidly alert technicians of malfunctions. IoT has also been utilized to allow retailers to remotely monitor the temperature of perishable goods in stores, helping to reduce spoilage and the costs related to unnecessary produce loss.
It is clear that improvements in the sophistication of IoT and connected technologies has driven this rapid growth of uptake throughout differing operational sectors. New and innovative uses are constantly being found for the IoT, helping drive this rapid progression.
In line with this growth, businesses and investors are now exploring how the IoT can be best utilized and developed for financial gain. In a recent study of IoT professionals, conducted by Canonical, more than half of respondents stated that quantifying return on investments (ROI) was their most significant challenge in relation to IoT, ahead of both device security (45%) and infrastructure deficiencies (40%).
It is clear from this that IoT professionals are aware of the growing importance that IoT will play throughout a variety of commercial and industrial sectors. The question that remains, however, is how can they best make use of this?
A key driver behind the rapid advancement of IoT technologies is the fact that businesses are more aware of the ways in which the IoT can be monetized. Historically, organizations have focused their economic development plans on device and hardware sales related to the enabling IoT connectivity. Now, however, a new branch of innovators are exploring the financial avenues related to IoT software and data stores. From this, there is a growing awareness that the companies who can develop the right ways to harness, analyze, and monetize IoT data, will be the true ‘winners’ moving forwards.
This broadening of financial revenues in relation to the IoT has created further opportunities and challenges for organizations moving forward. Companies can no longer expect that putting a sensor on every single bit of technology will be a lucrative and secure revenue stream. Of course, organizations operating within these fields are likely to see increased sales in line with the growing role and uptake of IoT technology throughout society, but this isn’t the only option.
Those companies that can think more broadly about the IoT, and engage with new uses for data in our increasingly monitored world, will be able to truly access the huge value potential of the IoT. From new business process to new data driven finance streams, the companies that are willing to innovative and diversify in relation to IoT systems and technology, will lead the IoT ‘gold-rush’.
At Sinclair Fox, we have developed a wide range of skills and contacts in relation to the development of IoT systems throughout a variety of operational sectors. We are successfully helping clients to attract and develop leaders who will support them in addressing key industry functions. Such functions include:
Consumer Lifestyle Innovation
To find out more about our work with IoT, and the services we offer, click here of follow the link below