Companies that realize it is imperative to connect their products and devices will enjoy a clear competitive advantage. Yet those that focus only on the technological aspects of a project have already lost the race. When it comes to the IoT, companies that devote their full attention to customer benefits are the most likely to enjoy long-term success. But how to start your IoT project?
1. Thoroughly plan the initial investment
From a financial perspective, the first step is the biggest: hardware and connectivity cost large sums of money.
2. Keep in mind that there are costs throughout the entire life cycle
Don’t forget to consider the operating costs of each product or device that will be connected to the cloud for its entire service life.
3. Make sure to choose a strong business model
It can be easy to optimize maintenance and improve products, but calculating ROI is more challenging. The added value of your business model might not cover the initial connectivity and ongoing operating costs.
4. Understand that at a certain level, your whole company needs to digitally transform itself
If a manufacturer is to thrive in providing digital services for all its stakeholders, the entire company must undergo a digital transformation and everybody must embrace a new mindset. This includes new capabilities, new skill sets, and an open marketing approach with the corresponding expertise. The company will then be able to work on new channels, position its products and services, and grow communities. From an organizational standpoint, it is necessary to revisit and revise processes before implementing and firmly establishing them.
5. Properly manage your IoT ecosystem
Companies choosing an open-platform approach for their IoT project should handle ecosystems and platforms in a way that ensures they are and remain appealing to partners and third-party providers. They should also intentionally relinquish a certain degree of control – this is essential if an ecosystem is to blossom and address demand more precisely. Adopting a balanced API usage model is another way to ensure that a company’s ecosystem flourishes.
We have carried out many IoT projects with our customers, which has allowed us to identify recurring patterns of added value. In turn, we have used these patterns to create a model of five maturity levels. By examining customer projects and customer solutions, this model illustrates how you can add value at each level.
Read our white paper to find out how to add value at every level of IoT maturity.