4 Tips to Develop the Right IoT Mindset
The Internet of Things (IoT) is and will be a game-changer in our lives. From consumer products to industrial solutions, the successful applications of IoT offer better customer insights and experiences, eliminate waste, improve productivity, reduce cost, and give rise to new business models that could change the competition dynamics dramatically.
Before moving any further on the topic, it is always good to remind ourselves of what the current state and the future prospect of IoT briefly. Here are just a few figures: Around 8.4 billion connected “things” are on the market currently (Gartner, 2017). Rolls-Royce uses IoT to increase the fuel efficiency of jet engines and improve maintenance. In this way, the company saves $250K per plane per year for each 1% reduction in fuel usage. Royal Dutch Shell realized a $1M return on a $87K investment in a remote IoT-based asset monitoring and maintenance application for oil fields (Capgemini, 2018). More examples can be found in successful IoT solutions of General Electric, Cisco, Intel, IBM, Amazon, and Microsoft etc. Basically, many businesses already started to exploit the benefits of IoT. How about the future potential?
It is predicted that there will be more than 25 billion devices connected to a network by 2020, mostly machines like trucks, engines, solar panels, and so on (Cisco, 2011; Gartner, 2013). The total economic impact of IoT applications could range from $3.9 trillion to $11.1 trillion per year in 2025 depending on IoT adoption rates, economic trends, and the evolution of technology over the years (McKinsey Global Institute, 2015). In short, trillions of dollar revenue opportunity will be available in IoT ecosystem including billions of connected devices, applications, services, and intelligent systems.
However, even though adoption rates of IoT continues to rise, as businesses benefit from the innovation it brings, we are still far away from the desired point. For instance, we predict only less than 10% of the devices are actually connected to a network on the manufacturing floor today. Moreover, the Cisco survey (Cisco, 2017) reveals close to three-fourths of IoT projects are failing. The detailed reasons behind these are various and will be subject to another article. But, developing the right mindset helps to remove or at least reduce risks, and allow you to make a greater impact on your IoT initiatives.
In this article, I introduce 4 tips to develop the right IoT mindset based on my hands-on experience.
1) Focus on Customer
I am sure most of you are tired of hearing these words; customer-first, customer-centric, etc. Maybe this is because people tend to use them as PR slogans rather than a leadership principle. The true value of IoT is in creating new experiences, improving processes, products, and services to build long-term success and customer trust. If you are looking for short-term profits by ignoring customer experiences, I can assure you that the IoT won’t get you anywhere. You must design and develop solutions without losing sight of the customer. Discover what your customers really want, and which issues they really care about. This will help you to provide better digital experiences that are tailored to their needs.
2) Think Big, Start Small
The imagination is limitless, but resources are not. IoT refers to an emerging area with tremendous promise and significant challenges as well. In other words, so many opportunities are available to utilise your creativity. At the same time, there are pitfalls of going into a digital transformation effort. Think big and differently to comprehend from the tiniest detail to the big picture, but start small by addressing the most urgent needs of your customers and expand incrementally as new requirements emerge. This approach will not only help you reduce time to market and get quick customer feedback, but also allow you to keep the project manageable and scale failure.
3) Use Existing Capabilities
Existing capabilities can be used to contribute to the successful development of IoT solutions. Rather than reinventing the wheel from day one, find out what already exists. The current capabilities can be in the form of technology, application, or human resource, doesn’t matter! Consider how they can be utilised as much as possible and clearly aligned to the intended purpose. Then, add new technologies and expertise to complement existing skills and resources. Thus, you can decrease costs, simplify complexity, and limit resistance to change.
4) Learn Continuously
In the beginning of your IoT journey, it is likely to have so many unknowns. As Rumi said, “As you start to walk on the way, the way appears”. Do not be afraid of it, instead, embrace the opportunities that the unknown may present. Use the freedom it provides to explore new paths on the way. Be open to new practices and making mistakes while experimenting with new approaches as long as you learn from them. Do not let your current knowledge and skills limit your IoT-enabled solution. Bear in mind, there might be a better way to help customers accomplish their desired outcomes.
Conclusion
The IoT provides a unique opportunity to enhance several aspects of everyday life by linking physical entities and the real life. The key to doing this successfully is developing the right mindset as a starting point. My experiences taught me that it is not how big an opportunity or problem is that matters, but how you approach it. Try to use the four tips given above and feel free to share your comments below!
Note: As always, if you have any further questions, do not hesitate to reach out! You can also follow my latest thoughts and updates on @KahveciSinan.
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References:
Capgemini. (2018). Unlocking the business value of IoT in operations. Capgemini SE.
Cisco IBSG. (2011). The Internet of Things: How the Next Evolution of the Internet Is Changing Everything. Cisco Internet Business Solutions Group.
Cisco. (2017). Cisco Survey Reveals Close to Three-Fourths of IoT Projects Are Failing. [Online]. (https://newsroom.cisco.com/press-release-content?articleId=1847422)
Gartner Inc. (2013). Gartner Says the Internet of Things Installed Base Will Grow to 26 Billion Units By 2020. [Online]. (https://www.gartner.com/newsroom/id/2636073).
Gartner Inc. (2017). Gartner Says 8.4 Billion Connected “Things” Will Be in Use in 2017, Up 31 Percent From 2016. [Online]. (https://www.gartner.com/en/newsroom/press-releases/2017-02-07-gartner-says-8-billion-connected-things-will-be-in-use-in-2017-up-31-percent-from-2016).
McKinsey. (2015). Unlocking the potential of the Internet of Things. McKinsey Global Institute.
