Predicting the IoT

There is an obsessive focus on predicting the size and value of the Internet of Things. Numbers are tossed around like surveys from the Presidential race: Over the next five years 50 billion sensors will be out in the world or maybe it’s 20 billion, no 10 billion, no, no no…..200 billion is correct. Economic impact worldwide (or is it revenue…or…?) will be $20 trillion (a really, really, really, really big number that are brains are challenged to understand) or is it $5 trillion, no $10 trillion…$30 trillion?  

This fixation with make believe numbers represents the fact that few people really understand the IoT and are challenged to contribute anything meaningful to the discussion about this rapidly developing ecosystem. As we see in politics, when you have nothing to say you take a survey or make predictions!

The IoT, What’s That?

So why are so many challenged to understand the IoT? 

The answer is almost too simple: The IoT is enormous!  Consider this: the IoT represents nearly unlimited potential encompassing everyone on the planet from consumers, across all industries and businesses while spanning the globe from Santa Monica, California to Bangalore, India, from Tiverton, UK all the way down to beautiful Sydney, Australia (any other city want to pay me to plug them in my blog posts?) It’s so big I only refer to it as an ecosystem not an industry. 

The only true limiting factor in how you can apply the IoT to a company or organization is the imagination! OK, money can be another limiting factor, but in the end you can find more money but you CANNOT find more imagination!! Take my word on this last comment….just try and write a blog post and see what I mean!

According to Dictionary.com an ecosystem is: “a system, or a group of interconnected elements, formed by the interaction of a community of organisms with their environment.” Also, “ any system or network of interconnecting and interacting parts, as in a business.”  That’s the definition of the IoT! 

So you have a system of interconnecting and interacting parts that can do just about anything you want them to do. Only problem is you have to figure out what it is you want them to do. The IoT will drive a level of innovation not seen since the industrial revolution of the 19th century. Not even the start of the Internet revolution will compare to what’s developing out of the IoT! With such levels of innovation how do you first figure out where to start and evolve that into the implementation of IoT solutions that will benefit your company or organization? 

The IoT Does Not Come in a Box

Many of the early adopters of the IoT started out with the “do-it-yourself” mindset. They’ve done so well implementing other technologies in their organizations organically; this IoT thing should be easy. For most that tried the do-it-yourself method they have found out that the number one barrier to success with this method was overlooking how really complex it is to implement a fully connected operation. Most ended up challenged to find partners who could fill in the gaps and help bring about success with their IoT efforts. 

When you are dealing with deploying sensors, insuring they communicate correctly and cost effectively over a network (cellular, LPWAN, WiFi, etc.) and insuring there is correct back end software that drives useful analytics in real time, complexity is an issue. Remember my comment: The IoT is enormous! But it’s not just enormous in it’s applicability around the globe. It’s enormous in the potential number of ways it could benefit your operations with each potential solution having it’s own set of criteria for development and deployment. This is so not a buy it, plug it in and run an install program type solution! 

…and the Survey Says…

So how do things look at other companies right now?

According to a survey shared recently on an #IoTJourney webinar, of the companies responding to the question “What phase of the IoT journey is your company in?”, 60% said they were in the “investigation” stage, 27% were in “development” and 9.4% were “connected” in some way to the IoT. 

What I have found in working with companies at The IoT Strategist, many of those 60% who are in “development” consider development to be internal discussions about the IoT and assigning someone to “look into this IoT thing a bit more”. “Development” on the other hand is represented at some companies by “looking into it” where others are actually working to develop and deploy real IoT solutions. Those that are actually “connected” means having a NEST thermostat installed at some companies while others have deployed full remote applications that are delivering real analytics that are rapidly changing their business models.

For the most part, those 60% know little to nothing about the IoT while the 27% who are developing are most likely in some form of investigation stage. The IoT Strategist provides guidance to companies looking to understand and benefit from the IoT, we are not a survey company. So my interactions with people and companies are more personal and direct. From those interactions I can tell you a large percentage of people who are investigating the IoT are really clueless about it with others not even sure what the acronym “IoT” even means. 

Driving Success with the IoT

The key to success with the IoT starts with understanding then delving into how it applies and will drive positive change within ones own circumstance. Of course understanding that your competition may already be ahead of the curve with the IoT is usually enough impetus to get started. Talk about how evolution will weed out the weaker species. Watch what will happen to companies if they don’t evolve with the IoT ecosystem while the competitors do!

You can take solace in the fact that the majority of companies and organizations around the world have, as yet, not taken any meaningful steps towards figuring out how “this IoT thing” can benefit them.  But that is also a poor excuse for not stepping up and getting started. The IoT is not a survey or a number; it’s a real ecosystem with applications and systems being deployed everyday around the world. Real companies are seeing extraordinary results and evolving their business models in amazing ways. 

What the successful have discovered is that working through the IoT process requires a dedicated effort along with carefully selected partners to make it happen. Today is when you should begin your process. Seek out highly qualified help to get you started and guide your efforts in an efficient and effective manner. Stay involved, be direct and ask a lot of questions. Key to success is working with your partners so they are immersed in your business so they fully understand how you operate, cost structure, what drives profits, history and culture.  

The IoT can deliver new efficiencies, cost savings, greater profits, new revenue sources and entirely new ways of doing business. Always remember this is innovation at its finest hour. You must keep an open mind as to the changes this will require. Radical change is possible. Where a product company yesterday, a service company tomorrow you could be!  Be patient! In the end, the results will be extraordinary!