The Internet of Things, if implemented successfully, can be the most impactful endeavor that an organization can undertake. However, 8 out of 10 IoT projects fail even before they are launched, according to Ganesh Ramamoorthy, Managing VP, Gartner. Out of the multiple reasons he quotes, the primary reason for this premature failure is that organizations fail to examine their own business processes to identify challenges that are unique to their mode of business. It is imperative for organizations to identify the most relevant benefits of IoT for business, before contemplating any future steps.

Benefits of IoT for business

The most significant IoT benefits that a majority of organizations can align with their business strategy are:

• Enhance operational performance: Any business process connected to IoT will, due to its interconnectivity and intelligent decision-making capability, be more productive and efficient. The impact of this benefit is usually more significant in the physical goods manufacturing and moving industries. For instance, a logistics company may collect real time traffic data and positioning of its vehicles using GPS, to find the most optimal route to the destination, saving time and fuel. This company can also, by simultaneously tracking all the incoming packages, easily schedule routes to ensure minimum distance travelled and time taken.

• Maximize equipment utilization: Utilization is the ratio of the revenue actually earned by a piece of equipment to the revenue it can potentially earn. Effective asset management using IoT-enabled tracking and analysis can ensure that any equipment delivers full value for the cost of its purchase by effectively scheduling its usage to reduce idle time. Another example of effective asset management is an IoT-enabled maintenance system that reduces downtime by predicting a potential equipment failure by identifying early signs of breakdown and prompting repair.

• Improve service quality: In the service sector, customer experience is a major determinant of quality. Incorporating IoT in the service delivery model will enhance customer experience and streamline the interaction between the business and customer. Hotels and other hospitality establishments use IoT-enabled check-in facility for guests and suggest activities to do andplaces to dine at based on the location data. They can also use AI virtual assistants to give customers a personalized staying experience and improve service value.

• Increase customer engagement: Increasing customer engagement by providing products that interact with IoT, such as Fitbit, increases the perceived value of the products and increases preference for other compatible products. The data collected from these devices is also useful for carrying out targeted marketing campaigns that increase the likelihood of customers buying them. Increasing engagement can also be beneficial in healthcare, where tracking a patient’s health parameters may help in effective diagnosis of ailments, which may not be detected through a one-time checkup otherwise.

• Optimize resource management: Supply and demand data collected and analyzed in real-time can provide useful insights to decision-makers to manage manufacturing or service delivery capacities. A supply chain connected to an IoT network allows transparency between the participating businesses, that have access to real-time market data as well as production data from the other businesses. This data can be used to inform purchase and to guide the decisions of the participating organizations.

What are your IoT benefits?

All these benefits are, directly or indirectly, linked to the two primary business objectives – maximizing revenue and minimizing costs. However, sometimes, depending on the nature of the business, certain benefits may lean more towards one than the other. It is up to the leaders to determine what benefits would most congruously align with the business’s strategic vision. Planning without a clear IoT purpose and vision, may otherwise lead to less than results.

The benefits that are thus identified should be prioritized for development through IoT deployment. So, have you already identified the IoT benefits that apply to your organization? If yes, then next you need to choose an IoT provider who is right for you.