July 25, 2016 - The numbers are staggering, and it’s all melding together.
By 2020 there will be 44 Trillion gigabytes of data, that’s equal to the number of stars in the universe. Picture 1 trillion sensors contributing to the rise of data in 2020 and three trillion being invested in the IoT over the next 10 years.
And the trillion-dollar question is…what critical actions can you take to embrace the Internet of Things?
It’s been said, people who live in the worlds between business and technology are critical to IoT success.
First – Get involved
If you want to join that world, and grab your share of the $7.6 trillion pie, that’s the ROI of IoT in the next 10 years, first you just have to get involved. Don’t be intimidated by all the hype around this space. It’s a space with a lot of inflated expectations. As a result, you have many players and tons of progress happening virtually overnight. There’s over 78 IoT innovations on KickStarter, and most are around ‘personal’ things. We’re seeing businesses of all sizes starting to invest in the Internet of Things, as well as the makers, like those on KickStarter.
That’s because of the cost of storage, computation and sensors has dropped dramatically. We had the technology a decade ago to geek-out a tennis rack or golf club to get performance data in the hands of every athlete and coach, but it wasn’t cost effective to do so. Today Raspberry Pi, Arduino and other low cost microcomputers are enabling more and more of these types of IoT innovations. Those that really get it are using very similar technology and in some cases the exact same technology to innovate around ‘business’ things, smart parking meters, kiosks, vending machines and all those ‘consumer-facing’ things.
Once you’ve decided to get involved, now you have to transform.
Second- Organize around IoT and build partnerships
You have to organize around IoT and build the right set of responsibilities for your team, and establish the right partnerships with those active in this space. You want to find partners that are experienced in dealing with high transaction volume data coming in, so they can help solve for that 44 trillion gigabyte data challenge we face over the next five years. You need experts that can effectively operate at the edge, and enable smart devices to make decisions from data in real-time.
Think about the problems you are trying to solve for your business and what value that will bring to your customers.
Third- Start with the end in mind
Next, you have to understand the value proposition both for your business and for your customers. The industry is seeing lots of IoT solutions come to market and die quickly, because some don’t fully understand the Internet of Things and the true value it can deliver to the customer. What happens when any one of those ‘consumer-facing’ things shuts down, or is not predictive, or responsive to a changing customer dynamic? That leads to friction and bad customer experience. You really need to pay attention to the problem facing your business, and start with the end in mind, and then bring in the right partnerships to enable the technology. Partners who can deliver a proof of concept and rapidly deploy prototypes to address the problem, and reduce friction, delivering a better customer experience.
That’s how you can embrace IoT. Three simple steps: get involved, organize and build partnerships around IoT and start with the end in mind.