$1.7 Trillion, $745 Billion, $318 Billion! With market potential estimates as diverse as their scope of studies, Internet of Things (IoT) has emerged from being dismissed as a much-hyped pipe dream to be an inevitable future, although with challenges whose solutions encompass factors beyond technology. With a Gartner study projecting the number of connected devices to reach 25 billion globally by 2021, IoT has expanded outside of ‘home automation domain’, with realistic, disruptive and commercial applications across diverse industries.
Given the initial hype, promotion and confusion associated with any enabling technology, it is easy to over simplify the concept and perceive (and at times believe!) IoT to be merely about connecting devices and using sensors to collect data. While IoT currently ranks among the must-have priorities of a majority of organizations worldwide, market studies by technology majors such as CISCO have highlighted a significant failure rate (of above 60%) of IoT projects at ‘Proof-of-Concept’ stage.
With a critical need to maintain integrity and privacy of the data being generated, security remains a cornerstone of all IoT project implementations. However, a single point of focus on security often overlooks other essential elements for a successful implementation. A realistic and value-driven strategy, collaboration between IT and business leaders, a need to forge key partnerships towards ensuring a supportive ecosystem, enabling an inclusive, technology-focused and customer-centric culture, and a need to relook at talent strategy are equally important to ensure success.
Strategy is THE Essential Ingredient for Success
“A vision without a strategy remains an illusion”. The quote by Lee Bolman underscores the key reason for failure of IoT projects even at the proof-of-concept stage. Given the perception of IoT being the secret sauce to success in an increasingly convergent world of digital technologies, a majority of players are rushing in to adapt IoT into their organizational DNA, without really chalking out a robust strategy.
IoT implementation goes beyond merely connecting devices on Internet. A successful strategy starts with identifying the business need, determining what data needs to be collected, mapping the process of collection from edge and operationalizing it to enable real-time decisions, and how it will be used to meet the business need. A successful IoT strategy focuses on deriving the value (for customers and business) from the data being collected, while balancing the need for security and ease of use.