The challenges for IoT Take-off
Proud of building the foundation of a future discipline that will encompass multiple new activities. IoT will be multiple activity areas. Health IoT, Smart cities, Industry 4.0,…
To talk in a generic way about IoT have some risks, in any case we can consider that the market is slowly advancing in a pilot approach. I will conduct an analysis about the reasons about why there are no yet major deployments
For the analysis we have to understand the cost of the IoT components. If we take above figures as valid, around 40% of the cost of an IoT solution is coming from application development, another 40% from Device hardware and the 20% left is coming from System integration, data storage, security and connectivity. Two main cost components are those of platform, big data, machine learning and devices manufacturing.
If we narrow the analysis about the device cost, we find that in an Accenture survey, 62% of internet users consider that the main barrier to buy IoT is that the device cost is too expensive.
This is clear, it could not be that the 50% of the IoT solution cost is generated by the hardware, but what is most definitive is that it is not still clear how the additional information that the devices will provide will create new business lines in our company or how it is going to make more effective the existing ones.
Another element to consider is the need of integration between the different IoT components, Hardware, connectivity, platform and Big data with Artificial intelligence.
As long as the market matures those elements will be integrated and will form different type of solution which impact in the organization efficiency could be easily measured.
The cost / benefit analysis is the final and definitive element that need to be clearly state to ensure a proper and timely IoT acquisition decision. This element is clearly reflect in the below graph that identifies the business unit, and not IT as traditional decision maker for technology, as the main leader to decide the IoT initiatives.
As a summary of this analysis it can be stated that:
Device cost should lower
The components of the different layer should be packaged to ease the customer acquisition
It have to be defined very clearly the ROI analysis
