The use of the internet of things in business has evolved quickly: After seeing the cost savings that come from implementing IoT tech to improve operational efficiencies, companies' IoT investments are getting more ambitious. Now, businesses are looking for ways to take the next logical step: developing ways to make money with IoT.
A 2016 report commissioned by Verizon and researched by Oxford Economics found that revenue growth was the biggest factor driving IoT adoption, and 72% of organizations reported that IoT is critical to creating a competitive advantage. Companies have learned how IoT improves processes and efficiency -- resulting in cost savings that can have a significant positive influence on the bottom line. Now, tech leaders are seeking new ways that IoT capabilities can drive revenue. For example, companies are using the internet of things to personalize customer experiences to differentiate themselves from competitors. Businesses are also seeking ways to tap into the treasure trove of valuable data analytics information made available by innovative IoT business models.
Of course, there are obstacles to making the business case for IoT. The technology is still new, and companies will have to develop policies and processes to govern IoT data. And in order for IoT to deliver a return on investment, CIOs and other IT leaders must understand how to use all the multiple technologies that work together in the IoT network. Customer privacy regarding personal data transmitted via the internet of things is another issue, as is data security.
In this SearchCIO handbook, CIOs and other IT professionals talk about their experiences with implementing IoT business models. We hope it helps you decide whether your organization is ready to move beyond IoT's cost savings benefits and into the next phase of the IoT business model: using it to actually make money.