Innovation in the IoT applications and tools to get started
The Internet of Things is growing exponentially. According to some major some studies, the number of connected objects is expected to reach 50 billion by 2020 and even 500 billion by 2030. The wave to transform ‘dumb’ products into ‘smart, connected’ objects results in businesses to increase their drive to innovation and generate new revenue streams. From creating new services, optimizing business performance, creating new business models, improving quality of service and unlocking new services, companies have to investigate how their business can capture the value of the Internet of Things.
So what is limiting you in successful innovating the IoT landscape?
How to create new business models and new services?
With IoT technology, new revenue streams can be created by innovative business models. Smart, connected devices allow organizations to switch to product-as-a-service models due the ability of the products to know all details on product usage whether measured with sensors or integrated in the software. For example, insurers can provide clients with even more personalized pricing models due to connected cars that track the driving behavior.
End users will finally get the true value-potential through some drivers:
- Personalization to better meet customers high & diversified demands. Everybody wants individual treatment or services. Hence products should either be configured to better adapt to this requirement or should learn it by themselves.
- Renting is the new buying. When product features need to adapt themselves to the human desire for finding clever solutions for its challenges, whether business or private, IoT product designers should take into account that the services are only required from time to time. Hence the user will not be willing to buy physical products.
To some extent, these might conflict with the choices to be made and hence a more strategic focus is required.
- Either one focusses on the improved and personalized experiences for the individual or one focusses on new behavior of specific groups – social.
- Otherwise, one might be confronted with selecting between renting and pay-as-you-use versus a more traditional buying the products.
Looking for compelling features and functions that address specific goals of each quadrant – as you can see in the canvas below – will help you in communicating your product strategy more clearly to the target group.
In shops, consumers will benefit from improved shopping experiences due to interactions (product customization) with the product and with the point of sale or they might benefit from a personalized service such as real time product advice from peers, transport & logistical services, real time product price comparison, promotions or loyalty credits.
Enhance operational efficiency to increase customer value
The Internet of Things is increasing the performance levels of operational effectiveness. Data collected from smart, connected objects is the new gold for businesses and can be used to analyze the efficiency of internal processes in order to meet higher productivity objectives and reduce operational costs. Inventory management and logistics can be improved through real-time tracking of products in sectors like healthcare, retail and manufacturing.
Gartner predicts that by 2017, 20% of all market leaders will lose their number one position to a company founded after the year 2000 because of a lack of digital business advantage.
The real value will be unlocked when big data algorithms will be capable to recommend operational improvements or even predict flaws in the process. Predicting these flaws will require machine learning tools to inform about specifics in the process, adverse event detection or detecting slow negative trends in efficiencies. On the other side, machine reasoning will bring the ability to apply logic to act, to provide information that was not asked for but seen as useful for human decision taken. Available technology is currently exploding so making an inventory of and selecting the appropriate technologies are the new challenges.
Verhaerts technology scouting tools & methods are structured processes, proven by ESA Techtransfer. An example of a technology trend take-off is visualized in the picture below.
Machine learning might assist people or even act upon in the process to prevent downtime or manufacturing process wear. Hence customers and end users benefit from increased quality of services and improved products.
Building a future scenario on how IoT can improve your operational effectiveness can be done by combining machine learning and reasoning technologies.
- Scouting technologies to make an inventory of your possibilities is a first step.
- Mapping them to understand their applicability to your problem and how they will generate value is the next step.
A canvas like novelty, investment and do-ability tools – presented below – will bring a concrete method to select your future operational effectiveness programs.
At Verhaert we provide independent expert advice to allow you to make an inventory of possibilities and map these opportunities you may know or not yet know. Our consultants will help you in bringing together the different elements that need to be taken into account before starting an IoT project (technology & opportunity scouting, selection of business concepts & technologies, mapping potential business/service models, tools on how to build an ecosystem, etc.). We guide you in making the business and technical decisions with a value driven and user centric approach meeting your objectives.
After that, a four step approach is required to successfully implement your IoT project:
- The first step is to transform your devices into smart, connected devices that start to communicate their data.
- The second step starts once this data is sent and when you need to gather, store and process the data, using either cloud-based or application enablement platforms.
- Thirdly, data visualization comes in so you’ll need to view and manipulate relevant data on web interfaces, dashboards or applications.
- Last, you can add data analytics to build a smarter system and to increase the value you bring towards customers & end users.
Such stepped approach is not only performed at the data level, but on the other elements – ICT, business model, physical object, ecosystem and service model – which are a necessary part of our IoT concept we prepare for you. We believe that combining the business aspects with technical insights from a user centric approach, not only increases the success rate of your innovation process but also the value of it.
VERHAERT guides you throughout these steps with our tailor-made services, adapted to your needs. We cover the whole process starting from the front-end of innovation, new product development and launch of the project.