Consumer devices like smart watches and automated home thermostats have created a big buzz for Internet of Things (IoT) technology. But more businesses can gain a greater Return On Investment (ROI) out of IoT if they look at machines talking to machines or M2M communications. In fact, the McKinsey Global Institutes 2015 report The Internet of Things: Mapping the Value Beyond the Hype, estimates that B2B users can tap 70% of potential value in IoT. B2B applications with IoT connections can streamline processes and analyze Big Data far beyond the scope of consumer apps.
Increasing revenue or reducing costs for the organization should be the goal of any IoT or M2M application, and thats how you can make a business case for proceeding with an IoT project in your organization. As Aeris CTO, Ive seen how IoT and M2M deployments can bring this kind of value to large-scale B2B applications.
For example, the 500,000 long-haul trucks on the Aeris network use customized M2M fleet telemetric solutions to enhance delivery performance, increase service radius, reduce payroll, and cut down on truck idle times. In the utility market, smart meters delivering automated readings over IoT and M2M networks like the one Aeris provides could save an estimated $20 billion worldwide by 2020, versus manual meter readings. These automated meter readings are also more accurate, resulting in fewer billing inquiries and improved customer care.
Increased Efficiency With IoT and M2M Solutions
One of the most obvious and powerful applications of IoT and M2M solutions is to increase business efficiency, which, in turn saves money. Connected devices and data can help an organization predict necessary maintenance, analyze usage patterns, streamline workflows, automate manufacturing, and more.
In Santa Fe, New Mexico, Badger Meter has deployed its water-management system to read thousands of meters remotely over Aeris IoT and M2M network. These smart meters help Santa Fe identify potential leaks and better understand whats happening in its water system. Also, customers will have more control of their water usage, and they can adjust their consumption as needed, thereby reducing their costs. Smart meters connected via IoT and M2M networks can assist government and consumers use limited resources more efficiently, and Badger Meter is also working with municipalities in drought-stricken California to install similar systems.
Who doesnt want to reduce costs? If a business lowers operating costs through successful IoT and M2M implementations, this can be passed on to customers, making prices more competitive. For example, by switching to Aeris M2M cellular network services over a less-efficient wired system, SimplyHome lowered operational costs and reduced installation time for its assisted-living technology from two hours to two minutes. The business was able to give customers an average savings of $50 to $70 per month.
Getting a Return on Your IoT Investment
When you do the ROI analysis up front, you can build a business case for an IoT and M2M project based on improving efficiencies or reducing costs. The Internet of Things may seem like its about the latest technology trends, but that wont benefit business in the long run. Successful organizations need to find concrete ways to streamline processes, reduce costs, use data more effectively, and increase profits overall through using IoT and M2M systems.
Still not convinced? See how300 enterprise-IT decision makers from the USand the UKresponded in our survey on the vaule of their IoT investments.