The artificial intelligence of things is spoken of these days in the field of internet of things; I will try to briefly share their common characteristics, their deseed points, my own opinions about why IoT projects are successful or unad made successful.
In our country, there are many incubation centers of the entrepreneurship ecosystem. One of the most well-known of these is at ITU Core Incubation Center; I try to mentor as much as I can from 5G and IoT. On this occasion, I see that I still have a lot to learn in the field of IoT; I also have the opportunity to observe how the domestic ecosystem sticks to traditional business models.
For this reason, I am aware that IoT technologies are not very well-off in terms of meeting expectations. As we mentioned in 5G Strategies, the perception that the locomotive of IoT projects is ‘Prestige’ is quite high.
In fact, when we look at the researches, it seems that this perception is not unad placeless. For example, one of his most up-to-date researches, Why IoT Projects Fail, Beecham Research, 2020 report; he’s sharing interesting statistics about it. Another interesting thing is that in the IoT platform world Gartner ranks high in the Magic Quadrum; Cumulocity IoT Platform provider software ag sponsored.
The most striking message of the table is that 58% of IoT Projects have failed; only 12% were found to be completely successful.
In our Covid-19 Impact Digital Transformation and IoT Investments article, I shared the stunning statistics in the GSMA report. One of the biggest challenges facing IoT projects, or iot projects; is employee resistance. This actually applies to both parties. Employee resistance on the supplier side is not able to accurately and effectively convey the value offer of the relevant application, and resistance on the customer side causes the projects to delay their implementation.
Why Invest in IoT and Digital Transformation?
The next generation of technologies are decisions made more cautiously than the usual technology investments of their investments. One of the main reasons for this is that technology as a new generation depends on the investment decision of the majorities of the previous generation. This is not the only reason, but it is one of the main reasons. In our digital transformation and IoT investments article, it was stated that IoT investments could not be made due to the 40% employee impact of the GSMA report.
So, what are the main reasons for IoT and Digital Transformation Investments?
We can collect the reasons for the investments in 3 main topics.
- Waste Savings – Efficiency-Oriented Investments
- Customer Res holding – Investments to Improve the Customer Experience
- New Revenue Channels – New Products and Services
Waste Savings – Efficiency-Oriented Investments
On the basis of these investments, increasing the efficiency of physical assets by digitizing them are investments. At its core, it is aimed at reducing the inefficiency of the business. In other words, I don’t know what you’re it is the saving of waste by controlling and controlling assets that are in the dark and cause high costs due to insufficient data sources.
The main examples of productivity-oriented IoT investments are; Vehicle tracking, asset tracking, machine tracking, energy consumption tracking, etc. are IoT projects.
Customer Res holding – Investments to Improve the Customer Experience
These investments are investments aiming to respond to the changing demands of your existing customer and to keep your customer in your hands. In this way, it provides new channels that can increase your income as well as reduce your risk of loss of income. At its core are IoT Projects that will improve customer experience. However, one of the issues that should not be overcome is that these investments can also accommodate efficiency-oriented investments. For example, parking services in shopping malls; information about how much free parking is on which floor. It’s made all of our lives a little easier.
New Revenue Channels – New Products and Services
It is necessary to examine this title separately alone, but to share it in a summary way; as it covers the investments made by the relevant company even though it is not one of the main business items; it includes the delivery of a product or service that is not included in our lives. Even though it is not one of the main work items; Examples are Google’s Autonomous Vehicle investments and any telecom operator’s investments in IoT and digital transformation. Examples include UBER, Shared Scooters, etc. as examples of bringing a new, non-existing service into our lives.
IoT and digital transformation investment drives that we basically collect in three topics; naturally served internet of things shaped their practice.
Most Common IoT Applications
The apps I write below are the first apps that come to mind when preparing this content completely. However, when you look at the products and services of startups in incubation centers where you can follow the domestic ecosystem, you notice that there is not much difference.
Whatever a country’s entrepreneurial ecosystem is mostly focused on; there is either a regulatory decision on that issue or the demand of the relevant market is high. See, pre-Covid Shared Scooter initiatives…
Fleet and Logistics
- Fleet Tracking
- Vehicle Tracking
- Asset Tracking
- School Vehicle Tracking
- Container Tracking
- Truck-TRUCK Tracking
- Smart Cabinets
Smart Grid and Meters
- Energy Monitoring and Management (with Filter Meter or Energy Analyzer)
- Transformer Tracking
- DER Tracking (Distributed Energy)
- Reactive Energy Monitoring (Compensation)
- Building Energy Management (Smart Buildings)
- Energy Transmission Systems Monitoring (STONE 2023)
Connected Mobility and Smart Tools
- V2X – (5G and Vertical Sectors)
- Vehicle Tracking and Routing – (Companion, Kopilot, etc.)
- After-Sales eCALL Service
Health IoT Applications
- Panic Button
- Fall Tracking
- Smart Cane
- Chronic Patient Follow-up
Smart Cities IoT Applications
- Car Parking Solutions
- Smart Lighting
- Interactive Stop
- Waste Management
- Shared Bikes
- Park/Garden Irrigation
- Smart Crossroads
- Animal Tracking
- Smart Irrigation (Sprout)
- Milk Quality Monitoring
- Fish Farm Tracking
In short, I wanted to show the areas where the domestic ecosystem focuses with the most common IoT projects that I try to give in examples.
Things to Consider for Successful IoT Projects
Innovative business models are at the heart of the success of IoT projects and investments. These business models do not cover sales area only. It also covers your technical feasibility. That’s why we need to ask who it’s for before asking how IoT projects succeed.
But there is still a valid criterion for success, regardless of who we ask for it. That’s domestication. Because there are very few successful IoT project examples that can present global samples in IoT applications to the market of the country related to potato printing. The reason behind the successful potato printing IoT project examples is that the need is the market independent partner. In this sense, we hope that UBER will provide the success it has achieved.
In a very simple sense, interest in IoT projects, let’s split focus groups into three;
- Telecom Operators
- System Integrators and Suppliers
- IoT Entrepreneurs
Let our customer be a production facility that is on its way to becoming a digital factory.
How Telecom Operators Succeed in IoT Investments
I have reviewed operators’ IoT projects and investments from time to time and shared content about it. We mentioned the iot business model for telecom operators and the criteria for success in general with Telecom Operators and Solution Ecosystem – IoT Partnerships. Now again, operators are among the companies most interested in IoT. The reason is not that communication technologies are the main business items, but that communication technologies, which are the main business items, should be more accurate to say that the share and value prose in IoT projects will decrease.
The pie share of communication in the end-to-end IoT value chain is between 7-18%. (Different research companies talk about different rates.) What all research institutions agree on is; IoT communication technologies are diversifying and monopolying day by day with LPWAN. So, Which IoT Communication Technology Should Be Selected?
It is possible for telecom companies to succeed in IoT projects by understanding their place and role in the IoT value chain. Operators will be the right strategy to be at the heart of IoT business models thanks to their skill sets and financial power. For this reason, it is a way to gather the partnership ecosystem from the past around IoT and become a reliable bridge between the customer and the partner.
It is obvious that he cannot only do this role as a communication technology provider. For this reason, global telecom operators offer IoT platforms and development laboratories in addition to communicating to their ecosystems. These opportunities are an infrastructure that the ecosystem can work with.
Benefits of IoT Investments for Telecom Operators
Efficiency Oriented is to reduce waste and increase productivity thanks to the digital transformation and IoT investments of their physical assets and employees.
Customer Ad- Holding, the possibility of providing solutions to the differentiing demands and needs of existing customers, the role of being the customer’s digital transformation consultant.
Creation of new business items and revenue from new business items with products/services such as New Revenue Channels, IoT, Digital Transformation, and Big data outside the main business items.
- Customer Holding Effect
- More Shares from IoT Value Chain
- Interaction with Different Departments on the Customer Side and Deepening with Rich Solutions
- New Revenue Channels with IoT Data
- Use of Main Work Items
IoT Projects Offered Without IoT Platforms
- Diversification of Services Offered with Different Solutions and Partners
- Use of Technical Products/Services, cloud etc.
IoT Projects Offered with IoT Platform
- The 5th Way to Deliver Different Solutions with One Infrastructure
- Easy Integration with a Different Platform
- Increasing IoT Benefit with Cross-Solution Data Interaction
- New Data Services with IoT Data Processing
- Singularization with Different Platforms Used for Main Business Items
- Ensuring Partner Independence
- Ensuring Device Independence
- Communication Technology Independence
- Fast and Easy Multining
- High Cybersecurity Measures
- Managing Network Traffic Density
Due to these benefits, telecom operators globally and in our country have included IoT Platforms in their talent sets and created ecosystems around these platforms.
However, if you don’t want to With Digitalization in Industry, many industrial companies have become interested in industrial IoT platforms. We shared what to consider during IoT platform feasibility and platform selection.
How System Integrators and Suppliers Succeed in IoT Projects
IoT System Integrators
First of all, one of the most remarkable trends in global is that telecom operators establish their own system integrator companies. However, this system integrators are mainly working as project management. Some new leading telecom operator-powered system integrators are developing their own internal software and device solutions.
In short, the main reason why telecom operators set up their own system integrators; it has developed an ecosystem-based business model and is an output of the effort to implement it.
However, if we examine basic system integrators such as Koç Sistem, Netaş etc. in terms of IoT projects; here, the return on IoT investments is possible by providing the fastest single infrastructure. The noteworthy point is that they have already invested in an IoT platform.
System integrators main work items are to create tailor-made solutions for the need and to ensure the integration of these solutions with the customer’s existing infrastructures. For this reason, the detached of each solution will lead to a decrease in the benefit for the system integrator and the customer. Because detached solutions are solutions that have difficulty in realizeing the potential for benefits. Because solutions are usually implemented to identify root causes that cause no problems and to identify root causes of efficiency-enhancing activities. However, in some cases, root causes can be caused by external sources, not from the existing business. Data interaction is vital here. IoT platforms provide data interaction and rapid multitlying of the solution.
IoT suppliers include both IoT platform suppliers and IoT application suppliers. For this reason, it is worth examining IoT suppliers in two headings;
IoT Platform Suppliers
IoT Platform suppliers such as Software AG, PTC, IBM, Huawei can succeed in their market by owning their platforms by the domestic ecosystem. For this reason, IoT platforms are not possible primarily by downloading global solutions to the relevant market, but by working on global platforms of local solutions.
Many companies in the Gartner Magic Quadrant table operate a verb in our country. However, it is also known that none of them have sufficiently domestic ecosystem solutions.
The fact that these companies gain strength in the domestic market is through domesticity. Because IoT investments are based on the detection and solution of a problem, ecosystem and customers focus here on infrastructures that understand and enable them.
IoT Application Suppliers
By IoT application suppliers, I mean IoT entrepreneurs who have their own income and are now in the SME or later segment. The main commonal point of such firms is; each of them has an IoT Platform(!). The difference between IoT platforms and IoT applications is why Should Solution Providers Integrate into IoT Platforms? we told you in our article.
Benefits of IoT Platforms to IoT Application Suppliers
- You’ll put less effort into CyberSecurity
- You can support different communication technology effortlessly
- Fast and easy multining
- Reduces operating costs of software
- The possibility of moving domestic solutions globally
- The device manufacturer has the opportunity to adapt to different applications without effort, while the software supplier; easy integration with different devices
Depending on the project and investment, benefits may vary and increase.
In fact, it’s kind of hard to group IoT entrepreneurs because; Even if they do not label themselves as IoT in incubation centers, the product and service they provide can be the output of an IoT project. Shared bikes and Scooters and GETR are the best examples of this.
But let’s focus on IoT entrepreneurs whose goal is to develop an IoT solution. IoT entrepreneurs are companies focused on developing and implementing the idea of a solution to a need that they naturally see in the market.
Many of these entrepreneurs start with the device. These devices are also trying to find a place in the market with millions of devices. The first step to rapid rise in this market is compliance with accepted standards and platforms.
The more platforms they are on, the easier it will be for them to find a place in the market. On the other hand, their compatibility with platforms such as IoT platforms will also reduce technical development processes. Since most accepted platforms are global platforms, taking part in these platforms will also accelerate the journey of becoming a global market player.
What IoT Entrepreneurs Should Pay Attention to for Successful IoT Projects
- If you start with the device, do not remain in a single protocol. Get more communication and platform options if possible.
- Don’t let your software be FUTURE. Your software should work on IoT platforms built to meet certain standards. Try to be one of the certified suppliers of these platforms.
- IoT Data Security! Leave the data security to the expert. Cybersecurity is a different area of expertise. Implementing generally accepted security measures can only save our day, and choose powerful platforms and partners to avoid security concerns in the future. Let him be a telecom operator if possible. Telecom operators specialize in end-to-end security.
- Don’t be a fan of technology. IoT business models are ecosystem-based. increase options. only Lora is just NB-IoT, only Azure Only Amazon… Shouldn’t. Get the word ‘only’ out of your 🙂
- Select verticals that may interact with the solution you are developing. Be open to data interaction with players in these verticals. Depending on the scenario, your solution may sometimes be in the center, sometimes in the attachment.
- ‘Think Globally Act Locally!’ Be sure to look at the global versions of similar solutions, if possible, try to be among the components of these solutions. They will be open to collaborations at the point where you are differentied.
- Value the data. There must be data information in your value proposition. Just don’t stay at my show.
- Let your solutions be on the MECE principle. In other words, it should be customizable in the individual customer when addressing the general public.
- Don’t let your goal be to make money from the first year. The first target should be more endpoints for propagation and more data.
- Be open to ‘Competitive Partnerships’. Your software must work in harmony with the native ecosystem players you see as competitors.
Be a Customer in IoT Projects
In IoT projects, going to the end user actually go through a little too many layers. Industrial Customers are customers of IoT suppliers while they are suppliers of their own customers. For this reason, IoT projects and investments should be in traditional seller-buyer logic.
Within the framework of competitive partnership. Industrial customers also tend to have separate applications to each problem, however; has started to move to a single infrastructure management in the name of business and data efficiency. IoT platforms stand out here and offer different solutions on one tray. They also offer technical infrastructure for tiered business models such as B2B2C.
To summarize, the success criterion for IoT projects and investments is to offer ecosystem-based differentiability but centralized management. You can get away from traditional business models and succeed with benefit-based sales strategies.