How can the Internet of Things transform your business? Five questions you should be asking.
As the buzz around the Internet of Things (IoT) grows even louder, the technology has become almost impossible for CIOs to ignore. Much has been written about the power of IoT to transform Canadian businesses, but amidst the hype and predictions it can be challenging for a business to know where to start.
A recent IDC study commissioned by TELUS revealed that Canadian businesses have been slow to adopt IoT technology. According to IDC, by the end of 2014 only 13 per cent of Canadian businesses will have deployed IoT or have projects underway. But that number is expected to change – and fast – with an additional 30 per cent planning to deploy in the next two years.
By 2018, IDC expects more than 28 million connected "things" will be at work in Canadian businesses. As IoT moves to the mainstream, it's become increasingly important for business leaders to start developing an IoT strategy. When millions of things can be connected, the technology can seem overwhelming at first glance, but according to Jim Senko, senior vice president of small business and emerging markets at TELUS, adopting IoT technology doesn't need to be complicated.
To make it easier for Canadian businesses to embrace the technology, TELUS created the IoT Marketplace, an online catalogue of innovative ready-to-implement, IoT Solutions that TELUS has curated from industry-leading technology partners. Many solutions can even be billed as a monthly service, eliminating the need for upfront capital expenditures.
"Small changes can have a big impact," said Mr. Senko. "A business can start with something simple like remotely tracking vehicles or high-value assets and then evolve their IoT strategy as they gain experience with the technology and understand its potential."
For businesses considering an IoT solution Mr. Senko says there are five key questions to ask:
What are my biggest business challenges?
Before evaluating IoT solutions, you should identify your greatest challenges to determine where the biggest potential lies. What long-standing issues have vexed you in the past? What areas of your business are the most expensive or resource-intensive? What are the biggest risks to your business?
"By identifying your most pressing challenges, it's easier to select the devices to connect and processes to automate first," said Mr. Senko. "For example, any business with fleet of vehicles is probably worried about rising fuel and maintenance costs. A fleet management solution can optimize routes and scheduling, improve driver behaviour and provide proactive maintenance updates. Even with a small fleet, the return on investment would be almost immediate."
How are others in my industry using IoT?
IoT technology is being deployed in almost every industry: healthcare, manufacturing, transportation, retail, oil and gas, insurance, financial services, food service and utilities. By taking a look at the solutions other companies in your industry have implemented, you can quickly gain a better understanding of where IoT could benefit your business, or where your competitors are pulling ahead.
You can turn to other industries for inspiration as well. In some sectors, like transportation and utilities, first-generation IoT technology (commonly referred to as machine-to-machine or M2M) solutions have been in place for more than a decade. One of the earliest M2M applications was home security, which now leverages wireless networks to provide real-time alerts and video footage to mobile devices – an innovation that could be leveraged by nearly any industry.
"With technology that is advancing as fast as IoT, it's critical to build on experience," said Mr. Senko. "And in many cases, early adopters have helped turn highly customized implementations into off-the-shelf solutions."
What kind of investment will this require?
The short answer is: less than you think. As the IoT market has matured, the cost of hardware has decreased dramatically. With the "intelligence" of most solutions residing in the cloud, upfront infrastructure costs are falling as well.
Additionally, many IoT solution providers now offer IoT-as-a-service – an end-to-end solution that includes hardware, software and connectivity – neatly packaged as a line item on a monthly statement.
"Rather than thinking about IoT as a major capital expenditure, think about it as an operating expenditure that can scale with your business," said Mr. Senko. "When there's minimal upfront cost and huge potential benefits, all of a sudden there's a very compelling business case for an IoT solution."
What about security?
The data generated by a network of connected devices, which can include sensitive customer information, can offer unprecedented insight into your business but it also means increased security risks.
The Heartbleed bug and recent high-profile security snafus have brought to light the negative press and brand damage a breach can cause. When you evaluate an IoT solution, it's critical to make security a top priority and seek out a partner with proven security experience.
"Security is a key element of any IoT strategy," said Mr. Senko. "Don't be afraid to ask tough questions about how a technology provider is going to keep your networks secure or where your data will be stored. Your brand's reputation is on the line."
What else is possible?
The IoT market in Canada is still in its early stages of maturity, and its potential applications are only limited by the imagination. While there are hundreds of business-ready solutions available, custom applications can be developed to meet any organization's unique needs.
What could you do with real-time data from any object in your business? Instead of automating processes, could you completely reimagine them? How could IoT change how you communicate with your customers? Can IoT create new revenue streams or business models?
"We've only scratched the surface of what is possible with IoT and there's going to be tremendous innovation in this area in the coming years," said Mr. Senko. "Canadian businesses should not only be thinking about how IoT can help their business today, but also how it will disrupt and transform their industry tomorrow."
This content was produced by The Globe and Mail's advertising department, in consultation with Telus. The Globe's editorial department was not involved in its creation.