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An average of 90% of business strategies fail to deliver as a result of failed advance planning and poor deployment of technologies forgetting customer needs.
With only 10% successfully getting to production, Patrick Shields, Chief Technology Officer, Software AG, alluded to an average of 40% of IoT solutions that get to fruition, produce businesses actual value, progressing from IoT strategy to execution.
“IoT is not just about devices that can collect data and display it on a dashboard, it is about delivering outcomes that produce measurable monetized business value. This value needs to translate into money by either reducing costs, improving efficiencies or increasing income,” Shields stated during his presentation at the ongoing IoT and AI Summit at Crowne Plaza Hotel in Nairobi.
According to survey results by Software AG, essence of a successful IoT solution is not just in the devices, and in collecting the data – but rather about deriving value.
“The tons of data that is collected by the variety of devices needs to be able to be monetised. The outcomes need to create value, and in the fast-moving world of IoT, the value of this data is quickly lost, preventing its ability to offer monetary value if not acted upon in real time,” he added.
But, this isn’t the only value that IoT can offer, it is also able to mitigate risk. I believe that IoT gives us the ability to identify and eliminate “value leaks” in our organisations.
A value leak is caused by organizational friction that occurs within a business activity when unresolved inefficiencies and bottlenecks are present. These “leaks” can be prevented, which enables organizations an opportunity to avoid costly occurrences such as missed performance targets, unscheduled maintenance issues and supply chain irregularities.