You’ve probably asked yourself: “Why should I care about IoT and what is the ROI after all?”. The answer to this question is varied. Here are the main arguments:
1. Improving Customer satisfaction
Making products and services “smart” gives them the ability to respond to the customer and offer him the chance to personalize them.
b) Higher quality
Product manufacturers or service providers can achieve a higher quality of their products and services, by applying targeted improvements derived from continuous feedback about their usage.
2. Business model optimization
a) Objective decision-making basis
Through a systematic collection of data and their evaluation and analysis, data-driven and thereby objective decisions are now possible.
b) Reduce costs
By reducing the costs the efficiency and profitability of your business increases. Here IoT offers concrete approaches. Simply by facilitating remote monitoring and remote maintenance, the corresponding costs are reduced tremendously. Just imagine how much time and money it would cost to send a service technician on site and let him perform the analysis and the repair there. Remote monitoring allows a smaller number of employees to monitor the same number of facilities, thus saving labor costs. Due to automatic data collection and analysis optimal decisions can be made, such as if and when a part is to be maintained at all. This decreases the material costs, avoiding unnecessary downtime and thus increases the productivity and reliability of the whole system.
c) Increase revenue
Increasing revenue is another essential component of the decision for IoT. With an optimal IoT solution and thereout resulting process optimization it is now possible for a business to achieve a significant increase in productivity and thus to provide greater performance with the same resources. A higher performance automatically reflects in higher revenue. For example, through remote monitoring and maintenance it is possible to look after more systems with the same personnel and at the same time. In addition, a targeted maintenance increases the productivity of facilities, because the downtime is reduced to a minimum.
d) Transform the business
If your business model is already mature and the revenue streams have reached their maximum throughput or have a descending trend, it’s a good time to think about an extension or diversification of the business. At that IoT supports you considerably. By developing new revenue streams, such as offering new services (remote maintenance and remote control), you can expand your business further. Some companies go even a step further by changing their business model radically from selling equipment to selling uptime.