As I was writing an article for the upcoming IoT Evolution conference in January, it occurred to me that the whole concept of a focus on creating a return on investment for customers, regardless of the type of technology being implemented, is the only practical approach to long term, sustained growth. The internet of things and machine-to-machine technology has allowed businesses to automate processes, often without any human intervention. That’s cool, no doubt, but what is even cooler is the savings that can result from such a change and our ability to demonstrate a definitive payback period for the investment.
Implementing cutting edge technology to increase efficiency is a good thing, but sometimes that cutting edge becomes a bleeding edge, when companies grab the latest shiny new gadget without first carefully studying the impact on costs. Making an investment in new technology should follow the same process as we would for any investment, whether business or personal. This includes an assessment of risks and rewards, with a conservative estimate of projected savings. A simple calculation of the projected payback period allows us to ask ourselves if the investment is worth tying up our money for an extended period. Of course, if the benefits will continue for years beyond the payback period, the investment may prove well warranted.
As an IoT solutions provider, we are always excited when we see opportunities to use emerging technologies to solve real world problems for business owners. But what excites us even more is being able to sit with a business owner and demonstrate how what we are providing will produce an outstanding return on investment, making money for the business and allowing us a reasonable profit. Creating these win-win solutions is what it’s all about, putting the ROI in IoT.