It’s strategy not technology that challenges enterprises in IoT




from It’s strategy not technology that challenges enterprises in IoT
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Rami Avidan is responsible for the Internet of Things (IoT) business at T-Systems, Deutsche Telekom’s enterprise customer unit. Having worked in IoT for around 20 years, he tells IoT Now, that, as the IoT market place develops, enterprises are focusing on strategies for the long term rather than specific technologies. Avidan is confident that network technologies and IT are now in place to enable most IoT use cases. The strategy and the evolution to a digitalised world are now the main challenges.

IoT Now: IoT service providers often tell us their customers arrive having already experienced project failures in their IoT pilot projects. What are the common mistakes?

Rami Avidan: First of all, there has been an evolution in the market. When this concept of IoT started 20 years ago, we all came at it from a technological angle. We were playing with technology and trying to create value from that rather than from strategy. The players that fail today start off looking at IoT from a technical perspective but this is not a technology play. Anything you want to do today can be done with technology so the question is what do you want to do in your business. Therefore you need to focus on the strategy of what you want to achieve.

The other thing to remember with IoT solutions deployment is that they are going to be valuable in the long term but it takes time to get there. Organisations roll-out IoT in pockets of their businesses and expect immediate value but this is normally not the case. Therefore you need alignment in the boardroom of what the value is going to be and an understanding that this is going to be a long term process.

The definition of long term depends completely on what you want to achieve. If you’re selling a service and it gains uptake rapidly, you’ll have fast results but if you’re digitising a factory, it’s not a quick fix. Deploying sensors, linking them, optimising the data and changing the behaviour of machines is a long term process.

I tell customers that you have to think very big and for the long term but you must start small. This is because it is not just about implementing technology, it’s about educating people if you’re going to change behaviour to fit the new model. This is not only about
machines, people must go on a journey too.

IoT Now: How can enterprise users succeed with IoT from the start? Should they phase the introduction of IoT-enabled applications, then gradually scale up?

RA: It does depend on the type of business but I’d advise not going big immediately. It’s vital to come at this from a position of what you want to achieve in the end and to do so in a way that is crisp and clear. If you have this clarity, it will be easier to measure the value that IoT does or doesn’t bring.

Companies make the mistake of thinking they can go to a number of different […]

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