Why do 75% of IoT projects fail?

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If the potential of the IoT is very real, connected object projects are experiencing a rather nuanced development.

A recent study conducted by Cisco on a panel of nearly 2,000 IoT projects showed that nearly three-quarters of IoT projects were unsuccessful. An astonishing observation, which we thought would be interesting to take a closer look at.

The study thus affirms that 60% of IoT initiatives remain in the POC (Proof-Of-Concept) state and only 26% of companies consider their IoT project to be a success.

Among the five main reasons for these failures :

  1. Too long deployment time
  2. The poor quality of the data collected
  3. Lack of in-house expertise
  4. Integration issues
  5. The uncontrolled budget

These results are ultimately not surprising given a market that is still relatively immature, despite the exponential increase in the number of connected objects, and given the evolution of technologies, standards, and the limited expertise of players across the entire IoT value chain.

Because of this observation, how can you be sure of the success of your IoT project?

There are many elements to understand and good practices to know. Here are a few tips.

Have a clear vision of the objectives:

Integrating the IoT into a business project will inexorably lead to a disruption of the business model, which is positive for renewing and differentiating in increasingly competitive sectors.

However, we see that many companies approach the IoT in the wrong way, with the sole objective of connecting more and more objects and then seeing what the data can bring them.

First, make sure that your IoT project responds to a clear user problem. For an IoT project to bring potential and value to the company, it is essential to align its IoT project with its business model and strategic objectives.

Think the data in added value

We talk a lot about connected objects and for good reason. In 2017, nearly 11.2 billion connected objects were identified (Study by Cabinet IDATE). In 2030, the stock of connected objects is estimated at 36 billion objects. It’s insane. But in reality, it is a mistake to see these connected objects as an end in themselves, because they are only a means of capturing data. And it is this data that is the true value.

The return on investment of your IoT project will only depend on the analysis and use that will be made of this data. How to collect it, process it, and above all transform it into intelligent information. This is where the power of analytical algorithms plays a vital role.

Be realistic

There is a good chance that your company is not sized internally to answer all the questions. Instead of focusing on things you don’t master, stay focused on what you can do and surround yourself with IoT partners who can provide you with the technological building blocks you need.

surround yourself well

As we have seen, it is strongly advised not to embark on the IoT alone. It is sometimes complex to navigate the proliferation of IoT players as the fields of expertise are vast and varied.

So prefer to co-construct your IoT project with a single player who controls the entire value chain of a connected object project and who will be your single point of contact to carry out your project. It will allow you to understand all the technological requirements of your project.

Think user experience

Your IoT project can only really be successful if it meets a user’s need and offers a new experience and new use. So make sure that you have mastered all the pitfalls to promote the adoption of your service by your end-users.

Does this include asking how will the captured data transform the experience of your customers? What added value will it bring? And how will this collected information be converted into revenue?

Think end-to-end security

The Internet of Things has become the target of massive cyberattacks. However, it is common to find that security does not appear in the first thoughts of deploying a connected object project, which is a serious mistake. An additional level of security must be brought to each brick of a project.

A sine qua non-condition for the project to deploy its full potential, in particular by reassuring end-users about the protection of their data. Trust being an essential element to ensure the adoption of the service.

Think continuous improvement

Being agile in the deployment and supervision of your IoT project is essential.

Test, experiment, and be ready to take on new challenges all the time. Technologies are evolving very quickly. New sensors that are ever smaller and more efficient are constantly appearing on the IoT market, standards are progressing.

You will only be more responsive for your future IoT projects…

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