Connecting the Dots: Today’s IoT Reality

By Kushala Silva, Head of Technology at Ericsson IoT Studio.
By 2025, IoT connections will reach more than 24.9 billion , compared to the estimated human population of 8.1 billion people. This unprecedented rise in connected technologies has enabled a world of opportunities for companies looking to digitally transform any part of their business. This includes improved productivity, safer and more efficient supply chains, as well as remote capabilities across industries like retail, manufacturing and energy.
But what is hype and what is reality?
Solving without a strategy
For years now, the tech industry has been promoting new technologies like the Internet of Things (IoT), Artificial Intelligence (AI) and Machine Learning (ML) as the “silver bullet” that’s going to solve all business problems and bring in new revenue streams. Faced with increased demands, service providers, enterprises and industries are continuously trying to decide which IoT path to take in order to transform and streamline operations. However, the promise of real-time metrics, actionable data and industry wide connectivity has left many companies susceptible to jumping on new technologies early without a tangible, desired business outcome.
For IoT specifically, a common problem that businesses often face is trying to solve an issue without a proper strategy in place. There are two types of scenarios enterprises typically come across; 1.) business outcome-driven IoT solutions and 2.) general adoption of smart IoT solutions. Those that implement solutions to address a real need are often driven by business results that align with corporate goals and objectives. Whereas companies adopting smart solutions for the sake of marketing and sales typically risk invalidating the initial investment and a business’ progress forward.
Take the connected home as an example. Common devices range from a connected coffee maker to a smart fridge. While these products allow for more control and convenience among consumers, more often than not, the allure or concept serves no value and is not worth the price tag. On the other side, the companies behind these products implemented IoT solutions in order to track users’ consumption and supply chains across the country so they can optimize operations. While beneficial at the enterprise level, did it address a real market need or problem?
Even though the need to efficiently connect billions of physical devices around the world rapidly increases, the IoT landscape remains fragmented. While some industries have been quicker in deployments, launching an IoT solution is still a complex process.
The reality is that enterprises should avoid looking for smart solutions, and instead focus on business outcome-driven solutions. And this is where IoT-driven product leaders can serve a purpose, by collaborating with enterprises to validate use cases and solution hypotheses, as well as...