The IoT – everything connected everywhere in a global market. If only it was that simple. Of course, there is a global IoT market for many networks and applications, but one with vastly different needs and business cases by sector, by country, by region and by different means of communication.

IoT ROI

If you are considering developing an IoT solution, the first step is to research exactly what is required to achieve, and what you are looking to accomplish. Will there be a sufficient return on investment? The world is full of bright ideas but turning those into commercially successful products and applications takes time, expertise and an in-depth knowledge of the target market.

With healthy growth predictions for the industry, it can be tempting to leap into creating an IoT solution in order to take advantage of the perceived financial rewards of digital transformation. However, deploying an IoT solution is still a complicated process – even more so if it is to be on a multinational scale. It’s important to evaluate the potential by creating a trial to test out the connectivity, activities and devices. And to use a robust, future-proof and flexible environment to streamline application development – that approach will enable return on investment for you and your customers.

Securing Your Connection

Start small and understand how the system is going to be secured, how data are going to be collected and utilized. The connectivity options need to be carefully considered in terms of availability, suitability and cost, along with the data plans and service levels. The cost of connectivity will increase with the size of the network, and if the deployment is international then roaming charges may need to be factored in. Many IoT deployments can fail quickly if insufficient consideration is given to the financial and organizational resources needed to scale up the network; adding, organizing, monitoring and managing significant numbers of new devices.

Then there is the security element – the IoT works 24/7/365 so it needs to be fully protected and continually monitored to ensure not only the integrity of the network but of the data that it is collecting. Today’s cyber criminals are committed to evolving their approaches to hacking and stealing, and traditional protection such as VPNs and firewalls are no longer enough. There also needs to be a full understanding of the legal requirements relating to areas such as authentication and data privacy.

The greater the number of devices connected, the more data are collected and transmitted. To realize the value of any IoT deployment, that data information has to be expertly managed. The real value is in the efficient, cost-effective gathering of data, and its transformation into valuable and relevant information. The ownership of the analysis needs to be factored into the commercial proposition to create a complete offering for the market.

Once the components of the IoT networks are in place, the security established, and the data flow properly managed and supported, the stage is set for success at scale. With the assurance that the IoT is stable and protected, expansion can be undertaken with confidence. With solid foundations, a flexible network can be created with the capability to be rapidly adapted and enhanced to meet increasing market demand and changing customer needs.

Planning, testing and evaluating an IoT solution is critical if you are planning to build a viable business and achieve long-term success. The days of making money from component manufacturing alone are almost gone. This is a business environment where true leaders are defined by their ability to deliver a complete IoT solution that brings real added value to their customers.

Yariv Dafna joined Telit in 2003 and took an active role in Telit's IPO on AIM in 2005 and in other fundraisers that the company undertook since then. In 2006, he was instrumental in the purchase of the M2M division of Bellwave (currently named Telit APAC) and the establishment of Telit Americas. Dafna took the position of the company's CFO from February 2007 to June 2012. In July 2012, Dafna became the Corporate Development officer overseeing all the M&A activities in the Telit Group. In 2016, he was appointed the COO position with responsibility of all the operations and purchasing activities. In November 2017, he was appointed to the Board as Finance Director. Dafna holds a BA in Business Administration and Accounting from the College of Management Academic Studies (Rishon LeZion, Israel), MBA from the Tel-Aviv University and he is a certified Public Accountant. Dafna began his professional career as an accountant at Deloitte Israel.