IOT and Return On Investment
Let’s face the facts. Business to Business (B2B) buyers in mature markets are more interested to understand the return on investment than any other parameters in their buying process. This is more so during times of business crises such as Covid19. With the advent of wireless industrial automation solutions, businesses can easily adopt these technologies because they are easy to deploy and implement.
What is your return on investment in ICT? To some business owners, it is about aligning business strategy with ICT strategy. For others, it could be about maximizing the cost-saving – near term returns one gets from the deployment of ICT solutions. Cold chain solutions can help reduce damage to medicines and perishable goods. The immediate cost-saving model is however of much importance to small business owners investing in ICT initiatives, especially in Europe where the pangs of a slowdown are still being felt.
Although many of the SME vendors talk about the concept of ROI, not many have the expertise to demonstrate the solutions and validate the “numbers: using a before and after deployment scenario with the client and their end customers. Integrating production systems can help a lot. Learn how Farmers can improve crop yield by deploying remote monitoring solutions
IOT return on investment
Our ROI calculators focus on both, short term measurable and long term strategic models. These models have been developed after more than 5 years of in-depth surveys and pre and post-implementation scenario analysis and interviews with owners and managers from 300+ small and mid-size businesses. These organizations employ between 50 – 200 people each and have in certain cases, more than one location of operations.
Typical Return On Investment (ROI) would involve measurable aspects such as lower cost of ownership, reduction in inventory levels, less wait time for customers, higher throughput in various functions, improved cash flow etc.
Strategic aspects involve, helping the business unit undertake a higher volume of transactions using the same resources, optimizing business processes, cutting down functional silos, higher accountability at departments, identification and fixing revenue drain areas and introduction of efficient business models.
Thus, cost savings could be about the client saying “I saved over 10,000 Euros after implementing xyx” or them saying “I reduced headcount by 10 and increased business turnover 5 times” or “My customers now raving about our business agility and orders are pouring in”
How IOT deployment can save you millions of dollars
- Improved billing hours for medical and construction assets
- Intelligent preventive maintenance for reduced breakdowns
- Better inventory of consumables and spares
- Reducing the misuse and abuse of equipment and consignments
- Improve tracking and less search time for products
- Improved audit capabilities and fixed asset management
- Improved people productivity and lower communication cost
We have, over the last few years build comprehensive models around ROI based marketing to deliver measurable value to our clients. The models have been demonstrated at various Industry 4.0 events and business schools from a practitioner’s perspective. Our ROI models are now being built for IOT platform deployments for customers in Africa, Europe, and Asia Pacific region.