Top Mistakes in IoT Implementation – And How to Avoid Them
Implementing Internet of Things (IoT) solutions can be challenging. As with any new technology, there are common pitfalls that organizations can fall into if they don’t have the right strategy and knowledge. In this article, I will share the top mistakes I see companies make when implementing IoT, and give recommendations on how to avoid them.
Lack of Clear Business Goals and ROI
The #1 mistake I see is companies implementing IoT solutions without a clear business goal or expected ROI in mind. They see IoT as a hot, new trend and want to try it out without first identifying how it will benefit the business.
To avoid this, you must start with identifying your key business objectives and KPIs. How will IoT help you increase efficiency, lower costs, improve products and services, generate new revenue streams, or gain competitive advantage? Quantify the expected return and have a target ROI in mind. This business-first approach will inform your technology decisions.
No Long-Term Plan
Another common pitfall is diving into IoT without a long-term implementation roadmap. Companies get excited about the tech and deploy one-off pilot projects without considering how all the systems will eventually fit together in the future.
The best practice is to develop a 3-5 year IoT strategy and architecture. Think about your end vision and work backwards. What are the steps to get there? Which use cases and solutions do we tackle first? What infrastructure, connectivity, data management, and analytic capabilities will we need short-term and long-term? Planning ahead will ensure your solutions are scalable, interoperable, and built on open standards.
Using a Siloed Approach
IoT projects often involve multiple teams including IT, OT (operational technology), engineering, product design, and more. Silos between these groups can lead to disjointed implementations that don’t fully meet company needs.
Break down silos by fostering tight collaboration during all phases. Bring all stakeholders together early for strategic planning and requirements gathering. Leverage cross-functional teams for development and deployment. Shared ownership and decision making will lead to solutions that provide value across the organization.
Not Considering Security from the Start
With so many IoT devices collecting and transmitting data, security risks are exponentially greater. Unfortunately security is often bolted on at the end instead of designed into the architecture from the beginning.
Make security a priority from day one. Build it into your network design, device protocols, data transmission processes, access controls, and analytics. Identify assets, risks, vulnerabilities and implement appropriate controls. A security-first approach can prevent devastating attacks or data breaches down the road.
Choosing Vendor Lock-In
Many vendors promote closed end-to-end IoT platforms that lock you into their proprietary stack. This limits flexibility, stifles innovation, and leads to expensive vendor lock-in down the road.
Seek open interoperable solutions instead. For example, use open source software, standard interfaces like REST APIs, and platforms that integrate with third-party solutions. This prevents lock-in, enables best-of-breed options, and gives you ownership of your IoT data.
Not Considering the Impact on People and Processes
IoT isn’t just about deploying technology. To be successful, companies also need to evolve their processes, organizational structures, and talent skills to leverage IoT’s full potential. Without these changes, you are simply digitizing old ways of doing things.
Analyze how workflows, roles, and metrics need to adapt. Upskill employees through training and hire new talent like data scientists and developers. Change management and organizational development efforts are key to realizing the full business benefits of your investments.
Not Planning for Data Management
IoT deployments generate massive amounts of data that holds little value unless it is properly stored, processed, and analyzed. Companies often underestimate data volumes or use piecemeal data management tactics.
Take a strategic enterprise approach to your IoT data. Architect a scalable infrastructure with appropriate databases, data lakes, and warehouses from the start. Cleanse and contextualize data for analysis. Choose analytics tools that help extract meaningful business insights. Well-managed data will be a competitive advantage. Poorly managed data will overload your infrastructure.
Moving Too Slowly and Not Scaling
Finally, a big mistake is taking too long to evaluate, proof of concept, and eventually deploy at scale. Companies get stuck in endless pilots or small isolated projects. By moving slowly, they fail to gain meaningful return on investment.
Once you’ve proven the value of specific use cases, quickly move from small tests to full deployment across your organization. Create minimum viable products to get to market faster. Scale outwards across locations, product lines, and business units. Develop repeatable processes to accelerate expansion. Aggressive implementation will maximize your competitive edge.
Key Takeaways
Avoid common IoT pitfalls by taking a business-first approach, creating a long-term strategy, breaking down silos, prioritizing security, seeking open solutions, adapting processes and talent, planning robust data management, and scaling quickly. With the right vision and preparation, you can successfully transform your business with Internet of Things.
