IoT platform selection as a strategic success factor
The “Internet of Things” (IoT) has now firmly got a grip on European companies. The question of how production, logistics and value chains can be further optimized using sensors and intelligent analysis mechanisms or combined to form new business models is what drives technology and industrial companies in particular (“Industry 4.0”).
However, the majority of decision-makers are still struggling when it comes to planning, technical conception and the concrete implementation of IoT and Industry 4.0 projects.
Since industrial companies and automotive groups are increasingly appearing on the market with their own solutions and IoT subsidiaries (e.g. Bosch SI, GE Digital etc.), the market and competitive landscape are changing at a rapid pace.
In addition, global cloud providers such as AWS, Microsoft, IBM etc. are expanding their platforms at a rapid pace with IoT processing and analytics functionalities and competing with traditional software providers here too.
For decision-makers in companies, it will be essential for long-term conception of IoT strategies and their successful implementation in the coming years to adapt their plans to the changing value chains and market conditions. Because more and more companies are currently transitioning from the implementation of the first IoT prototypes and MVPs to productive operation and the scaling of strategically relevant IoT solutions.
Thus, the question of “make or buy” and the selection of the right IoT platform or IoT software comes into focus and becomes a success factor for all those who want to earn money with IoT. Because once IoT platforms are integrated as a strategic component in the complex IoT architectures and business processes, there is no going back. The design and selection is therefore definitely of a strategic nature.
Tasks of IoT project management and IoT platform selection
A number of tasks and challenges have to be mastered in order to successfully manage IoT projects. Assuming the support from senior management and a corresponding budget, digitization and IT decision-makers must start planning their IoT project as well as possible (concept, use cases, business value) and try it out as part of proof-of-concepts . Initial testing, based on prototypes, is of great importance. This is the only way to specify and check the connectivity, security, data handling and system design requirements of the IT architecture. Corrections are risky and expensive in productive operation, when the systems have to process large quantities of sensor and log data.
Once the strategic conception and the rough draft of the system design or the architecture have been completed, the important question arises with regard to the IoT platform and software selection. So companies have to decide whether they want to rely on their own development or whether they want to use a finished IoT software platform.
Against the background of the high level of complexity and the wide range of functions and requirements in combination with a fast “time to market”, the majority of German and European companies are currently focusing on the use of established IoT software platforms or a combination of both manufacture IoT software solutions and IoT infrastructure and platform services from the major cloud providers. In the future, according to Crisp Research, more and more companies will start to independently develop the higher-quality and industry-specific components of their IoT platforms in order to differentiate themselves and directly control a larger part of the added value. Cloud platforms and finished IoT software solutions are then used primarily in the area of infrastructure and generic IoT functionalities. Nevertheless, an in-house web development must be assessed realistically and, above all, the technological risks must be carefully considered.
Which individual criteria and considerations should play a role in the evaluation and selection of the corresponding IoT software and IoT platform providers is discussed in the second part of the Analyst View.
After selecting a suitable IoT software platform, the company needs to implement and integrate the corresponding solution. Since most IoT projects are projects with a high level of innovation, it can be assumed that new features will have to be developed and taken “productively” again and again during operation. The IT operation requirements of an IoT solution are therefore very high, as maximum reliability, scaling and agility meet here.
In addition, the internal IT service providers or external managed service providers who are responsible for the ongoing operation of an IoT solution must also ensure that they are protected against disruptions and attacks in order not to endanger the digital business models, and that in the company not to disappoint confidence placed. The latest DDoS attacks, which have paralyzed the websites and data center infrastructures of large American and European companies via hijacked IoT networks, provide an outlook on the future challenges. This is offset by enormous business and innovation potential, which companies and their digitalization managers absolutely want to address.This great article is written by the Carlo Velten who is the IT research and currently working at Folio3 ProAction Dairy Farm Compliance Management Software company.
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