As per a recent estimate, 31 billion new IoT devices were installed in 2020. Many startups are taking steps to enter the arena of the Internet of Things. Whether you’re looking to develop a new product or service or augmenting your internal operations with IoT, there are a few things you need to know before investing the first dollar.
But first, let’s see why IoT is lucrative and exciting for startups.
4 Reasons Why Startups Invest in IoT
1. Business opportunities
There are business opportunities galore for startups wanting to enter the IoT space. Some of these include remote monitoring, smart city projects, assets tracking, and more. All of these applications of IoT have led to successful business outcomes.
Having seen proof that IoT has real-world applications in businesses, companies can reposition themselves and launch new products integrated with IoT capabilities.
2. Cost control and efficiency gains
The ability to capture real-time data from devices in an intelligent ecosystem allows organizations to balance overhead by cutting operational costs. For instance, in the manufacturing industry, better production and service efficiency can drive continuous activity and reduce downtime and production losses.
3. Workplace Safety
When poorly serviced industrial equipment is monitored in real-time, emergency response can be quick. Automated fingerprint scanning for authorized areas can reduce the risk of intrusion.
In manufacturing, regular tracking of assets can warn managers of potential risks before incidents happen, leading to prevention.
Data gathered from IoT devices can be used to personalize advertisements and other experiences for customers, leading to improved customer acquisition and retention.
Personalization with IoT can facilitate consumer-based marketing to recommend products and services that the customer is more likely to need.
What You Need to Know Before Investing
A quarter of consumers who use smart home and office devices are concerned about their security implications. Be it smartwatches, voice assistants or sensors, each faces a unique set of security challenges.
These challenges fall into three categories-
- Device malfunction – When IoT devices have control over mission-critical systems, malfunctions can impact life and property.
- Cyberattacks – IoT devices rarely encrypt data that flows through them. Even if they do, there’s a perfect opportunity for malicious attackers to exploit vulnerabilities, leading to data and network breaches.
- Data theft – The volume as well as significance of the data that traverses through IoT devices is irresistible to many malicious actors who use it for advertising products, selling it directly, or stealing online identities for malicious purposes.
For a startup wanting to step into the IoT space, it’s critical to understand the security liabilities that come along.
Before investing in IoT development, startups should mull over how their product or service will integrate into existing systems and sit beside technology from other vendors.
While it’s good to have options to explore when consumers, for instance, go shopping for smart home or office devices, it’s a source of frustration when IoT devices stand incompatible with those from other vendors.
Overcoming this fragmentation through proper connectivity can lead to a smooth user experience and better chances of adoption when your startup hits the market with the offering.
Internet of Things applications require installing heavy infrastructure consisting of sensors, devices and right containers for data storage that can help apply that data and turn it into useful insights.
As such, IoT development requires proficiency in setting up a network of devices and sensors to work in tandem, capturing and processing huge amounts of data, and turning that data into reports that facilitate decision making.
So it only makes sense for any company to ponder over the upfront investment and the technical feasibility of their solution, given the heavy infrastructure required to support IoT solutions.
By 2025, the global human population will rely on over 75 billion interconnected IoT devices. Just as rapid adoption can lead to quick innovation and a rush to create something of significance, it can also lead to solutions that quickly become outdated or replaced.
Not only is that a major risk to all the effort and money investment but also to your company’s reputation. Ensure that your IoT development company designs products that are future-proof and reliable for years to come.
Security and Maintenance
Security aspects of IoT development can never be taken for granted, given the humongous amounts of data that travels through these connected devices. Even when startups are not capturing and using highly sensitive data, the underlying security should be prepared for it.
No matter what consumers buy, they will have questions and they will run into issues. Ensure that you have a smooth process to manage the maintenance and upgrades of your IoT devices and solutions to offer an overall smooth experience.
As investments in IoT grow, startups should get in for the long term, meaning security and maintenance will have a role to play.
Financial Rates of Return
The key to ensuring successful IoT investment is to align it with financial rates of return. The initial investment estimate may not cover the full range of ongoing processes. So startups should factor in additional operational costs for each IoT device required during the setting up.
Startups should also consider whether an internal transformation is required in terms of the hard skills needed to support the go-to-market of a cutting-edge IoT offering.
Several industries, including manufacturing, healthcare, agriculture, and transportation, are experiencing the transforming applications of IoT. KiwiTech is an IoT development company enabling such transformations for our customers.
Need IOT application development services? Reach out to us today!