Internet of Things makes the smart connection between efficiency and profit
“The internet of Things (IoT) is not a technology initiative – it is a business improvement initiative” in The National, daily newspaper from United Arab Emirates.
IoT consists of a wide variety of devices whose embedded technology enables them to exchange data. IoT is characterized by having multiple applications and provide support to an extensive range of business models. Despite having multiple applications, we can identify four main usage models: devices can be monitored and optimized; monetized on a pay-per-use basis; remotely operated, avoiding the need to go on site; or be extended with digital services. Thus these usage models contribute for organizations to set two main business priorities: the first ones having fundamentally to do with reducing costs, improving productivity or efficiency and optimizing resource utilization whereas the second ones belong to the domain of growing sales, finding new growth markets and so on. Hence we can conclude that IoT makes the smart connection between efficiency and profit. Therefore, behind every IoT project there is a business priority, not only a merely business improvement initiative or technology initiative.
Nowadays, government departments, industries such as oil and gas, where ISA is a player, etc. are currently identifying various pilot projects in IoT despite many other businesses in the Middle East. Lack of infrastructures and relevant business use cases, lack of willingness to commit investments in an emerging technology area that is yet to prove business returns globally are some of the obstacles that Middle East organizations face when it comes to implement IoT. However, it is expected to Middle East’s businesses realize more and more how that IoT can transform organizations as more success stories emerge. According to The National, there is still a gap between the potential influences of IoT on the Middle East’s business and the perception of those effects. This gap is pointed as the major deterrent for organizations to take the first step toward IoT. The National also recognizes that businesses will have not also to focus on the immediate opportunities but also on smaller pilot projects in order to succeed on the IoT implementation.
The National predicts that by 2020, it would be possible to see investments from large end-user organizations that are presently at the initial stages of undertaking pilot projects.
Middle East is a geographical region of main interest for ISA who is actively searching for new clients and partners.