by Josh Simi, on June 23, 2015
Risk management flow chart on paper
Adding IoT to your product roadmap has many benefits, but as with any high-reward opportunity, the risks associated with entering the IoT space can be equally as high. In addition to the IoT challenges you may face when developing an IoT strategy along with tactics on how to address them, we have also identified the following pitfalls enterprises may be susceptible to when seeking to deploy an IoT solution:
Naive technology selections.
Employees and divisions that are new to the IoT space run the risk of making uninformed decisions about the technologies that are best suited for their solution.
Poor execution.
IoT solutions are complicated and require significant inter-department coordination. Inadequate planning can result in poor project execution, especially with regard to multi-team integration and quality challenges.
Lack of a comprehensive security strategy.
Security is one of the most important aspects of an IoT solution, and many durable goods companies are ill equipped to create and execute on a comprehensive strategy without outside help.
Unrefined business models.
New connected product offerings often require new business models that may be unproven or inconsistent with the way an enterprise has done business in the past; selecting the right business model that will maximize the return on investment is a challenge for many enterprises moving into the digital era.
Ill-equipped support teams.
Connected product fleets often require an organization to provide support in a way they never have before. Training programs, internal communications, external communications, and tools that allow support teams to remotely diagnose and troubleshoot issues are often an after thought that should be planned for from the beginning.
Not acting fast enough.
IoT is at the peak of its hype, and that means competitors are actively creating IoT solutions now. Organizations that do not move fast enough will miss the opportunity to capture an early market share of this quickly changing economy.
This list is not exhaustive, and many additional IoT risks may arise based on unique circumstances specific to each enterprise. In order to successfully navigate the IoT market’s rapidly changing expectations and table stakes, an organization must carefully access the possible risks and pitfalls.
To learn how to address the possible pitfalls and risks, check out our IoT Strategies for Diversified Businesses white paper.
