The Internet of Things (IoT) is taking off and creating lucrative opportunities for service providers and channel partners in several verticals including healthcare, manufacturing, transportation, energy, and food and beverage, among others. And the really good news is that you don’t need to know much, if anything, about the technology to get involved and start earning a piece of what Statista projects will be a $1.6 trillion market by 2025.
The challenge is that the technology pieces aren’t yet integrated (for the most part) and the supply chain is hyper-siloed. But that leaves the door open for professionals who can put the pieces together for their customers. To do that, all you need is access to experts who can help as you start canvassing for IoT applications –and they’re out there. Two that come to mind are Natasha Royer Coons, chief revenue officer at Advantix, and Steve Brumer, partner at BH IoT Group. We know from experience that these two are in constant dialogue with new entrants to help them develop IoT solutions for customers.
Royer Coons likens the developing IoT market to the Wild West, providing rich opportunities for service providers and channel partners who stake a claim. It’s an expanding frontier to be sure. And as complex as IoT applications can be, they often aren’t all or nothing scenarios. You can start with a meaningful solution and build on its complexity over time.
A use case courtesy of myDevices drives home the point. The company performed an ROI analysis on a hospital’s food and nutrition unit, which utilizes 100 refrigerators. By law, the hospital is required to check and log their temperatures every four hours or six times per day, and it was paying nurses $65 an hour to do it. At just one minute for every temperature check/log, the hospital was spending nearly $240,000 annually.
The IoT solution – tiny sensors on all 100 refrigerators and a couple of plug-and-play gateways to handle data flow – cost about $12,000 per year or just five percent of what the hospital was spending.
The initial deployment was modest in size, but it wasn’t long before other department heads at pharmacy, lab and the OR got wind of what the food and nutrition department was doing. Today the hospital utilizes at least 500 sensors at a cost of several thousand dollars monthly – and it’s just one of 12 hospitals in the same health system. If the entire health system adopts IoT sensor technology, the deal could evolve into a minimum 5,000 sensors and probably include concierge/managed services on top, which would amount to an MRC of many tens of thousands of dollars.
Indeed, many organizations in healthcare, industrial warehousing, food and beverage distribution and hospitality industries are warming up to IoT technology because it offers incredible advantages relative to costs and staying in compliance. Moreover, these companies can start small with no capex or upfront investment, making it very low risk. And once they get a taste of IoT, they’re usually eager to expand and try additional use cases.
Indeed, after years of hype, IoT is getting very real – and you can get started by canvassing your own customers for cost-saving applications. Plus, if you need assistance with assessing potential IoT candidates and applications, you can lean on any number of experts for help. And if you need a referral, we have several. Just reach out to us.