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IoT's Value Comes When it Disrupts Business Models

07/30/2014 by: The SunView Team

Cisco estimates that the number of devices connecting to the Internet in 2020 will hit 50 billion as the Internet of Things movement takes hold across a variety of sectors. Dealing with the volume of devices and the various ways to use them could create major challenges in enterprise IT departments, but what could be more difficult is the way these technologies impact business.

The IT service desk is at the forefront here, as efforts to make technology work well for business users is a critical part of any support team's role. This means ensuring that IoT technologies work so well that the incidents, problems and other issues do not get in the way of end users. Finding success in this is essential because IoT strategies won't succeed unless organizations are able to disrupt their business models by relying heavily on IoT functionality.

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The IoT and business disruption
According to a recent InformationWeek report, IoT deployment in the enterprise isn't really that big of a deal from a purely technical point of view. Devices aren't particularly expensive, they don't cost too much to install and organizations are already dealing with strategies to support smartphones, tablets and similar connected solutions. As such, transitioning to the IoT isn't a huge technical leap. However, a fully-featured IoT framework can enable organizations to disrupt their business models and drive revenues in new ways. This is where the IoT truly creates its value.

Industry expert Andy Groves told the news source that the IoT is a technological movement that is set to entirely alter business models in the enterprise sector.

"Disruptive technologies is a misnomer [for IoT devices]," Groves told InformationWeek. "What it is, is trivial technology that screws up your business model."

IoT solutions are becoming more accessible all the time, but the physical devices are only going to create value if organizations implement the applications, APIs and software solutions that will enable the IoT to change the way companies get the job done.

Getting the IT service desk ready for IoT disruption
The problem with using technology to disrupt business is that it makes the organization more dependent on IT. If business models are built around IoT functionality, then any malfunctions with apps or services will get in the way of productivity.

Organizations that want to use the IoT to revolutionize their business functionality must be prepared to invest in the advanced IT service management solutions that will enable them to deal with the volume of devices and complexity of services that go hand in with the IoT.