What are the dynamics involved with the adoption and deployment of IOT solutions in Telecom enterprises?
The Internet of Things (IoT) has become more apparent and is advancing at an exponential velocity in recent times. From smart homes and connected cars to smart cities and wearable devices, IoT is changing individuals and enterprises. IoT is a technology that connects gadgets with an active network to permit data control and acquisition. It uses a communication protocol to generate a global network. With huge people steadily becoming connected to thousands of machines on the internet, coupled with tremendous data demands, telecommunication industries are confronted with both opportunities and hurdles in adopting and deployment IoT. It heralds the sector’s ultimate chance to either remain on the digital bandwagon or consign to being a minor bandwidth provider.
Top trends in IOT within Telecom Enterprises
IoT Solutions have Reached a Critical Mass in the Industry
Telecom industries has increasingly adopted and deployed IoT solutions in recent times for strategic planning purposes. In a survey, Internet of things enterprise survey conducted by Telecommunications Industry Association, Telecom companies perceive IoT solutions has reached a critical, making it a major concern in the telecom industry as a whole (Castonguay (2016). In the adoption of the IoT solutions, the same study reveals 48 percent of the telecom industry players are currently using IoT solutions to manage their business. Further, 48 percent inferred that their firms were appraising techniques to use IoT solutions in the next 2 years. This trend strengthens the fact that IoT solutions have reached a critical mass in adoption and deployment, and it is likely that by 2020, the solution will be a mainstream enterprise component in the industry. Moreover, while many Telecom companies have deployed insufficient IoT solutions, many of them are envisioning of blending existing IoT solutions in their firm’s business operations. Telecom companies are majorly converging on blending their legacy business systems with IoT in the next few years. This will entail allotting meaningful resources to guarantee success deployment. In fact, Nguyen & Simkin (2017) explains that they have earmarked huge IT resources devoted to the development and maintenance of IoT. This trend demonstrates the influence of IoT in the telecom industries and the significance of IoT change to unwind in the next few years.
Standard are Becoming Increasingly Important
With multiple technologies at hand, telecom businesses stress on the purpose of standards in the integration and configuration for IoT projects. The realization of IoT implementation necessitates standardized procedure in an effort to grow firm’s future processes, services as well as product. Castonguay (2016) avers that the innovation practice in the telecommunication sector has led to an explosion of connected appliances.
A EY report, Global telecommunications study: Navigating the road to 2020 shows that the growth of the mobile sector and the augmentation of the internet have made criteria a vital constituent in the telecommunication sector (EY, 2015). The prevailing standards used in the industry include Ipv6, LTE, and GSM. While these standards are essential, the bang of distinct devices globally, innovation and the market with IoT will need competing protocols, technologies and more standards according to EY (2015). Besides, the standards designed needs to be versatile and interoperable to align with the innovations. This will present comprehensive growth of IoT. Similarly, the telecom industry leaders will need to unify the fragmented nature of IoT aligned standards to expedite easier adoption of IoT solution in the enterprise.
Monitoring and Analysis of Product Performance will enhance IoT Adoption
Hubert (2015) illustrates that historically, the Telecom industries used machine to machine technologies in an endeavor to boost their returns, comply with available regulation as well as reduce operational costs. However, as IoT technologies have become general, intelligent and resilient, the firms have restored machine to machine point technologies and extended the utility of IoT data enterprises. Hudson (2016) avers while the firms have grown revenues and compressed operational costs for strategic purposes in adopting IoT, many reveals their strategic guidelines for embracing IoT are monitoring the performance of the product to increase service and maintenance efforts, and to examine data arising from IoT device performance so as to better future design ideas. Castonguay (2016) posits that Telecom companies are being driven by these goals due to the swelling value of the role performed by IoT. IoT data warrants the enterprise evaluates its products and services for feasible improvement.
Partnerships is Playing a Central Role
Motivated by challenges in security and implementation costs and IoT integration with legacy systems, Telecom companies embrace solution providers that present deployment support in the complete process in the service performance chain. Nguyen & Simkin (2017) show that partners readily provide extensive and hands-on services that involve system integrators and end-to-end service. Including heterogeneity of associates in the implementation process guarantees accelerated consolidation and able to access the market in a comparatively a short period of time. However, WEF (2015) points out that for firms to endure in the future, they will need to build their teams, partners, and assets so as to ensure a seamless end-to-end solution. This strategy will diminish complexity and difficulties associated with implementation and integration with the legacy systems.
IoT Objectives in the Telecom Industries
With the proliferation of devices on the internet, many companies view IoT as a solution due to its vast interconnection capacities. WEF (2015) points out that the future will see billions of pieces of equipment being connected to the internet. Thus, devices such as sensors, vehicles, and actuators among others will readily be accessible via the internet. Thus, enterprises intentions of adopting IoT solutions are anchored on the technologies network abilities, the quantity of devices connected and the connection it advances. Moreover, firms are motivated by the fact that IoT solutions offer information perception. According to Hudson (2016), IoT solutions stretch the conventional sensors that are restricted to a local environment to a more autonomous and collaboration of multiple sensors. This multiple collaboration help enterprises realize global reach. Additionally, Hubert (2015) explains that enterprises demand smart services, thus, IoT solutions, based on their vast interconnections promptly provide complete intelligent services enabling a business make informed decisions.
IoT Deployment Strategies in the Telecom Industries
Wang, Wan, Li, & Zhang (2015) explains that while firms take the lead in adopting and implementing IoT projects, in most circumstances, they seek the services third-party providers to assist the development and deployment of IoT technologies. A survey commissioned by Castonguay (2016) affirmed that 28 percent of companies involve system integrators as their top preference in executing IoT systems. Besides, firms also use a large pool of end-to-end implementers as trusted players of IoT partners. Enterprises prefer system integrators and end-to-end implementers because of their broad background and a wide category of tools. These tools are used to guide their clients through the complexities and challenges during IoT project implementation and integration with legacy systems. WEF (2015) avers that software companies are also involved in the deployment of IoT solutions. In fact, most enterprises favor SAP and Salesforce.com, underlining the importance of these businesses software platforms in enterprise services. Besides enhancing their own system integration services, the software firms help enterprises mitigate the challenges and complexities of IoT implementation and IoT solutions on behalf of the enterprise.
IoT Future Expenses in the Telecom Industries
It is expected that spending on IoT is estimated to expand in double-digit figures in the next three years. According to Castonguay (2016), enterprises are prepared to spend in areas such as transportation, manufacturing, and utilities. Hubert (2015) remark that although the overall spending on IoT will originally be controlled, industry players project that the spending on IoT projects will swiftly rise after 2020 as organizational transformation, scalable services as well as advanced skills increases to improve execution.
Besides, future spending on IoT will deviate from region to region. Wang et al. (2015) aver that each region of the world has novel requirements at distinct points and times. For example, Eastern and Central Europe, as well as Africa and the Middle East, will spend more on Smart buildings. On the other hand, Latin America, which boasts of the fastest growing IoT market, will concentrate on field service and maintenance.
IoT technologies adoption in the enterprises is on rising significantly as firms expand their understanding of the multiple benefits emanating from IoT projects. Currently, the majority of firms are embracing IoT, while others are in the process of planning to deploy the technology in the next few years. Owing to the number of companies which have implemented IoT project, it is evident that IoT will significantly contribute to the success of businesses in the future. Therefore, firms should embrace their own IoT strategy in order to improve their products, services and achieve a competitive advantage. To ensure successful IoT adoption and implementation, a firm will require support from the firm’s top management, embrace industry standards and involve third-party partners in the IoT project.
Other related articles on IoT: