As per IoT analytics, the shift from non-IoT to Industrial IoT devices has been quite noticeable over the last decade, which predicts that 75% of all devices will be IoT-enabled by 2030.
Looking through the eyes of OEMs, they need an industrial IoT solution that goes beyond cost-effectiveness and enables them to maintain sustainable growth with a streamlined business model transition.
One of the most common approaches to this transformation is in-house IoT application development. However, building an in-house IoT application is no joke; it requires highly skilled resources, extended time (2-3 Years) to build just the platform, and then a soaring budget (4-5 Million USD) to complete the project.
How Does the 80/20 Rule Apply to Investment for Developing Industrial IoT Applications?
A Cisco survey indicates that 74% of organizations get stuck halfway while developing their own Smart Industrial IoT Applications. Majorly, they end up spending 80% of their budget just on the microservices development phase, leaving with only 20% of their budget cost for application design, development, deployment, and maintenance. If we estimate the Total Cost of Ownership for industrial IoT Adoption at OEMs, it will be nowhere less than 4 to 5 Million USD; this is just the cost of building and launching a production-ready smart product application like Asset Performance Management (APM).
Additionally, this technological journey is fraught with challenges, from ensuring the quality and availability of crucial data to navigating the complexities of integration with existing systems. These costs, resources, and effort investments make building an in-house IoT platform a not-so-good choice for OEMs. It needs secure, scalable, fault-tolerant, cloud-agnostic, and multi-tenant IoT software solutions like Device Management (DM), Asset Performance Management (APM), Asset Remote Monitoring (ARM), field ops solutions, and more for a successful Business Transformation through industrial IoT.
Moreover, the need for specialized expertise, the substantial costs associated with infrastructure, and the ongoing need for meticulous monitoring and maintenance add layers of complexity to industrial IoT app development. The immediate return on investment (ROI) may remain elusive as organizations grapple with these hurdles. It necessitates a strategic and measured approach to extract optimal value from these transformative technologies.
But then, what could be a better alternative? How to get a customized, advanced, and business goal specific industrial IoT platform?
Maintaining the Business Pace within A Budgetary Space with OEDC
While discussing industrial IoT application development, three major opportunities that exist are In-house Development, IoT Platform, and OEMs’ Enterprise Domain Cloud (OEDC).
As we discussed, OEMs may suffer with cost, resources, and effort when developing an in-house IoT application. On the other hand, the traditional methods basically involve buying a pre-built platform and using it with limited features and without customization options. As per Dynaway’s research report, the biggest reason for failure in business transformation is the lack of customization options. Contrary to both methods comes the enterprise domain cloud-based solution.
An OEDC platform like Flex83 comes with pre-built microservices essential for industrial IoT application development, and it also offers the flexibility to customize and scale (to millions of devices) as per business needs.
The idea behind IoT83 is inspired by the 80-20 rule or the Pareto Principle. Our OEDC Platform, with its streamlined application creation approach, enables OEMs to start with an effect of 83% of solution completeness, with 17% of work remaining dedicated to OEM-specific application differentiation and business value creation.
*100% Industrial IoT Application Success means faster time to market, reduced CapEx, smart enterprise-grade scale on the go, full deployment flexibility, higher competitive advantages, complete IP ownership, Zero Technical Debt, No Vendor Lock-in, and a lot more.
Why Choose “Buy and Build” to Accelerate Industrial IoT Growth?
Build connected products that deliver more excellent value and improve the customer experience with OEDC, a “buy and build” approach with business outcomes. Equipment manufacturers can create and scale a successful solution for users, breeding success with industrial IoT initiatives and gaining more support for future initiatives, from newly connected product lines and digital services to new businesses incorporating Equipment-as-a-Service.
OEMs can leverage the true capabilities of a ready-to-use ‘out of the box’ platform that incorporates the best build-and-buy strategy. This allows the organizations to focus only on building the remaining 17% of the application logic with expert developer assistance from the technology partner.
Therefore, it allows OEMs to focus on accomplishing business goals without investing too much time, budget, and resources in developing the foundational elements. An OEDC platform enables OEMs to build smarter product lines through first-class and uniquely specialized applications like Asset Performance Management (APM), Field Ops, Asset Remote Monitoring (ARM), and Subscription-based Equipment-as-a-Service Model.
Akhil Arora, VP Sales at IoT83
Akhil, the VP of Sales at IoT83, brings a wealth of experience in financial and business solutions, fostering a results-oriented approach. Renowned for his ability to pinpoint digital gaps, Akhil guides operational and product management teams toward competitive advantages in Industrial IoT Asset Performance Management Solutions.
His expertise lies in crafting transformative digital journeys, ensuring clients experience substantial and lasting value creation. Akhil’s strategic vision significantly contributes to the continued success of IoT83’s sales endeavors.
