IoT technology is evolving rapidly in terms of protocols, hardware, architecture, and frameworks for it. To make full use of IoT application development, it is essential to enlist a knowledgeable app development company. After all, McKinsey & Company states that:
“It’s important to analyze the types of complexity present in the company and remove any complexity that does not add value.”
From this perspective, outsourcing complex elements that do not constitute a core product is essential. Not only does complexity increase the costs of running a business, but it also hampers the execution and increases the chances of failure.
In this post, IoT development will be analyzed along with its challenges and impact on business.
Choosing the Right IoT App Development Company
Preserving your business focus on the company’s business model and value proposition is often the major reason for outsourcing other tasks such as IoT app development.
- If you are a hardware company, you may want to outsource the software bit. It will allow you to focus on the design and efficiency of hardware features to maintain your competitive edge. You may need to focus on the supply chain, expanding market reach, or enhancing proprietary components.
- If you are a software/SaaS company, you may choose to outsource hardware integration, connectivity solutions, or embedded software development. It will allow you to focus on developing core algorithms (AI/ML), enhancing UI/UX, working on your pricing strategies, and growing partnerships.
- If you are a service provider who seeks to integrate IoT (smart hospital, smart fleet, etc.), you might need to outsource IoT platform development and maintenance. Or choose to outsource particular bits such as introducing edge computing or embedding sensors. This will allow you to focus your business attention on core services, be it healthcare, transportation, and whatnot.
Outsourcing IoT application development is often considered a freeing step to achieving greater business success. The right IoT development partner will ensure compliance with regulations, scalability, reliability, and cost-effectiveness.
Understanding the Internet of Things (IoT)
The Internet of Things (IoT) is defined as all devices that enable data gathering, transmission, and analysis in real-time. This access to processed real-time data enables businesses of all kinds to make data-informed decisions to:
- improve efficiency,
- automate processes, and
- create new revenue opportunities.
And IoT can create revenue opportunities in a variety of ways:
- Hardware manufacturers can now much more easily establish a “power-by-the-hour” rolls-royce model. Basically, instead of a one-time payment for a device, clients are paying while the device is working based on IoT sensors.
- IoT-based SaaS subscription services that provide infrastructure for device management and data processing to achieve actionable insights.
- IoT application development business where a company can utilize existing SDKs for IoT sensors packed into phones or other devices. IoT mobile application development business often targets specific user use cases. They can range from health apps to energy savings to industrial and agricultural solutions.
Challenges in IoT App Development
While over 52% of businesses in the UK cite cybersecurity risks as a major challenge for adopting IoT, an IoT application development business UK such as BT covered almost the entire country with their smart city IoT solution. The company covered 97% of the population with sensors for the automation of tasks that previously required human presence for oversight and management. Therefore, while challenges are significant, IoT’s immense benefits are worthy of overcoming them.
Traditionally, two major challenges are data security and hardware complexity. However, the business challenge is that businesses find it hard to determine clear business models. Due to the novelty of the field, businesses don’t find it easy to develop revenue-generating strategies.
The Impact of IoT
IoT impacts are wide-ranging and gathered in the table below.
| Area of impact | Description | Business Impact |
| Transforming operations | IoT-enabled interconnected devices increase automation and provide a higher level of insight into operations and equipment. In many cases, it frees up personnel to deal with either more strategic or creative solutions. |
|
| IoT-enabled supply chains | IoT devices such as smart tags, RFID technology, and GPS tracking systems are being installed throughout supply chains. They target simple data such as location or environmental factors. However, they can also track and manage inventory levels and optimize delivery. |
|
| Customization of user experiences | IoT can be set up to track customer buying habits and behavioral patterns. In addition, wearables and other smart technologies are becoming more proficient in gathering other kinds of data. Altogether, user experiences are significantly improved in retail while in healthcare, it leads to better health outcomes. |
|
| Environmental sustainability | This is a less direct impact of IoT, but businesses and consumers benefit from IoT in terms of operational efficiencies, decreased energy consumption, and eliminating waste. IoT systems will grow and provide more intelligence and resilience for their users. This, ultimately, generates a range of efficiencies for the environment. |
|