Measure and validate
your success
Not every project will be a game-changer, at least not initially. Use the metrics
to assess the payback, identify what worked and pinpoint any problems.
Then figure out what you will do differently on your next IoT effort. At the same
time, use the metrics to fine tune your infrastructure and partner ecosystem.
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What next?
Select your next IoT project to leverage the skills you developed with your first project. Or, look for one of the fast payback projects noted in ‘Building the Internet of Things’, Chapter 5. Beyond that, look for situations in your organization that touch on pain points and use IoT to reduce that pain.
IoT delivers its biggest payback when it
involves processes in which it can reduce or
replace manual labor, or where it generates
results that lead to increased revenue,
increased customer retention or satisfaction,
or even new customers.
Essential next steps
Example ROI calculation based on actual and planned value of your IoT project
Widely communicate the success
of this initial project throughout
the organization.
Give praise to your ecosystem partners and thank them; don’t hesitate to share the glory of a successful project.
What obvious follow-up projects cropped up the course of completing this project?
Ask your ecosystem partners what types of projects they would like to do next.
Ask your management sponsors what they would like to see next.
Make a list of possible projects and go back to the start by assessing skills and readiness for the next projects.
Begin collecting the cost and payback information.
Labor efficiency:
Planned
ROI
Actual
ROI
Increase productivity $ 87,360.00 $ 120,120.00
Reduce field operations time$ 87,360.00 $ 65,520.00
Accelerate resolution $ 23,660.00 $ 94,640.00
Remote service and support $ 32,760.00 $ 98,280.00
Other $ 43,680.00 $ 32,760
Labor Efficiency Total$ 274,820.00 $ 411,320.00
Operational efficiency:
Planned
ROI
Actual
ROI
Reduce costs $ 29,120.00 $ 72,800.00
Higher profits $ 87,360.00 $ 174,720.00
Accelerate time to market $ 182,000.00 $ 1,274,000.00
Less downtime $ 910,000.00 $ 1,092,000.00
More uptime $ 29,120.00 $ 43,680.00
Higher quality $ 72,800.00 $ 72,800.00
Actionable insights $ 29,120.00 $ 87,360.00
Operational Efficiency Total$ 1,339,520.002,817,360.00
Operational efficiency:
Planned
ROI
Actual
ROI
Real-time data $ 364,000.00 $ 728,000.00
Remote monitoring $ 121,333.33 $ 121,333.00
Predictive analytics $ 72,800.00 $ 109,200.00
Other $ - $ -
Streamlined Business Total$ 558,133.33 $ 958,533.00
Revenue enhancement:
Planned
ROI
Actual
ROI
New go-to-market strategies $ 10,000.00 $ 40,000.00
Remote service and support $ 10,000.00 $ 10,000.00
Data as a service $ 10,000.00 $ 0
Increase uptime $ 10,000.00 $ 10,000.00
New customer acquisition $ 10,000.00 $ 20,000.00
New products/services $ 10,000.00 $ 20,000.00
New business model $ 10,000.00 $ 20,000.00
Other $ 10,000.00 $ 10,000.00
Revenue Enhancement Total$ 80,000.00 $ 130,000.00
Other:
Planned
ROI
Actual
ROI
Other: $ 10,000.00 $ 10,000.00
Other Total$ 10,000.00 $ 10,000.00
TOTAL$ 2,262,473.33 $ 4,327,213.33
Use the interactive ROI
calculator tool on the ‘Building
the Internet of Things’ website,
maciejkranz.com
Implement & scale | Step 13