The Internet of Things (IoT), a system of interconnected physical devices, vehicles, home appliances, and other items embedded with sensors, software, and connectivity, is transforming industries. By 2025, over 29 billion IoT devices are forecasted to be active worldwide^1. As more companies implement IoT to modernize operations, the demand for IoT consulting services is skyrocketing.
A Primer on IoT and How It Drives Value
To understand why IoT consulting is critical, let‘s first look at what IoT is and its benefits for businesses:
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IoT involves placing sensors and internet connectivity into physical objects, allowing them to collect and exchange data. Common examples include connected machines in factories, smart meters, commercial trucks with telematics, and remote patient monitoring devices.
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This data generated by "smart" devices delivers valuable insights through analytics. For instance, industrial equipment can signal predictive maintenance needs. Fleet tracking provides fuel efficiency guidance.
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Companies deploy IoT to boost efficiency, productivity, safety and other metrics. McKinsey estimates IoT has a $4T to $11T global economic impact by 2025^2.
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Key benefits include: reduced downtime, optimized asset utilization, leaner operations, expanded services, reduced risks, and new data-driven business models.
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Top applications are in manufacturing, energy, transportation, building management, healthcare, retail, and agriculture^3.
In summary, IoT digitally transforms offline objects into intelligent assets, driving major business value through data-powered insights.
Why IoT Consulting is Crucial in 2024
IoT consulting provides companies the expertise they need to navigate IoT successfully. Here‘s why it‘s so important:
Many Companies are IoT Novices
IoT is still new and fast-evolving, with many uncertainties around how to implement it. 50% of IoT adopters say a lack of internal expertise is a top barrier^4. IoT consultants provide the missing knowledge.
IoT Requires Strategic Planning
A strategic roadmap is key to maximize ROI and mitigate risks. Consultants develop tailored IoT strategies aligned to specific business goals. They provide an objective outside perspective.
Technical Complexity Abounds
Building enterprise IoT infrastructure means integrating cloud services, network protocols, applications, APIs, analytics, and security. IoT consultants handle this complexity.
Security is Paramount
IoT introduces many cybersecurity risks that must be addressed proactively. Consultants perform risk assessments and build security into IoT architecture through technologies like blockchain^5.
Data Challenges Exist
IoT generates massive streams of data. Consultants architect sound data management frameworks from collection through to analysis and storage.
Adoption is Accelerating
IoT investment is growing at a 15% CAGR, with spending forecast to hit $1.2 trillion by 2022^6. Consulting help is increasingly in demand as adoption rises.
With IoT permeating more business functions, most companies lack the skills to implement it effectively on their own. Partnering with seasoned IoT consultants is becoming essential to success.
Typical Activities of IoT Consultants
IoT consultants are involved throughout your entire solution lifecycle, from upfront strategy through execution. Some key activities include:
Scoping and Planning
- Conduct baseline assessments of your infrastructure and operations to inform IoT planning.
- Research your industry landscape and identify potential use cases.
- Perform cost-benefit analysis and ROI projections for proposed initiatives.
- Develop tailored strategic roadmaps and phase-based rollout plans.
Architecture and Design
- Design end-to-end IoT architecture encompassing devices, connectivity, data collection, cloud services, apps, analytics and security.
- Select optimal connectivity protocols like WiFi, Bluetooth, LTE, or 5G based on device types and use case.
- Model how data will flow through the infrastructure to meet business needs.
- Design IoT applications, dashboards, and data modeling.
Implementation and Integration
- Integrate new systems like IoT platforms and machine learning tools into your environment.
- Build custom interfaces between IoT infrastructure and legacy systems.
- Develop APIs to connect components and share data.
- Test end-to-end functionality and DevOps processes.
- Deploy solutions onto hardware devices and cloud infrastructure.
Data Engineering and Analytics
- Design data pipelines to ingest, process, and store IoT data at scale in cloud or on-prem databases.
- Develop models and business logic to extract insights from IoT data through dashboards and analytics tools.
- Establish feedback loops so insights trigger actions like alerts.
Cybersecurity
- Perform risk assessments to identify IoT-specific threats like Distributed Denial of Service (DDoS) attacks.
- Architect security controls into the IoT stack covering devices, gateways, cloud services, and applications.
- Employ technologies like blockchain and digital twins to implement security across hardware and software components^7.
Ongoing Management
- Continuously monitor performance and address issues.
- Support solution administration, troubleshooting, and enhancement post-launch.
- Offer training to ensure your team can operate the solution.
This end-to-end expertise makes consultants invaluable partners in unlocking IoT‘s full potential.
Key Types of IoT Consultancies
Many types of consulting firms offer IoT services. Below are the major players:
Big Management Consultancies
Major strategy consulting firms like McKinsey, BCG, and Bain help develop IoT vision, strategy, and business cases. They focus on upfront strategic planning and use case identification more so than hands-on implementation.
Specialist IoT Consultancies
Boutique firms like Cascade, Chetu, HQSoftware, and MobiDev offer end-to-end IoT consulting from architecture to analytics to cybersecurity. They have deep technical expertise across the IoT stack.
Market Research Firms
IoT research firms like Beecham Research and IoT Analytics produce reports on vendor landscape, technology comparisons, market trends and best practices to guide client strategy.
Global IT Services Firms
Large IT services companies like IBM, TCS, Infosys, and Wipro provide comprehensive IoT consulting and implementation around cloud, analytics, apps and security.
Hardware/Software Vendors
Many technology vendors have IoT practices to support implementation of their products. For example, Microsoft Azure IoT services help deploy the Azure stack.
This variety provides clients flexibility in choosing an IoT partner aligned to their needs. Below we explore what to look for.
How to Select Your IoT Consultant
With so many options, identifying the right IoT consulting firm for your needs takes careful evaluation across a mix of criteria:
Industry Specialization
Seeking experience in your vertical allows consultants to tailor solutions to your environment and use cases. For instance, IT consultancy HQSoftware has expertise across manufacturing, energy, and transportation clients.
Technical Capabilities
The firm should have proven skills across IoT architecture design, device integration, cloud platforms, networks, analytics, and security. Look for sophisticated in-house talent.
Methodology and Best Practices
Mature consultants follow defined protocols and frameworks to guide engagements. Cascade Solutions has a structured IoT consulting methodology spanning strategy through execution.
Tooling and Accelerators
Leveraging pre-built frameworks and tools accelerates delivery. TCS has an IoT Solutions Launchpad with device simulators, reference architectures and IoT platform integration accelerators.
Vertical Solutions
Some consultants offer pre-packaged IoT solutions tailored to specific industries that can be reused. IBM has industry-specific IoT solutions like connected logistics for supply chain.
Vendor Agnostic
Beware consultants who push proprietary technology or certain vendor partnerships. Independent consultants provide unbiased recommendations on the optimal tools for your needs.
Global Delivery Model
For large deployments, choose a firm with development/delivery centers worldwide to access sufficient talent cost-effectively. Infosys has IoT development labs across Europe, Asia and Americas.
Customer Success
Case studies and client references validate real-world performance. Wipro helped steel manufacturer Tata Steel cut costs 30% with IoT in their factories.
Breadth of Capabilities
Some firms like IBM span strategy, design, technology consulting and managed services. Others focus solely on strategic advisory. Choose alignment to the scope required.
Evaluating consultants on these criteria helps uncover the right fit for your IoT initiatives and objectives.
As an experienced IoT consultancy, we‘re ready to guide your organization on this journey to drive meaningful business outcomes through connected devices and data. Get in touch today to start a discussion and learn more about how we can collaborate to maximize your IoT success. The future of business is connected. Are you ready?