How to maximize ROI from your IoT connectivity

So just what factors do you need to consider when assessing the return of investment (ROI) from your IoT connectivity? And how can you help maximize it?

When weighing up the potential ROI, it’s important to keep a total cost of ownership (TCO) perspective from the start. Look beyond up-front costs like hardware or initial connectivity to potential added costs that could arise as you scale your business or need additional services. 

No two IoT solutions are identical, but after years of helping customers with IoT connectivity across a wide range of verticals we see recurring questions that need to be addressed to gain the best ROI. Particularly when it comes to the long-term feasibility, accessibility, and security of your IoT solution.

Measuring the true cost of IoT connectivity: balance upfront investment with long-term benefits 
 
One of the first decisions to make when connecting your IoT solution is whether to opt for connectivity running on an unlicensed spectrum like LoRa, SigFox or WiFi, or connectivity that operates on a licensed, managed spectrum. 

Unlicensed solutions sometimes have lower up-front costs, but spectrum is a finite resource, and competing in an unmanaged spectrum with other proprietary technologies comes with the potential downside of a higher failure and resend rates due to an inability to guarantee bandwidth. While these solutions offer flexibility, they also risk potential interference from other devices operating in the same frequency bands.

There can also be uncertainty about maintaining connectivity when a device is in motion, and devices may need to reconnect if their location changes. Slower data transfer processes or unreliable connectivity can disrupt operations or risk loss of data effective customer experience and impacting ROI. 

Using a managed network with a licensed spectrum ensures less competition for bandwidth and provides a ubiquitous network covering a wide geographic area with minimal gaps in connectivity, increasing reliability for you and your end customers.

Customise your IoT solution to boost potential ROI
 
IoT use cases and their specific needs vary widely, so it’s worth taking the time to build a well-planned solution before rollout. This is more efficient in the long term than rushing to launch and then resolving unforeseen issues, which can be costly, both in time and money. 

Key decisions on granular variables can significantly impact your ROI. For example, consider a solution using connected thermometers to send temperature readings. Instead of sending readings at defined intervals, configure the devices to send readings only when they detect a temperature change. This saves data and battery power, by avoiding unnecessary data transfer and processor activity, reducing data and maintenance costs. Longer battery life minimizes the need to manually swap out batteries. 

Read more about how Low Power Wide Area IoT connectivity helps preserve battery life

Other variables also impact the effectiveness and efficiency of your rollout. Depending on the location of your devices and whether they may be placed indoors or even underground, getting the right connectivity penetration from the start can save valuable installation time and minimise the need for extra antennas.

Leaning on a trusted operator with experience and a broad range of technologies for building a variety of IoT solutions is an important investment. But choosing the right IoT connectivity partner is not just about technical capabilities – it’s also about building a long-term partnership that can support and develop your solution over time. IoT solutions often span ten years or more, and it is crucial to have a partner who works closely with you to adapt and improve it as your needs and technological advancements evolve. Allowing you to focus on what is valuable to your IoT business instead of putting time and resources addressing these questions. 

Licensed spectrums and over-the-air (OTA) updates bring extra security and reliability
 
Unlicensed spectrums are not subject to the same security standards as licensed spectrums, increasing the risk of unauthorized access to network-connected devices and the information they generate. This can translate to potential costs related to security breaches and compliance issues. Network disruptions affect end users, leading to lost customers and other larger problems.

A reliable, secure network means happier customers and less time and money spent on investigating disruptions. Modern technologies allow over-the-air (OTA) security and firmware updates without physical maintenance visits, maximizing device lifespan and reducing cost in total.

Ease of scale and future-proofing long-term ROI of an IoT investment 
 
Building an IoT solution with older network technologies might work short-term, but future-proofing your connectivity can yield long-term ROI benefits. IoT-specific network technologies like NB-IoT, LTE-M, or 5G won’t disappear soon, while offering greater efficiency and a platform for continued innovation and product development. 

Modern IoT technologies can be paired with a connectivity management platform, providing accurate visualizations of costs and data use. Alerts can help you manage data usage and avoid unwanted extra costs from exceeding your data limits. Having a central source of truth for your devices’ data makes management at scale easier, reducing admin hours. 

Choosing a standardized connectivity solution with modern network technology and a harmonized connection process facilitates scaling as you expand to new markets, reducing costs and generating revenue quickly.

Read more: Nice IoT solution, but how long can you live with it? 

IoT connectivity choices that drive IoT success and ROI
 
Choosing the right IoT connectivity solution is vital for the success and ROI of IoT deployments. By carefully evaluating the specific needs of your IoT application, considering both initial deployment costs and ongoing operational expenses, understanding battery life implications, ensuring scalability with your business growth, and assessing security features to protect your data, you can make informed connectivity choices that drive efficiency, reduce costs, and maximize the value of your IoT investments.

Are you interested in in how we can help you gain more value of your IoT, get in touch with us. 

You might also be interested to read: Five business benefits of upgrading your IoT to LTE or 5G.