IoT: How to Create New Business Opportunities Using Connected Products

What business opportunities can we create using IoT? We sat down with our business consultant, Anders Iderot, who has extensive experience with various IoT projects. He’s helping us understand and define the concept of IoT, the Internet of Things.

Can you tell me a little about the IoT—what is it?

– You could say that IoT stands for the Internet of Things. It means that objects in our daily lives are connected and generate data that we can then use, for example, to track how much electricity we consume or to determine when our lights should be turned on or off. Companies can also use IoT to generate new insights, business value, and entirely new business models that were previously impossible by utilizing data from things like vehicles and machines.

What business opportunities are there?

– With the help of IoT, you can automate processes and create new business opportunities based on specific use cases and needs. For example, a machine might send signals indicating its condition and what needs to be addressed before it breaks down, allowing a sales representative to take proactive action by calling and scheduling a service appointment. In other words, you can base an entire sales process on actual data, and I think that’s the biggest opportunity—that we can grow our customers’ businesses through actual data.

Why do you think the IoT is in such high demand? Why do companies want to work with it?

– I think there are several factors at play here. One reason why there’s such high demand for this work is that it’s a major trend right now, and many companies often want to jump on trends to position themselves at the forefront. Another reason is that it unlocks new business value with customers that wasn’t previously accessible.

Are there any challenges associated with IoT projects?

– A common challenge in an IoT project can be the data, which needs to be more or less perfect. In an IoT project, you need to get to know your data and understand it in order to create new business opportunities or selling points. If you don’t have the right data or base your business processes on the wrong data, there’s a risk that you’ll contact your customers at the wrong time and with the wrong offer.

– Another challenge many companies face here is refining and constantly improving their sales pitches so that the sales team can act proactively and reach out to customers at the right time with the right offers. It can take time to get an IoT project right—that’s why it’s important to remember that you have to actively work on your sales pitches to ensure everything goes smoothly.

How has Releye been working with IoT? Can you give some examples?

– We provide an IoT solution to our client Ferronordics Machines, where we collect data from their machines and vehicles that shows how the machines are being used, when parts need to be replaced, and how many miles they’ve traveled. Based on that data, we’ve helped their sales team create touchpoints with customers. For example, we might receive a fault report from a machine indicating that an oil filter needs to be replaced. A sales representative can then act on this signal by calling and scheduling a service appointment. These are examples of how we work with IoT solutions for a number of dealers, including Ferronordics Machines and Volvo.

– Another example is our client Heidelberg Cement, where we’ve implemented a system that shows where and when a concrete delivery will take place, so that the site can prepare to receive the delivery truck. These are examples of how we’ve worked with IoT in the past; today, as mentioned, it’s primarily in the aftermarket sector that we’re working on exciting IoT projects.

What results have our customers achieved?

– Our customers, such asFerronordics Machines, have successfully generated sales momentum by utilizing data from their machines and vehicles. Today, they are able to provide a unique service by offering customers what they want before the customers even realize it themselves.

Please contact us if you'd like to learn more!