IoT project: 10 steps to success

Cut costs, increase sales, boost productivity. These are targets that can be achieved with a well thought-through IoT project. Ten steps are key to a successful start on the Internet of Things.

Be it in manufacturing, retail or logistics, the Internet of Things (IoT) offers enterprises great potential across the board. But implementation still presents problems. In a survey undertaken by secunet and techconsult only around one company in ten claimed to have realized IoT projects comprehensively. Plans were reportedly hampered mainly by uncertainties about data protection and IT security, by a lack of know-how and by the need for integration into existing IT environments.

IoT projects are indeed often complex, not least because they should always be individually coordinated with existing business models and processes. Yet companies must not and should not capitulate to the challenge. This article shows how you can implement your IoT projects successfully step by step.   

There are many reasons to start an IoT project: reducing costs, offering new service models, or advancing your digital transformation are just a few examples. But don’t try to solve all challenges at once. Especially for companies with no previous experience in the Internet of Things, it can be difficult to focus on a single task. It makes sense to work with a reliable partner early in the development process. When choosing such a partner, practical experience in the IoT field is particularly important. Experienced partners like Telekom, for example, have an overview of various scenarios and know how to solve different challenges with a broad range of products.  

As soon as a company has identified and defined a challenge, such as not having an overview of the supply chain, it should specify the right application scenario precisely. Scenarios for networking machines and things will be found along the entire corporate value chain, from logistics and production to marketing and customer service. Firms should focus on a specific use case and define a clear target. IoT solutions are multilayered and must be integrated into the company’s overall strategy, starting with the right IoT tariff. Is the solution to generate low data and energy consumption? Then LPWA tariffs with NarrowBand IoT (NB-IoT) or LTE-M will be an option. Are larger quantities of data to be transmitted? In that case M2M (machine-to.machine) tariffs with a high data volume are more appropriate. Service level agreements (SLAs) on, say, network reliability are another factor to be borne in mind. In order to make tariff and other decisions with the future in mind an early application scenario specification is a decisive step. And, importantly, companies must not forget their customers and the customers that they in turn serve.

When launching new technologies it is important to actively involve your employees in the process. Digital transformation can only succeed if they understand why the technology is essential for the company’s success and that it will also help them to do their work. Your aim is to integrate the solution seamlessly into the day’s work. To ensure that everything runs smoothly it is best if trained management personnel lead employees gently to the new project and the unknown technology.

According to secunet and techconsult only one company in four they interviewed feels able to realize IoT projects under its own steam, as it were. That is another reason why it is important to involve your employees intensively at an early stage. In that way existing know-how can be bundled and new knowledge better established. It is also why setting up a team to work solely on the project makes sense. In the best case its members will have previous experience of IoT or networking. It is otherwise worth offering training courses on the subject. This first major expense will bear dividends in the long term when scaling the project and launching further IoT solutions are on the agenda.

Ideally the first IoT project and the work it involves will be of lasting benefit. So companies ought from the outset to consider which use cases and requirements might arise in the future and take care to ensure that devices and software can be used in subsequent projects, starting with the choice of IoT SIM card, If, for example, the hardware might conceivably have to function in difficult environmental conditions the right SIM card should be integrated from the start. An embedded SIM (eSIM) soldered directly as a tiny chip onto the communication unit’s printed circuit board would be an option, as would an industrial SIM. Both are especially robust and temperature-resistant.

Choosing the right platform is most important, especially in view of the company’s future IoT plans. To avoid later problems or unscheduled additional expense it should be suitable for other future IoT projects. Cloud-based IoT platforms like Deutsche Telekom’s Cloud of Things that are constantly upgraded by the providers are a good choice. Telekom’s platform is available in three versions and can thereby be adapted to meet individual requirements. Initial tests will show whether the platform matches the company and its IoT environment. Employees can at the same time familiarize themselves with the new platform and will know how to implement subsequent projects in the IoT environment.

To generate clear statements and findings about the IoT platform the right data is essential. If, for instance, there is a challenge to cut costs along the supply chain you will need to define where that is to happen, such as in transit or in the warehouse. Data collected by connected devices like low cost trackers can inter alia reveal digitally whether the routes of delivery vehicles are efficient enough. This data can also help warehouse staff to locate goods faster. An experienced IoT partner can offer advice on how companies can reduce costs most effectively with which technology.

Optimal connectivity is the basis of a successful IoT project because everything is connected on the Internet of Things, but not every technology is suitable for every use case. Companies should establish as early as possible which transmission standard they need for their IoT devices. That will depend in particular on how much data is to be transmitted via the network how frequently and from where to where. If, say, the device is in a basement, good building penetration is important. If data volumes and transmission frequencies are low and the hardware is to be as maintenance-free as possible, NarrowBand IoT (NB-IoT) is the solution. It is an especially energy-efficient standard so that IoT devices can run on it for several years on one battery. If, in contrast, large data volumes are to be transmitted frequently, 4G or LTE and 5G are more suitable. In addition, 5G facilitates latencies of less than a millisecond, which is a prerequisite for safe navigation of autonomous transport robots.

IoT solutions are regularly targeted by cyberattacks. According to the Sonicwall Cyber Threat Report 2023 there were up to 13 million attacks per month in 2022. That is why, just like in choosing the right platform, it is important to define and implement from the outset security standards that will also protect subsequent projects from risks. The more autonomous IoT devices a company uses, the greater the risk of vulnerabilities. Ensuring security with hindsight costs time and money, not to mention possible damages if the worst comes to the worst. IoT security measures can, for example, include a mobile IP VPN if the IoT devices communicate via the cell network. The connection is then shielded from external attacks. Two-factor authentication also makes IoT projects safer.

If all the previous points have been taken into account and the IoT project is ready for rollout, constant checks are important. Is the project running as envisioned? Are all internal processes networked and functioning as expected? Fundamental or long-term objectives must also be borne in mind. Is the company achieving the projected added value for itself or its customers? If the answer to questions of this kind is a consistent “yes” the next step can be successful scaling of the IoT project.