Correctly calculate the ROI for your IoT project

You cannot deploy an IoT project without estimating the ROI. But companies lack the support to define all the criteria that should be considered according to the providers interviewed.

Checking the ROI of an IoT project is the first condition for a company to decide on its deployment. This topic popped up on everyone’s lips this fall during Sido’s global IoT trade fairs, “particularly because we’re at a tipping point where companies want to scale rather than multiply their POCs,” explains Guillaume Macaigne, IoT development business manager at Lacroix Impulse, a supplier French equipment for connected solutions. For Bernardo Cabrera, Director of Objenious, Bouygues Telecom’s IoT brand, the reason is “technological differences that allow for new projects, such as LTE-M”.

This is particularly the case in Suez, which is in the process of coupling a computer vision solution with the Internet of Things to improve quality control in waste. A prototype is tested for six months at one site to determine quality indicators, before the solution is rolled out at about twenty sites. “We compare the results of manual quality control with those through computer vision. To ensure the return on investment, it is also necessary to find the most suitable equipment” to convert videos received by cameras that have been trained, says Nicholas Cornet, head of the data engineering group in Suez, which was cheaper for him. Algorithms on it on the software platform, instead of buying a new model that is compatible with the RTSP video exchange protocol, which is more suitable for computer vision manufacturing.

To correctly calculate the return on investment, two main parameters must be taken into account: operational gains and the benefits of new services. “The first category, which includes time savings, breakdowns or lost items being avoided, is easily quantified during a trial period of less than three months and allows for 10 efficiency points,” notes François Dechellet, co-founder of Fabrique, publisher of a management solution. Industry 4.0 workshop. But the Internet of Things is not only improving flows and moving to SaaS mode with new services is an asset for companies to generate new revenue. “This computation remains more complex for customers because they are forced to make assumptions and ask themselves more questions about the gains that the Internet of Things will bring to the relationship with customers,” stresses Bernardo Cabrera, at Objenious, for whom the risk is to oppose this shift to improve operations. .

Expansion profitability

Companies generally have “the right way but do the supervision,” notes Pascal Vicat Blanc, CEO of Stackeo, who recommends clearly setting business goals for deployment. “For example, they omitted the change in cost and therefore profitability with expansion,” she continues. To help companies calculate ROI for their solutions, Stackeo launched in September 2021 during Sido its program that quantifies the economic and environmental impact of IoT solutions by modeling their entire chain and the benefits generated. A program that many customers like Terega already use to determine the appropriateness of using their pipelines.

Another pitfall: device management. Guillaume Macaigne of Lacroix warns: “We must not neglect the installation, it is a cost and then we should think about monitoring the maintenance in the operational state.”

“By preventing risks, it is possible to renegotiate the premium with your insurance, resulting in additional gains.”

But that’s not all, “there is what we see and what we don’t see,” stresses Frederic Noschi, co-founder of the Alizeus Internet of Things Design Bureau: “In a smart building, using sensors to avoid water leakage not only saves energy. By preventing these risks, , it is possible to renegotiate their premiums with their insurance, resulting in additional gains. Many hidden resources are found in public clauses.”

For the representatives who were asked, the fact that this topic is a real concern in the market indicates the need for advice and expertise. “Customers need strong partners who can advise and help them improve their deployments, in this period of economic crisis and component shortages,” believes Guillaume Macaigne. Objenious shared opinion: “Today, this support is one of the main expectations for IoT gamers,” says Bernardo Cabrera, whose creation of Stackeo illustrates this need. Datasulting, a consultancy in Montpellier, which specializes in evaluating company data, is organizing a webinar on ROI on December 14, 2021. Its president, Gaël Philippe, concludes: “We have discussed with different actors and we feel that the topic of ROI remains important to them, they are waiting for advice and comments.”

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