The Evolution of Internet of Things: New Business Models Need Interoperability

Most of us own a multitude of personal, interconnected devices which we rely on for daily activities

From smart phones and tablets, to interconnected household appliances, nearly everything can be controlled by the touch of a button or with voice control. An inevitable by-product of multiple connections are numerous passwords and codes to secure our devices. When can we expect to be interconnected and control everything from a single device or app?

Until now, the reason we have not realised much interoperability is due to the time and cost it takes for each single-use case to be negotiated, agreed and then created between the product and service provider. By the time companies collaborate on one Internet of Things (IoT) connection, consumers demand something new – and this is a trend that will continue. Single use case devices continue to dominate the marketplace because the levels of collaboration in the industry have proven complex and costly for device and service providers.

To unlock the true potential of IoT, companies must create new business models where consumers and businesses are able to benefit from the seamless connectivity of one device to many.

The cost and complexity of IoT

The predicted rate of connected devices growth that is often cited by Gartner, Deloitte and others, is based upon the proliferation in data and the effect this rate of growth will have on businesses and the number of new businesses that will be created. But, if the current trend of single-use case IoT solutions continues to be siloed, these predictions for connected devices growth may not be realised.

Open APIs between product and service providers are the key technology towards resolving this issue. But, businesses still face the challenge of maintaining 1-1 APIs with four or five partners. That is simply too expensive and time consuming, particularly for smaller businesses, to maintain. Simply managing the connection between one partner will result in maintenance costs that, as a business with tight margins, might not be viable to continue.

Gartner predicted 75 per cent of IoT projects will take twice the time allocated to be accomplished, because of the increasing complexity associated with developing this connectivity. So what is the solution?

Harnessing the true potential of IoT means New Business Models

There are ways for IoT-enabled businesses to continue developing their offerings and stay up to speed with the demanding consumer. First, businesses must accept that the true potential of IoT doesn’t necessarily lie in selling more and more devices. The long-term potential is value-added services based on harnessing the data that is already being produced.

For instance, a top-rated fitness device is already producing data on the wearer’s location, ultimately allowing it to track the user’s fitness levels and rate at which they work out, and also providing data on the user’s whereabouts. In winter, this additional data could be used to alert the user’s house lights to be turned on when they near their home, their oven to turn on ready for dinner and their coffee machine to turn on ready for a hot drink after a cold journey from work. That is why a shared marketplace becomes the best option for various IoT service providers to collaborate and utilise each company’s data.

I work for an innovative company called mozaiq that offers a unique IoT platform for fast interoperability between product and service providers, connecting multiple devices with services behind the scenes. The one to many connectivity is uniquely available through mozaiq’s Use Case Designer that creates the logic for bi-directional one to many connections and reduces the burden of development for businesses. There are no partner contracts to negotiate or manage and data is secured.

An interoperable approach to IoT, combined with a shared and open marketplace, will help businesses to collaborate easily and eventually allows them to truly harness the potential of IoT. The Internet of Things business model becomes the business norm, rather than an idealistic future.

About the Author

Jennifer Canale, is Sales Director at mozaiq. Leveraging the exciting opportunities of the Internet of Things for consumers and companies alike, mozaiq is the ultimate online marketplace. With minimal effort and guaranteed unconditional interoperability, mozaiq is designed to bring device vendors and service providers together and to connect any device with any service