The Internet of Things (IoT) isn’t yet here in full force, but it’s coming and fast. Service providers looking to capitalize on what could prove to be the key tech trend of the decade are going to have to extract actionable strategic insights from the massive amount of data the IoT will generate. They’re also going to have to absorb this data on the fly, mitigate bandwidth demands, and respond quickly to emerging trends or risk being bested by nimbler, more adaptable competitors.

“Fail fast and fail often” is one of the tech industry’s most common catchphrases, and it will certainly apply to the IoT. In this rapidly evolving industry, mistakes often yield insights that illuminate the path to success.

Building a Successful IoT Service

The benefit of failing is that it helps service providers move more quickly toward superior delivery models. A model that fails slowly over a protracted period of time can signal a downfall in the tech industry.

With that in mind, here are four important principles to draw on during the experimental phases of an IoT service delivery model:

Take a loosely coupled approach. Loosely coupled systems offer two key benefits to service providers tinkering with delivery models.

• First, they allow service providers to experiment with delivery components on a one-by-one basis, rather than investing in system overhaul after system overhaul.
• Second, they also provide a framework for extracting the same function from disparate components when needed, which makes it easy to test new approaches without eliminating existing ones.

Consider hosted services. Using hosted services is an excellent way to stay nimble and flexible in the somewhat volatile and rapidly changing IoT environment. This approach allows providers to learn the ins and outs of new technologies before deciding whether or not to incorporate them into service plans and business models.

Use API layers to guard against interruptions. API layers are ideal for neutralizing the effects of system interruptions. This strategy also makes it easier to move existing components over to updated or newly emergent platforms.

Release functions to customers in increments. Rather than going all out with service launches, experts recommend that providers release functions bit by bit whenever possible. Collect user experience data on the incrementally released functions, then use the feedback to fine-tune hosted services. This will make optimizing things easier, more efficient, and less costly.

One big benefit of the current technological landscape is that it’s easier than ever to collect and analyze data. Companies that take a step-by-step approach to service development by leveraging analytics features will enjoy an inherent competitive advantage that could prove to be the difference between long-term failure and success.

Contact us today if you want to learn more about how you can adapt your business to the IoT service delivery model.