When Internet of Things and Big Data talks become a huge concern, Businesses are starting to jump in the same concern. Whether it is because of the big money or the value itself, Big Data and Internet of Things are the new “partner in crime” of digital era.
Companies are either using the Internet of Things to become more efficient and productive or using the data to create new value. No matter the industry, most experts say nearly every business is now essentially a tech company – from Goldman Sachs Group (GS) announcing it was a technology firm with financial services to automakers applying for autonomous-driving patents.
“The strategies and the choices companies are making right now will absolutely decide winners and losers in marketplaces,” says Nick Kramer, senior director, data and analytics who specializes in IoT at SSA & Company, a consulting firm in New York. “It’s important to care about the Internet of Things and care about the company’s strategy when you are considering an investment.”
IoT can affect almost every segments of business. Manufacturing, health care, logistics and consumer electronics are all big players.
“It’s less glamorous, but they are probably taking greater advantage of it than anybody else,” says Kramer, who was in Hanover, Germany, helping a manufacturing client implement Internet of Things technology and strategy into its supply chain, logistics and product development.
Internet of Things not only comes in Business to Business model where vendors have to reach enterprise to provide best solution. But it also can be in Business to Consumer market. Many vendors have provided their IoT product as a user friendly so the consumer can use it easily and manage it by themselves.
Considering what people needs is also important if you want to invest in Internet of Things. There are plenty of players in the IoT (or IoE) industry, including companies who are manufacturing the devices and sensors, businesses that are collecting the data or analyzing it, the systems that protect the security of the data, wireless networks, the companies that are using or storing the data and so much more.
With so many vendors in this business, it means that you have to think what really market wants. If you have a whole lot products but you are not focusing what everyone’s need, then you might fail.
And if you feel like building IoT product is too hard for you, then you can just investing on a progressive platform. Paul Asel, managing partner at Nokia Growth Partners, which announced a $350 million fund for investments in Internet of Things companies in February, suggests looking at device-led hardware strategies, like Fitbit (FIT), as an early-stage investment. Over time once there’s a critical mass of devices and the hardware becomes a commodity, he says to look for companies that can move into the software space and eventually pivot into the broader services and data once the industry gets established.
“IoT is no longer a secret and the prices of some of these companies have ramped up,” says Peter Krull, president of Krull & Company, a socially and environmentally responsible investment firm in Asheville, North Carolina. “Just because they do something great doesn’t mean that their stock is a great buy.”
For smaller investors, Krull says it might make more sense to buy into a diversified technology mutual fund since most will have some IoT investments. The most important aspect is for investors to make sure their investments are diversified not only by size, but industry and location.
So, how about you? Are you ready in invest to Internet of Things?