Strong Leadership Drives IoT Adoption

Joanne Phoenix, interim executive director of Sensor City, predicts an exciting trajectory for the Internet of Things (IoT) in the coming year. IoT is spreading across diverse sectors, with leading technology firms and research institutions forecasting broad growth.

We’re no longer debating whether a fully connected future will arrive—only when. While technology provides the foundation, the most critical ingredient for successful IoT adoption is strong, visionary leadership that steers the organization through complexity.

A 2019 Microsoft study highlighted a leadership gap, citing a lack of executive support as the primary cause of IoT project failure. This underscores the need for leaders to acquire the knowledge and tools required to drive IoT initiatives.

However, IoT success is not a solo endeavor. Leaders must rally the entire organization—both internal teams and external partners—to secure buy‑in, optimize implementation, and sustain long‑term benefits.

Alignment is essential because it ensures that technology investments translate into measurable value. Clear strategy, transparent communication, and a shared vision are the pillars of this alignment.

To provide effective direction, leaders must first understand what IoT means for their business, then translate that understanding into a practical roadmap that guides teams toward tangible outcomes.

What Leaders Need to Do to Unlock IoT’s Full Potential

The understanding of IoT benefits and implementation varies widely across organizations. Without a coherent digital strategy, companies struggle to realize the full promise of IoT.

Investing in IoT often requires significant upfront capital and a period of trial and error to find the right solution. Yet the potential payoff is substantial: the 2019 Microsoft IoT Signals report predicts that adopters can achieve a 30% increase in return on investment (ROI) within two years.

Understanding how IoT will benefit your business is essential for crafting a coherent strategy and guiding your organization to success. Start by evaluating your current position, defining future goals, and identifying the areas that will have the greatest operational impact.

To build confidence in your IoT vision, consider investing in skills development or setting clear investment targets. We recommend working through the following checklist to equip yourself with the tools needed to lead your team effectively.

The Leader’s Checklist for IoT Success

• Assess your current position: Are you already investing in IoT or starting from scratch? Identify what’s working, what’s not, the data you’re collecting now, and the data you’ll need in the future.
• Set clear objectives: Define the business outcomes you expect from IoT. Align these goals with your broader business plan and consider benefits for staff, customers, and operations.
• Make an informed investment: Calculate potential ROI by identifying direct and indirect costs, savings, cash flow, and the minimum return (hurdle rate) required for profitability.
• Review your digital strategy: Evaluate existing infrastructure, identify skill gaps, and determine how IoT technologies will fit into your current ecosystem.
• Create a technology roadmap: Map out implementation phases, prioritize high‑impact areas, and outline how new technologies will integrate with legacy systems.
• Develop a communication strategy: IoT adoption involves cultural change as much as technology. Communicate clearly about reskilling needs, new roles, and the rationale behind the transition.

The author is Joanne Phoenix, interim executive director of Sensor City, a global hub for sensor and IoT technology development.

For more guidance on IoT adoption, download Sensor City’s free 2020 Guide to IoT Adoption.

COMING SOON: The latest IoT Now Quickfire Video. We interview Nick Earle, CEO of Eseye, on why IoT has been slower to take off than many predicted!