Maximize ROI on Your IoT Investments: A Practical Guide

Deciding where to allocate IoT capital is more than simply addressing weak points; it’s about ensuring a clear return on investment. As Joseph Zulick, manager at MRO Electric and Supply, reminds us, the first step is to assess your current position.

Picture your IoT maturity as a series of concentric rings. Rather than a descent into chaos, this model represents a journey toward prosperity—what we’ll call "Paradise City."

Companies in Blissful Ignorance

Many organizations fall into the outermost ring of "unconscious ignorance." They are unaware of what they don’t know and unknowingly lose market share while competitors invest more aggressively.

Conscious Incompetence

The next ring, "conscious incompetence," marks the point at which leaders recognize gaps in their IoT strategy. Yet moving beyond this stage can be challenging. Three common pitfalls emerge here: excessive waste, overreliance on expensive ERP systems, and a failure to align new technology with business objectives.

Hesitant Decision‑Makers

At this level, decision‑makers often oscillate between options, delaying progress. Fear of a wrong choice and an unwillingness to commit can keep the organization stuck while the competitive window closes.

Blame‑shifting is another risk. Some leaders deflect responsibility for IoT shortcomings onto external vendors or processes, which only hampers progress.

Recognizing your current ring is the first step toward change. From here, the organization can transition to the execution phase, where deliberate, data‑driven decisions begin to shape the future.

When you reach this stage, emotional attachment to a particular solution can cloud judgment. Keep your focus on metrics: choose investments that deliver the highest ROI within your timeframe and align with your long‑term strategy.

Defining Your Future State

Begin by mapping a clear vision for the next 3–5 years. Ask: Will your IoT ecosystem be fully integrated? To what degree will automation reduce manual intervention? Avoid a scarcity mindset—this is the time for optimism and realistic ambition.

If your current ERP system satisfies core needs, prioritize seamless integration. A frequent challenge across plants is the lack of interoperability between legacy and new systems. The same principle applies at home: a smart speaker should connect to multiple voice assistants and apps. Ensure that plant‑wide systems share a common data fabric.

Choosing the right platform is critical. If most of your infrastructure relies on SQL Server, that foundation can support many IoT solutions. If you use open platforms or industrial I/O interfaces, ensure your vendor can accommodate those protocols. While out‑of‑the‑box solutions promise quick deployment, they often require adaptation to fit your specific environment.

Set clear expectations: Identify stakeholders, determine the format and frequency of data delivery, and quantify the value each data stream brings to the organization. Consider both the benefits of acquiring new information and the cost of ignorance.

Unconscious Competence

At the final ring, operations run on autopilot. Artificial intelligence and automation have been woven into processes, eliminating the need for constant human oversight. This level reflects true operational excellence.

In lean environments, the strength of the process determines resilience. A solid process remains effective even when key personnel are absent. Deploy smart technology that maximizes return on investment and reinforces robust processes.

Joseph Zulick is a manager at MRO Electric and Supply.