Telecoms expert and smart city advisor Intelligens Consulting has revealed the investment case for the Internet of Things (IoT).
Based on research commissioned by R3-IoT, CENSIS and North the research shows that IoT can make a significant contribution to reducing cost leakage, improving productivity, and improving services for local authorities.
Following the chancellor’s spending review in the October budget, local authorities will be forced to reduce cost leakage, improve productivity, and streamline services due to high inflation.
Intelligens Consulting’s Founder and lead adviser Iqbal Singh Bedi said, “Many local authorities will have come across IoT; however, IoT has been dismissed by some local authorities as they don’t understand the investment case or the value returned i.e., the Return on Investment (RoI).
Bedi went on to say, “Our research shows that IoT can make a significant contribution to reducing cost leakage, improving productivity, and improving services”.
The decision to invest in new and emerging technologies such as IoT can be daunting for local authorities particularly if they don’t have in house expertise, knowledge or awareness of the many direct and indirect social and economic benefits enabled by IoT as part of the Smart Connected Places agenda.
Iqbal said, “IoT can help local authorities to deliver better services to citizens and businesses, improve the productivity of its work force and reduce cost leakage thereby reducing pressure on its financial resources. In other words, IoT should be a key consideration for local authorities when designing services and when undertaking their spending review”.
Intelligens Consulting’s research reviewed the RoI for IoT within social housing and street lights which can break even in a short space of time.
Despite the case for IoT being clear, many local authorities may not have adequate funds available to invest in IoT.
According to Iqbal, “Local authorities in this situation may need to consider alternative private finance and structured finance models to fund the investment in IoT”.
Intelligens Consulting’s team of technology, strategy, economic, procurement and finance experts can help design and deliver digital inclusion strategies. We can provide strategic, technical and procurement support, research and economic analysis, and create innovative financing vehicles to fund the development of smart connected places.