Industrial IoT investments are easier to approve when teams use a clear ROI model. Start with operational losses you can measure now.
Core ROI inputs
- Current unplanned downtime hours per month.
- Cost per downtime hour.
- Emergency maintenance and rush-parts spend.
- Planned reduction from monitoring and alerts.
- Deployment and ongoing platform cost.
Simple annual ROI model
Annual savings = avoided downtime cost + avoided emergency spend.
Net benefit = annual savings - annual IoT program cost.
ROI percent = (net benefit / annual IoT program cost) x 100.
Use conservative assumptions for your first business case and validate with a pilot.