Examining the benefits of new technologies using the example of the “Internet of Things” (IoT)
As project manager, I was asked to check whether IOT (Internet of Things) could be used to simplify and improve the filling of cigarette vending machines. Specifically, the vending machines were to be equipped with sensors and modems and report the current stock of cigarette packs via the Internet. It was hoped that this would lead to cost savings and better availability.
Theory is one thing, practice is another. In theory, the advantages are obvious. Much less material has to be stored and transported, pointless tours are eliminated and the vending machines are always adequately filled. In practice, however, the vending machines are located in the basements of restaurants and are difficult to access via the Internet, the operators of restaurants and pubs are not always reliable and road conditions are also difficult to plan (public holidays, traffic jams, accidents). Just-in-time with the right quantity in the right place is simply not better in this case.
We have simulated all approaches and options and calculated them thoroughly with the help of a business case. In the end, we retained the old, tried-and-tested process. With the existing framework conditions and available technologies, automation has simply not added any value.
Carefully weighs up the advantages of using technology against the disadvantages. Above all, play it through: what would the process look like in everyday working life? What would have to be in place for it to work well? When you carry out a profitability analysis, make sure you structure your assumptions, specifications and scenarios well. If it’s not worth it, don’t do it or stop the exercise. If something elementary changes in the future, you can easily reuse the profitability calculation with new parameters and check the matter again.
