The rapid growth of IoT in the home speaks volumes of the benefits of internet of things. The Internet of Things equips people with new tools to solve problems and improve their quality of life. When people with mobility issues can adjust blinds and monitor the temperature of their premises through one interface, they can enjoy a more independent lifestyle. Furthermore, people can gauge their heartbeat, know what’s in the fridge, or check to see that the garage door is closed — from the bedroom or abroad — all from the screen of a smartphone.
There are 8.4 billion connected things currently in use and experts predict there will be 26 billion connected devices by 2020.
What Keeps Businesses from Realizing the Benefits of Internet of Things?
By 2025, the data captured through IoT solutions will inform business insights that bring about $11 trillion in economic value. Yet despite the real potential to benefit from an IoT-enabled business model, many business leaders hesitate before launching IoT initiatives in their company.
In one study, over 98% of enterprise leaders (representing industries from healthcare to energy) indicate that businesses in their respective industries include IoT in their strategic roadmaps. Yet 70% of those respondents have yet to include IoT solutions in their current workflows.
Many leaders have difficulty finding successful examples of the benefits of internet of things after which they can model IoT solutions for their own business purposes. Identifying what is required to launch IoT solutions may not be immediately apparent, either.
How Do Businesses Realize Benefits of Internet of Things
IoT for IoT’s sake is not the end-goal. Business leaders need to be methodical in their approach when seeking an IoT solution that will benefit the company. Success in IoT requires business expertise, industry knowledge, and an appreciation for the challenges encountered at small and large scales in both realms. Strong business vision must fuel the implementation of IoT networks and the data they collect.
When decision-makers weigh how the business can grow with components of IoT, asking the right questions will help orient the journey through IoT implementation and management.
- What problem needs to be fixed?
- Who feels the effects of this problem?
- How much data is needed?
- Who will analyze the data?
Specifying the type of growth a company wants to achieve can further inform how the IoT solution will need to be architected and executed. Sourcing knowledge from stakeholders who can offer insights pertaining to strategic business goals, industry knowledge, and existing data points positions organizations to set more precise development initiatives that do not leave realizing the benefits of internet of things up to chance.
- Grow customer base
- Improve service/product to make existing customer base more profitable
- Reduce inefficiencies to grow revenue
- Increase market share by developing a better product
The economic advantages inherent amongst the benefits of Internet of Things are clear to those organizations that have implemented IoT technologies successfully.
- Boeing increased productivity by 25% when workers at its assembly lines were outfitted AR tools and IoT wearables that collected data and shed light onto process inefficiencies.
- A German telescope manufacturer avoided 400 on-site visits for machine break-down, saving $500,000, through the data gained in its IoT network.
- The city of Barcelona, Spain saved an estimated $95 million a year after connecting municipal service systems through an IoT solution.
Why Businesses Should Embrace the Benefits of Internet of Things
The cost of not adapting could be high. In the next five years, an estimated $6 trillion will be invested in IoT solutions, which will generate $13 trillion in ROI for those who invest in IoT connectivity.
What Are the Key Elements of IoT Solutions?
Since a one-size-fits-all IoT solution does not exist, business leaders who understand the different components of whats makes IoT solutions effective are better positioned to innovate while improving the efficiency in their business.
Outlining the essential components of successful IoT solutions can provide a framework for business leaders to understand how they can allocate their resources to realizing the benefits of internet of things:
- Collection — Sensors collect the data, from customer user patterns to temperature of industrial machinery, or the amount of energy produced by a wind farm.
- Transmission — A cellular or wifi connection transmit data to a server. This connection is subject to industry regulation, so this component receives much attention from IT teams.
- Data Aggregation — Data is encrypted and stored to cloud servers for analysis and service integration.
- Distribution — User permissions and user roles dictate how data should be accessed. Security protocols and privacy features are also enacted in this layer of IoT.
- Consumption — The end user consumes the data via analytics engines, mobile applications, or other interfaces.
How the Benefits of Internet of Things Helps Companies Conquer Disruption
Rapidly evolving technologies have the tendency to cause disruption. IoT will continue to integrate into daily life and commerce as it connects disparate people and things to any number of other people and things, likely altering various codes of conduct.
As unsettling as this can be, IoT is also empowering for people and businesses. Access to more data is getting easier. Organizations that remain flexible, forward-thinking, and that work with equally adaptive tech partners, are the best equipped to overcome disruption from Internet of Things by working with the Internet of Things.
Next phase? Genuine connectivity for #IoT. Automotive (and mobility in general) is the next big platform – home > car > office and beyond
— Dean Johnson (@activrightbrain) August 2, 2017
Image Source: Unsplash, Paulo Simões Mendes