Organizations are quickly realizing the importance of IoT to their businesses. The IoT is a network of internet-connected gadgets that can gather and transmit data over a network. As it plays a critical part in the digital transformation, the IoT technology has recently progressed from the pilot stage to creating business value. The continued growth of this industry will serve as a digitalization force for all organizations. Healthcare, BFSI, energy, automotive, manufacturing, and transportation are being transformed by the IoT technology platform. As IoT is getting integrated into multiple industries, its market is expected to reach USD 6075.70 Million by 2030, growing at a 19.91 % CAGR between 2022 and 2030.
Impact and Beneficial Aspect of IoT on Businesses
IoT has had a massive impact on industries since 2011, acting as one of the catalysts driving the industry 4.0, representing a new stage in the organization and control of the industrial value chain. Industry 4.0 is built on cyber-physical systems, also known as smart machines. IoT is all about integrating sensors, devices, gateways, and platforms to business strategy and solutions. Businesses can make more informed decisions and structure more effective systems by centralizing all of the data. This facilitates businesses to meet the growing demand for high-quality, customized goods at a lower cost and with shorter turnaround times. However, IoT is much more than just data collection.
Data must also be analysed and enriched in order to provide actionable insights to businesses. This is where AI, robotic process automation, and analytics come into play. These tools are used by intelligently designed software to uncover hidden trends, optimize business processes, and assist workers.
Given the proliferation of IoT-connected devices, one may wonder, how does IoT affect business? The short answer is – in every way.
IoT is an extraordinary asset to businesses. Access to large data sets, as well as autonomous data collection and exchange, make it easier to gain insights into things like customer behaviour and product performance. IoT also empowers continuous process optimization and has an effect on employee engagement and performance. When certain criteria are not met, IoT in business can direct systems to start executing operations in supply chains autonomously. If a business is thinking about how useful IoT is to their organization, they should first understand how it is already modifying management and operations.
Here are some of the key areas that the IoT is transforming and empowering digital transformation today.
- Advanced Efficiency and Productivity: Businesses that implemented IoT technology saw increased productivity and efficiency. IoT collects data on processes, making it simple to improve them in the event of an anomaly. IoT can be used in a variety of industries, including manufacturing. IoT devices assist in tracking demand and managing part and material production accordingly. Businesses can boost their productivity by learning more about the market and its customers. In addition, IoT can aid in the orchestration of extensive automation and provide real-time feedback on operational efficiency. These innovations will enable businesses to operate at a lower cost, thereby expanding the landscape significantly as insertion becomes more cost effective and manufacturing becomes more feasible.
- Cost Reduction: The IoT makes cost cutting easier. Integrating IoT devices can save money on tasks that would otherwise be done by humans. Tracking of various operations or equipment, such as heating and cooling systems, might fall under this category. Since the data can be logged in real time by a central system, an unnecessary trip by an operator can be avoided. IoT benefits companies by lowering the costs of unplanned downtime, creating a digital twin that can be used to track assets and perform complex simulations, improving worker safety and satisfaction, and providing deep, actionable insights into process and equipment improvements. IoT can also provide manufacturing companies with agility and resilience, allowing them to thrive no matter what.
- Efficient Inventory Management: Many businesses are facing inventory management and monitoring difficulties. Poor inventory management can cause a variety of problems, including order fulfilment delays. In the long run, this will harm a company’s productivity and profits. Businesses, thankfully, now have the option of automating business inventory by implementing IoT software in their storage facilities. This technology will help ensure that your inventory is efficiently monitored and managed, giving the company more time to focus on core business operations.
- Analyse Consumer Behaviour: Customer preference and behaviour analysis is critical for the success of any industry or business. IoT benefits retail companies by allowing them to retrieve, track, monitor, and analyse data collected from the internet, video surveillance, social media, and mobile usage. This scenario allocates necessary insights to predict consumption patterns and forthcoming business trends, allowing companies to design products and provide personalized services for higher levels of engagement. Companies will be able to retain their target consumers and cultivate brand loyalty with access to detailed customer profiles.
How can Business Leverage IoT
When it comes to how to use the Internet of Things in business, the key thing to remember is that new levels of interaction and interconnectivity have significant payoffs for almost any business. As a result, how each company decides to leverage IoT within its industry and sector is a critical decision. It is not a one-size-fits-all approach, but rather a highly customized method of developing a greater understanding of uplifting and enforcing specific business objectives.
The evidence for IoT’s benefits is clear, and this is about to change how the IoT can help businesses. It not only boosts efficiency and revenue, but it also ensures that the best services and products are delivered to customers at the right time. Organizations that have implemented IoT will see increased business opportunities as they become more customer centric. That means that enabling business with IoT could put businesses on the cutting edge of changing business customer interaction trends.
(The author Mr. Prashanth GJ, CEO, TechnoBind and the views expressed in this article are his own)