Internet of Things (IoT) is not a buzzword or media hype anymore. It has gradually transformed into a dominant force and is now set to disrupt the way business is done. IoT has emerged as the next wave of digital disruption and definitely more powerful than the internet and mobile. Entrepreneurs, CEOs, CTOs and other key decision makers are now realising the true potential of IoT and how it can be leveraged to their advantage.
According to a recent report by Gartner, “4.9 billion connected things will be in use in 2015, up 30% from 2014, and will reach 25 billion by 2020.” The report also predicts that IoT will support total services spending of $69.5 billion in 2015 and $263 billion by 2020.
With the unprecedented growth of data, it is in fact playing a decisive role in the enterprise. The digital move promoted by social media, mobility, and Cloud computing and boosted by IoT, leaves no choice for enterprises, but to embrace Internet of Things (IoT).
7 reasons why enterprises should embrace Internet of Things:
1. Improves efficiency – Enterprises across verticals can use real-time operational insights to make smarter business decisions and reduce operating costs. They can use real-time data from sensors and actuators to monitor and improve process efficiency, reduce energy costs and minimize human intervention. Especially in manufacturing, IoT helps manufacturers to improve resource efficiency, safety and return on assets.
2. Increases productivity – Productivity is a critical parameter that affects the profitability of any enterprise. IoT improves organizational productivity by offering employees just-in-time training, reducing the mismatch of required versus available skills and improving labour efficiency.
3. Improves asset utilization – With improved tracking of assets (machinery, equipment, tools, etc.) using sensors and connectivity organizations can benefit from real-time insights and visibility into their assets and supply chains. For instance, they could more easily locate assets and run preventive maintenance on critical pieces of infrastructure and machinery to improve throughput and utilization.
4. Reduces cost – Costs can be reduced through improved asset utilization, process efficiencies and productivity. Customers and organizations can benefit from improved asset utilization (e.g., smart meters that eliminate manual meter readings) and service improvements (e.g., remote monitoring of patients in clinical settings).
5. Opens new business opportunities – IoT creates new business opportunities for small and medium enterprises (SMEs). The emergence of a global production and distribution model will open up new avenues for SMEs to participate in opportunities across markets which they have not accessed before. For example, a diabetes monitor manufacturer will be exposed to opportunities across multiple markets if it partners with a global healthcare services provider.
6. Improves service quality – Many IoT-enabled services are delivered through global distribution models, with distinct elements of the value chain being performed across various geographies or regions, and with services and products being offered in many markets. For example, the automobile manufacturer will have to ensure that a car equipped with a smart module can have the device enabled for services in markets where the car will be sold.
7. Reduces response time – IoT-enabled smart devices are helping improve access to care and enable remote monitoring of chronic diseases and age-related conditions. In doing so, the connected device will improve the quality of care, reduce response time, prioritise interventions, reduce clinic visits and cut costs. This will reduce the strain on the wider healthcare system, so that its resources can be more focussed on emergencies and cases requiring immediate attention.
Depending on the industry, IoT applications can have far-reaching effects on how companies operate and may even force changes in business models. Enterprises need to identify and prioritize opportunities for IoT to enable them to improve performance in their current operations and lines of business. These opportunities are extensions of the new possibilities emerging from the use of Big Data and advanced analytics. IoT data will allow companies to personalize services based on consumer behaviour, usage, and context.