IoT AND THE PROFITABILITY OF THE MODERN DAY BUSINESS
By 2025, connected industrial devices is set to reach approximately 25 billion — out numbering personal devices (such as phones and computers) connected to wireless networks. The Internet of Things (IoT) is hugely important . A number of companies have already harnessed the gains of IoT in their business processes, however, many continue to observe the development of technology from the outside. IoT is strongly connected with robotics, automation and the replacement of manual labor. This duel connectivity means it can develop in two directions — creating new “smart” things for consumers and businesses, and optimizing the internal processes of enterprises, that is, increasing their economic efficiency. IoT will drive tough organizational structure changes in companies to allow innovation to be transparent to everyone, while creating new competitive business models and products.
The COVID-19 pandemic has forced individuals and businesses to rethink almost every part of how they conduct themselves, the introduction of new technologies to monitor and supervise employees, equipment has become the new normal. It has become imperative for businesses to adopt IoT to remain profitable, efficient and sustainable. IoT is able to increase profitability of the modern day business by helping businesses:
Understand Customers Better
A number of organisations create products based on connected technologies that directly link them to the behavior and preferences of their customers. For example, Samsung can get user data from its smart TVs, and an aircraft manufacturer is aware of how airlines use its jet engines. Even the companies that do not produce these devices can get data about users through IoT applications installed on their tablet PCs and smartphones, and then apply them to improve the efficiency of their business and helping serve customers better.
Create New Consumer Values
IoT technology is able to help companies add new features that complement customers’ activities. For instance, sensors can be attached to agricultural machinery to control the soil condition and yield level, advise on suitable fertilizer and seeds. This could have been considered as cost to the farmer or agricultural company.
Data from IoT-devices can improve the methods of company management, automate production and improve the efficiency of internal tools.
The service for carrying passengers, a car hailing start-up with the help of the application for smartphones has developed an algorithm for monitoring traffic on the road in real time. These data allow for adjusting the cost of travel depending on demand and traffic congestion and control the number of drivers in the area. If there is an increased demand in a particular area, drivers are rerouted.
Data generated by equipment is of great value for businesses. The ability to combine IoT data with business data will be the greatest asset of the modern day enterprise. A detailed examination will reveal opportunities increasing income and also reveal bottlenecks reducing costs.
Having mentioned the gains IoT is able to bring to the modern day business, it is important to note that if not properly implemented and managed, IoT can cause severe losses to businesses. Security is a main issue to be considered when thinking of an IoT project. The adoption of IoT opens up scope for the activities of cybercriminals. IoT solutions should be given the ability to adapt and self-repair in the event of an unauthorized intervention before development to avoid cyber-attacks. To this end, it will be necessary to develop additional mechanisms for identifying and protecting confidentiality. For example, this approach can be implemented using the Object Naming Service. This is a model of secure data transmission that provides anonymity, reliability, and resistance to attacks when using smart innovations.
Also, when looking to implement IoT, it is important that businesses partner with proven vendors and ensure they have in-house data science capabilities.
It is not new for businesses and individuals to dismiss the reality of new technologies, However, it is impossible to stop its’ growth and gains. One of the best decisions for businesses this year and in a COVID-19 world is to get the practice of implementing IoT on simpler projects that are of use to the business, but which do not pose a high risk for the continuity of production. The first implementation surely will give confidence, and you can include IoT in the IT/Digital transformation strategy of your company without any fears and take it not as a destabilizing factor, but as a reality that you need for your profiting.