Our drive and demand for connectivity continue to push digital technology in ways limited only by imagination. IoT or the Internet of Things is one of those modern-day innovations.
We see IoT changing businesses as well. It is one area where IoT’s transformative prowess is harnessed extensively to improve products, services, operations, and customer interaction.
The use of this technology is not limited to large-scale enterprises only. IoT technology can help in improving modern businesses so even small businesses can compete with big ones and with world-class standards.
In fact, there is an estimated rise in the global market for IoT-managed services up to $135 billion by 2027. Adapting to newer technologies to meet ever-changing global demands is smart to move forward with new normal business strategies.
Moreso, if IoT interconnectivity among devices and industries seemed limited in the past, that is changing now. Linked systems are expanding exponentially due to IoT surpassing limited connectivity. Over the next five years, many IoT technologies will become increasingly interlinked.
More and more, IoT devices will also be interlinked through smart, AI-powered devices. AI (Artificial Intelligence) and Machine Learning technologies will continue to enhance IoT devices when securing data processes through cloud storage solutions, analysis, communication, and the like.
Table of Contents
Internet of Things (IoT) Defined
The Internet of Things (IoT) was called as such back in 1999. Since then, it grew in popularity along with the widespread use of the Internet Protocol (IP), universal computing, data analytics, and other touchless solutions.
The IoT is an extension of the internet and other network connections to different sensors and devices or “things.” It can enable even simple objects, such as light bulbs, locks, and vents, and the like, a higher degree of computing and analytical capabilities.
These “things” have interoperability and connectivity, such as the ability to capture and exchange data from their environments with other devices and networks. Through analyzing and manipulating data, devices may execute their tasks with little to no need for human input.
In consideration of the growing number of connected users, the IoT continues to expand. Layers of data exchanged and stored continue to multiply, improving algorithms, and increasing the extent of automation. IoT has made it easy to provide a variety of apps for individual users and entire industries alike.
Business Applications of the IoT
The ability to connect devices through IoT technology contributes to the various developments improving CX (customer experiences), communities, and society as a whole. For one, it allows businesses to be more mobile, stable, competitive, cost-efficient, highly-productive, and profitable.
For instance, businesses within smart building facilities can monitor foot traffic to control energy consumption. IoT-powered business solutions can also automate inventory and procurement, logistics, research and development, and front-facing services. In turn, new applications and business models are blooming as well, increasing revenue streams for businesses.
Businesses of all types and sizes are entirely adopting digital assistants (Alexa, Siri, Google Home, and the like), mobile home devices and appliances, autonomous thermostats, smart appliances, wearable health trackers, remote protection and surveillance services, connected vehicles, driverless cars, and the like.
As we enter the new industrial age called Industry 4.0, we shall continue to witness the application of IoT in several ways, impacting the way we live, operate, move, and do business.
Advantages of the Internet of Things (IoT)
Agility
IoT technology’s design provides a lot of room for agility, as their workers can continue to operate from practically any location. This flexibility helps small businesses thrive, especially during these changing and challenging times.
For instance, many businesses during the pandemic had to close their brick-and-mortar locations due to social distancing protocols. IoT technology and other touchless solutions enable businesses to regain business momentum and maintain operations even remotely.
Most businesses who went online are discovering this new mode of operations is not just temporary. Online operations have become a staple in different industries. Many businesses may not go back to their previous operations because agility in business can significantly reduce costs for better profit.
Hiring remote workers, for instance, is something that a majority of businesses will continue to adopt. About 43% of companies who adopt IoT policies in their enterprises achieve improved business resilience by changing how business systems are performed.
The use of IoT technology throughout all of your communication devices and securing all endpoints would be the primary concern for small businesses using IoT.
Efficiency
IoT contributes significantly to making small businesses more efficient, accurate, and productive. Since IoT devices are interlinked, it increases the amount of work done in less time.
Even large-scale tasks and activities can be done faster and more precisely, increasing business productivity and profitability. Moreover, keeping your IoT devices maintained and functioning efficiently to boost business revenues further.
For example, automation eliminates the time-consuming steps in PDF conversions and creation, improving communication and documentation speeds.
IoT-powered collaborative tools for teams also improve internal and external communications that around 58% of businesses will use collaboration tools increasingly this year and in the future.
Big data analytics via the Internet of Things will help you gain an overview of your workforce’s productivity and identify which behaviors improve your function and hinder it. Supply chain manufacturing can also be analyzed and monitored efficiently through big data.
You can also track distribution networks to monitor inventories to keep up with demand. Additionally, IoT and big data allow you to respond quickly to employees and customers through well-maintained hardware and software.
CX or Customer Experience
IoT technology goes beyond back-end operations. It also gives way to omnichannel marketing strategies that improve customer experience (CX) for all types of businesses, including SMBs (Small-to-Medium Businesses).
Improving front-end customer engagement must also be a priority for small businesses. It improves customer engagement and interaction, whether through improved mobile services, automated chatbots, or 24/7 customer support.
Interlinking IoT devices to consumers’ digital devices are crucial for businesses. Custom mobile apps, for instance, that can remotely monitor and control IoT devices are increasing.
This increase in IoT solutions further encourages a staggering 90% of Information and Technology experts to improve CX standards via IoT devices that cater to a very on-the-go market. It allows businesses to deliver competitive solutions that further drive their sales and conversions.
Customer Engagement
As IoT services and solutions continue to improve customer experience, it also drives customer engagement. Using the internet and similar network connections allows consumers to control their smart appliances, devices, and systems more.
Small businesses, for example, can remotely monitor their services, products, and the whole operation. Additionally, they can also provide better support for their consumers with greater accuracy and speed. Maintenance support, for instance, can quickly be scheduled and executed, along with an efficient, real-time communication system that alerts both the business and the consumer of updates on job orders and the like.
Automation
Automation is something that more and more businesses are striving towards. If you are not automating your system in any aspect of this new industrial revolution, your competitors will leave you in the dust.
But automation is not just to impress consumers. It brings your small business to the new era of technology and eCommerce. It lowers costs by minimizing repetitive tasks and errors in operations, product or service delivery, and communication.
As an example, the shipping industry now uses IoT sensors either on packages or vehicles to make supply chains more transparent and preserve cargo throughout transport operations. Small businesses can customize IoT devices to monitor everything from temperature changes, delays, disruptions, tampering, theft, and the like.
It allows everyone involved in the supply chain to receive, process, and deliver cargo correctly and on-time. It allows small businesses to be on top of operations, even from anywhere in the globe.
And as cost-effective data is gathered through every transaction, systems and procedures can always have an accurate basis for improvements or revisions.
Conclusion: IoT Opens New Business Opportunities in the New Normal
By integrating IoT technology, you get unique market prospects that increase revenue sources for your small business. New and enhanced IoT-powered technologies generate better business cases, shorten time to market, and optimize ROI. IoT can also shift how consumers and businesses view the world by using the IoT beyond networking.
Small businesses can also overcome modern challenges such as data management issues, the deficit in interoperable technologies, data privacy concerns, security issues. And as IoT technology becomes more mainstream and user-friendly, it also lessens the need for small businesses to master the technology before using it. It takes a chunk of load among small business owners, who can now jump into the IoT bandwagon as they are learning the ropes of how to optimize IoT for their business.
On the other hand, small business owners must quickly shorten the learning curve with emerging technologies such as IoT. Hiring your own experts may be expensive, as well as outsourcing third-party support. Consider it as a necessary investment, but as you build your business more and more on newer tech, make sure that you are also upskilling your team to lessen further the need for outside help that comes with additional costs.
Even in its early stages, the Internet of Things is already opening new business opportunities in the new normal. As IoT development progresses, make sure you are updated with IoT trends and other digital developments that can further improve your small business, allowing you to compete on a global level and tap new markets for growth.
About Author
MAYLEEN MEÑEZ
Mayleen Meñez used to work in media before finding her true passion in NGO work, travelling the Philippines and Asia doing so. She homeschools 3 kids and loves reinventing Filipino dishes. She is a resident SEO writer for Softvire Australia and Softvire New Zealand.
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