The Internet of Things (IoT) is becoming an increasingly important element of daily life, both at home and at work, due to technological advancements and consumer desire for better customer experiences. There were 8.7 billion IoT-linked devices at the end of 2020, with that number likely to increase over the next decade.
IoT implementation is a critical component of digital transformation because it allows businesses to keep up with the pace of change. This technological trend will enable businesses to change their ideas, concepts, and development strategies. Ignoring digital transformation could backfire: a company that does not embrace IoT fast will likely fall behind tech-savvy competitors.
Significant Advantages Of Implementing IoT In Businesses
Two characteristics define the Internet of Things:
Automation- The Internet of Things (IoT) is a concept that entails a direct connection between different devices, apparatuses, and other hardware without the need for human intervention.
Connectivity- On a global scale, improved connectivity inside one network provides for simple access to various data.
Because of these characteristics, the Internet of Things will need to use various technologies to ensure that data is transferred, analyzed, and responded to automatically across different devices.
Some of the benefits of IoT implementation in businesses are as follows:
- Improved Efficiency In Operation Management
Automated control over many operational areas, such as inventory management, shipping tracking, fuel, and replacement parts management, is one of the key benefits afforded by the connectivity of smart devices. This method, for example, entails tracking the position of equipment and items using RFID tags and a network of sensors.
- Better Customer Service & Improved Customer Retention
Acquisition of user-specific data via smart devices also aids organizations in better understanding client expectations and behavior. IoT helps improve customer service by providing post-sale follow-ups such as automatic tracking and reminders of required maintenance of acquired equipment after its predetermined duration of usage, the expiration of warranty periods, and so on.
- Effective Utilization Of Resources And Assets
The use of networked sensors to automate scheduling and monitoring allows for greater resource efficiency, such as enhanced power management and water consumption. Simple motion detectors, for example, may save a lot of money on electricity and water bills, making both small and large enterprises more productive and environmentally friendly.
- Thorough Marketing And Business Development
Home-based smart devices, particularly voice assistants and other appliances that can interface directly with end-users regularly, provide vital source data for business research. IoT assists businesses by collecting enormous amounts of user-specific data that can be used to establish corporate plans, target advertising, fine-tune pricing policies, and other marketing and management tasks.
- Increased Business Opportunities
Because of the enhanced efficiency, a firm that employs IoT solutions can offer a broader selection of services or goods or improve the quality of those products or services compared to its competitors, all while maintaining the same pricing.
As an alternative, such a firm may take on more complex activities in terms of production difficulty, time, or quantity. Smart solutions boost a company's competitiveness and attractiveness as a potential business partner in general.
Customers, investors, and other business partners aware of the multiple benefits of the Internet of Things are likely to favor a company that uses high-tech solutions, particularly IoT. Furthermore, if a company delivers a safe and secure working environment provided by a network of smart devices, it is simpler to attract highly-sought professional workers.
Obstacles On The Way Of IoT Implementation
Some of the obstacles or challenges that businesses face when integrating IoT include:
- Security Challenges
It's critical to double-check the security of IoT devices before making a purchase. Some devices do not allow users to change default passwords, leaving them open to attack. Encryption, network security, user anonymity, data storage, access, and other security concerns must all be addressed.
At the same time, businesses must guarantee that their usage of IoT systems and the data they collect conforms with requirements such as the General Data Protection Regulation (GDPR).
- Training The Employees
Unless you hire a third party to help you, any new technology requires your employees to learn new skills. The amount of training and accompanying costs will be determined by the number of employees that need to be trained and the technology's complexity.
- Technical Restrictions
Connecting so many devices is one of the most challenging difficulties of the Internet of Things, and it may necessitate considerable modifications in the current Internet connection strategy. Internet providers still use the centralized client-server architecture to link various devices into a network.
This connection type currently handles IoT, although the number of linked devices is increasing. The usage of cloud services, such as Microsoft Azure IoT Hub, provides a solution to connectivity issues, and it has sufficient capacity to support millions of IoT connections.
The number of devices connected to the Internet is increasing year after year, and the Internet of Things (IoT) is here to stay. IT experts create solutions that address security concerns and technical limitations that hinder digital transformation.
But one thing is sure: despite existing roadblocks, the Internet of Things continues to infiltrate our lives, from the office to leisure activities. Therefore organizations need to take advantage of various benefits of this technology and go ahead with the IoT implementation trend to open up new business opportunities.