As defined by Suzanne Elly, correspondent for IoT Evolution World, Internet of Things (IoT) is “a network of devices, appliances, and vehicles that are embedded with sensors, electronics, software, connectivity and actuators; enabling them to connect and exchange data. IoT devices share data in a wired or wireless network.”
IoT devices are going to change the way people do business.
Businesses can use data collected by IoT devices that will allow for them to gain a better understanding of their target demographics. Many will have more data at every stage of the consumer buying cycle.
“Smart devices will be able to track behavior and possibly learn from them, making intelligent product recommendations and customizing searches in new, innovative ways,” notes Jayson DeMars, contributor for Forbes.
According to the McKinsey Global Institute, “IoT will have a total potential impact of up to $11.1 trillion a year by 2025.”
“With better information about the consumer and the market, the productivity of any business can be notably increased. IoT devices can be connected to each other and controlled to improve efficiency, which in turn has direct effects on the productivity of the business,” says Elly. Ultimately, more tasks can be done more efficiently.
For example, moving assets from one place to another continues to be done manually, which creates room for error. Businesses, including retail stores for example, either have too much inventory of their products or the product is always out of stock. This can create inaccurate information about where the products are and how they are being used. IoT implementation can help companies keep track of, and manage, their inventory by reviewing automatically-controlled data.
The insights given from IoT data is not only creating new business models, but it is also transforming existing industries. The use of IoT sensors can give data about anything from someone’s driving habits to their heart rate and physical activity.
“Sensors can also measure foot traffic around certain in-store products placements, so retailers can know if adjustments are needed to attract people,” explains Jim Poole, contributor for Network World.
Companies that are finding ways to implement IoT services into their business operations may have an easier time getting ahead in an increasingly digital world.