Businesses are already in line to become the largest adopters of IoT technology, thanks to lower operating costs, increased productivity, and expanding into new markets & developing new products. IoT is positioned to generate more data for existing businesses, granting new opportunities and allowing businesses to adapt their models to stay current. Below, we’ve outlined five major ways that businesses using IoT will see change and growth in the near future.
1) Businesses using IoT will collect more data.
Who doesn’t want more data? With so many more devices being connected to the internet, that means more information that can be collected from consumers. For example, creating an IoT-enabled running shoe might lead to inner soles that could help athletes run faster or prevent joggers from getting knee injuries. It would be much harder to come up with this data and develop these products without the use of IoT & automatically-generated data.
More data means more products can be developed that weren’t thought of before. IoT opens up doors for data collection and communication with consumers in a new way. As an added bonus, data can be collected in real-time, leading to faster analysis and decision making.
2) IoT leads to faster and more efficient processes.
Sensors within IoT devices makes technology faster, and more agile and adaptable. Connected machines are able to mimic what a human can sense – sensors can use sight, hearing, balance, temperature, and other variables to make automatic, informed decisions without human interaction.
IoT developments will allow you and your colleagues to accomplish large-scale tasks faster and with greater precision, including data analysis and management. Automated processes allow business to focus their attention on new endeavors, products, services, and the optimization of other existing processes.
3) IoT creates more consumer needs.
As with point #1 above, research and data collection allow for more products to be developed. How would we know that we need a new inner sole to help with jogging? Are my current shoes really affecting my knees that much? This isn’t just about buying smart, connected products – it’s about collecting data from smart products to infer decisions for future products. A new inner sole isn’t a smart product, but it was conceived thanks to data from a smart product. IoT data collection leads to developing new, non-traditional products that we as consumers never realized we needed.
Connected devices are fun and convenient, making them hot commodities for payday splurging and holiday gifts. How many people do you see sporting Fitbits and Apple Watches now? They improve your quality of life and are simply neat gadgets to own. IoT is opening up new markets for products and services for the everyday consumer to purchase for fun.
4) More jobs will be needed with different skills.
New technology requires people to develop, use, maintain, fix, and sell it – these are jobs that didn’t exist before. IoT is creating a demand for a whole new line of professionals. We’ll need developers, marketers, salespeople, executives, and more, all who know how to work with IoT. Notably, we will need cybersecurity professionals more than ever.
Take Amazon Echo for example. Someone needed to create it and develop for it. Now we have people designing apps for the Echo, planning upgrades, selling it in stores, become experts in fixing it, and more. That sounds like a lot of jobs all because of one product. Now picture the growth behind an entire industry of IoT products.
5) Overall change in a business model.
Businesses using IoT will need to adapt and evolve to make the most use out of the changing landscape thanks to IoT. John Deere, for example, has made a name for themselves as a company that sells tractors to farmers. Since 2012, they’ve been adding data connectivity to their products, collecting and distributing information to farmers about what crops to plant, where and when, and more. One could say that their business model has evolved beyond just selling tractors, to selling data and information.
All of the data collected from existing smart devices will infer future changes. The executives over at John Deere likely didn’t wake up one day and decide to start selling data to farmers. The data they collect will continue to decide major business decisions, shaping the company as a whole and not just the products they’re known for selling.
By evolving and expanding, businesses using IoT are creating more value, which involves a company’s offerings that raise their public profile in addition to generating more sellable products. Companies can now look at their strategy from the consumer experience, as they have more real-time data they can work with.
IoT is a blessing, not a curse.
Businesses using IoT will generate more jobs, will be faster and more efficient, will collect more data, can react to consumer needs more efficiently, and will see evolved and expanded business models. These changes may take some getting used to – and it will take time – but will be better for the company and for the economy as a whole. The Internet of Things will breathe new life into existing businesses, allowing successful companies to stay relevant, and to give a second chance to companies that are struggling.