As with any new technology, businesses will need to find quantifiable benefits in the Internet of Things before the concept is embraced and implemented. It could be argued that connected devices are already being adopted on a wide scale: companies like Microsoft, Amazon, Qualcomm, IBM, and others already see IoT as a core part of their businesses. Even so, there are still some, especially small to medium sized businesses, that are weighing up the costs and benefits of ultra-connectivity in the world of the Internet of Things.
You do not have to dig deep to see why IoT is important. Business Insider's research division, BI Intelligence, has predicted that IoT will become the largest device market in the world over the next five years. Most analysts predict market value will reach in to the trillions, with possibly $7 trillion of total value by 2020. Any way you slice the pie, billions of dollars are on the table. These figures are promising for businesses directly involved in the manufacture and design of device services and hardware, but what about the companies that will purchase these technologies to incorporate them into operations?
Perhaps the single largest benefit will be in how Internet of Things devices can lower costs. The manufacturing sector provides an ideal case scenario. Machine to Machine (M2M) systems will allow for machinery to become more efficient, and more autonomous. Take a production line that was previously labor intensive. Sensors relying on IoT can receive orders, initiate fabrication, sign off work orders, and even package products using IoT, and with little human interaction. Even non-automated manufacturing will benefit. Orders can be taken from anywhere in the world, transferred through the cloud, and delivered to remote manufacturing facilities. These systems can collect valuable analytics that can benefit accounting, inventory management, and even resource procurement.
While this type of IoT will directly benefit businesses in manufacturing, it will also create new opportunities for project managers, engineers, and IT professionals who will be necessary in designing, implementing, and supporting these systems. It even creates the role of Chief Internet of Things Officer, the CIOTO, tasked with managing a network of connected systems, and connecting their efforts back to business goals.
Because IoT provides immediate data collection, businesses in all industries will benefit from improved decision making. Being able to analyze and distribute intelligence faster means that tedious data collection will be a thing of the past. Decisions can be made faster, and in some cases can be automated. What this spells for enterprise is, in essence, better decisions based on better data.
Hong Kong International Airport, and other mega-airports around the world, already rely on RFID technology to track luggage and freight throughout their sites. This enables luggage to be delivered by machine to the correct gate, the correct passenger carousel, or to the correct airliner, train, or delivery vehicle. Items are tracked via computer, and managed from a central control point. This reduces hands on management and labor costs. HKIA spent $50 million to develop the initial infrastructure, but widespread adoption of this IoT based technology could save the industry $760 million per year, according to the International Air Transport Association.
Imagine how a similar system could benefit a SMB. Goods delivery could be RFID or barcode tracked on handheld scanners. This tracking information could be uploaded to a cloud solution, from where dispatchers, couriers, and clients could track the location and progress of a delivery. These are the kind of innovations that are driving IoT, and making it a necessary technology in a market where cost and efficiency is key, and where end users and consumers demand constant, easily accessible information.
The opportunities are there for businesses who adopt IoT today. The benefits exist whether they seek to improve manufacturing efficiency, streamline logistics processes, or even provide new ways for customers to interact and receive information. In the growing world of IoT, the question is not why should we care, but is rather, can you afford not to?
Please give us your feedback or share how the Internet of Things has touched your business below.