The Internet of things (IoT) is the network of physical devices, vehicles, home appliances and other items embedded with electronics, software, sensors, actuators, and connectivity which enables these objects to connect and exchange data. It has powerful applications in the future business, imparting companies of all sizes with built-in capability to efficiently perform data analysis so that they can function more cost-efficiently and productively.
The IoT can also enable digital transformation and drive new business models & values in various types of businesses, across almost all industries. Through connecting people, systems, processes and assets using IoT, business leaders will be able to make better-informed decisions which can improve customer experience, reduce costs and yield more revenue.
Cisco and DHL both predicted in a report that IoT will generate a business value of $8 trillion worth worldwide over the next decade, primarily based on five key factors including: 1) innovation and revenue; 2) asset utilization; 3) supply chain and logistics; 4) improvement in employee productivity; 5) enhanced customer experience.
With the development and popularity of the IoT technologies, small and medium-sized businesses can especially benefit in the following ways.
- Increased efficiency and thus profits
Business owners can cooperate with manufacturing plants that use IoT to connect to operations, logistics, and suppliers, which enables you to manage production in a remote and highly efficient manner. The IoT can also realize speedy deliveries to end customers by connecting all relevant steps, from order taking to truck routing.
- Personalized one-to-one marketing
Businesses can use IoT-based interactive displays to provide answers in a real-time way for consumers’ need. Interactive displays can help an organization to create its own set of product models and it can take you through a variety of products and solutions. For example, Nike has successfully applied this new kind of marketing method. A customer’s phone can provide detailed information about product including pricing information and that can be achieved just by pointing at any product in the online store and using the store’s interface.
- Continued refinement of business operations
IoT integrating big data analytics would not only basically change the way traditional businesses are managed, but also result in more effective and efficient use of resources. As an example, service companies can make best use of IoT based solutions to monitor and identify the customer’s issues by allowing their technicians to visit the customer’s location through the network.
Small and medium-sized companies will have even greater advantage of using IoT, as it would bridge the supply-demand gap by integrating the inventory management and customer management systems. Thus, in a world where everything is connected and devices are intelligently communicating with each other, we can make business operated in the simplest and direct way.
- New business opportunities
The IoT not only results in greater efficiency of existing businesses, but also leads to many new business opportunities, such as device specially designed for application in this new technology, as well as corresponding management schemes. The IoT will also give rise to demand for cloud platforms for data storing and processing.
JumoreGlobal Insights will pay close attention to how the IoT develops to help your business get ready to adapt to the possible changes arising from this new technology.