Introduction
Technological advancements in the Internet of Things (IoT) or the Internet of Everything (IoE) have made businesses more actionable and viable than ever. IoT propagates the idea of sensors (physical objects) being connected anytime from anywhere through the internet. IoE further includes the interconnectedness of people, data, processes, and things through the internet using such means as RFID devices, wireless systems, and QR codes (Bidgoli, 2015). The integration of IoT devices can allow for the collection of vital information. This data can offer organizations crucial metrics to predict and approximate consumer behavior, besides enabling employees to streamline their workload. Further progression in this field is contingent on creations in microelectronics, network protocols, and embedded systems, which are likely to bolster businesses which adopt this technology (Krotov, 2017). This paper discusses IoT applications in business, significantly how the large volumes of data collected can improve business insight and better customer experience.
Boosting Business Insight and Customer Experience
The Internet of Things can be adopted by organizations to boost business insights and customer experience. The interconnectedness of equipment in manufacturing, healthcare, agriculture, aviation, supply chains, and other related aspects of the economy is crucial in creating a stream of data (Bidgoli, 2015). In addition to the analytic potential it carries, this information load implies that businesses can gather greater insight into their operations. More importantly, these enterprises get the opportunity to learn how their customers and clients use their products and services. The availability of cloud computing services provided by such large corporations as Microsoft Azure, AWS, Google, and IBM further creates an enabling environment for businesses to thrive (Krotov, 2017). Besides, there is an increasing shift towards edge computing in specific business sectors that try to reduce latency resulting from remote third-party data management centers.
When businesses learn how their customers utilize their products, they can build on fulfilling their needs and improving their experience. This technology-driven change is fundamental in the retail sector. The evidence is widely reflected in the marked reduction in household names while Amazon and Ocado are thriving on this data-driven strategy (Krotov, 2017). The future of retail business is hinged on establishing a connection with the customer and minimizing inconveniences for them. The urgency mentality that currently predominates among shoppers implies that convenience takes precedence over such issues as brand loyalty. Consequently, many buyers have opted for online shopping, a move which requires physical store owners to innovate.
IoT predominantly works within the shopping realm, making the purchasing process more comfortable and interactive and providing additional benefits. Customer interaction is done either through virtual reality or augmented reality before the buying occurs. In working to lower friction points in the customer’s shopping experience, Sandburg, a UK-based retailer, uses a scan, pay, and go technology on the clients’ smartphones to limit queue formation at checkouts (Suppatvech et al., 2019). IoT and IoE improve inventory control in addition to supply chain management. This boost in control and supervision happens as streams of data about products are gathered from the selling opportunities.
Reducing Operational Costs and Downtimes
The IoT and IoE can be applied in business to reduce costs and downtimes. For instance, the appearance of digital twin technology which describes digital replicas of physical assets created from real-time data. These models built either in unsullied data form or as explorable 3D diagrams remain vital competitive differentiators in industrial IoT applications (Suppatvech et al., 2019). Digital twin technology is beneficial in reducing costs and downtimes. If, for example, a tiny but critical component of an industrial installation fails, it can take prolonged periods to trace the fault and fix it. Such an installation has a representative digital model stored in a digital twin, so sensors can inform the engineers in advance of the impending fault, its location, and how to maintain it quickly. This kind of technical know-how can lower operational costs and downtimes, hence, is useful in business operations.
Additionally, IoT can help reduce business operational costs and downtimes by shifting away from scheduled to predictive maintenance. Traditionally, the maintenance cycle involves equipment breaking down, halting production, while the maintenance technicians are waiting to find and repair the faults. Incorporating the Internet of Things devices into the production floor machines with sensors to monitor such aspects as usage, uptime, inventories of parts, and energy consumption, completely changes the old maintenance routine (Krotov, 2017). Through prompt notifications of disturbances in the established systems, costly unplanned downtimes are avoided. Furthermore, money is saved since parts are only replaced based on the historical data or when they begin to malfunction. Besides, the real-time alerts also minimize response times.
Boosting Efficiency and Productivity
The incorporation of IoT in business also boosts efficiency and productivity. Through the interconnectedness of a company’s vital processes, the management can quickly establish ways to increase output and efficiency. For instance, in a fleeting business, a company can detect substandard driver behavior. Consequently, it can work on promoting adherence to the organization’s policies and prevent driver related issues. This move will, in turn, improve the quality of services they provide. The IoT sensors can determine, record, and send fundamental driver and vehicle information providing the managers with real-time monitoring of the operations at every step. Moreover, cloud-based tracking technology can allow the operators to examine such risky drivers as speeding and harsh braking to help keep the vehicles in their optimum conditions (Suppatvech et al., 2019). The live access to the fleet data, therefore, improves productivity by solving issues before they happen.
The use of real-time following of shipped goods with the Internet of Things trackers by logistics companies promotes these businesses’ productivity. By using IoT tracers that issue live updates, the logistics companies no longer rely on notifications at every supply chain step (Krotov, 2017). The knowledge of the exact place the shipments are, and where they are headed helps save resources, energy, and time. The organization can also use this information to issue instant updates to their customers. By providing notifications of potential delays and reducing the risks of losing goods on transit, businesses improve customer relations.
Legal and Social Issues
The extensive use of Internet of Things devices, which is enabled by cloud computing, creates numerous legal and social issues, especially for businesses. The IoT is ubiquitous, attracting users, absorbs them while failing to demarcate a way out. At the same time, the miniaturization of the IoT devices allows them to avoid inspections, audits, accounting procedures, and quality control mechanisms. Moreover, their ultra-connectivity is characterized by numerous intertwined connections that create loops over which large data quantities are transferred and which may be used maliciously (Suppatvech et al., 2019). Besides, IoT’s decentralized nature makes it difficult to tame due to the many hubs and extensive data. This decentralization further makes it harder to regulate IoT, which can significantly hinder businesses’ growth.
Conclusion
The Internet of Things involves the interconnectedness of various physical objects through the internet allowing for real-time communication and data collection. Different business sectors, including retail and logistics, can adopt IoT devices to increase productivity, reduce operational costs and minimize downtimes. Most importantly, the IoT can be by most businesses to improve customer relations and experience. Due to the large amounts of data collected and transferred and the ultra-connectivity, IoT in the industry is particularly prone to social and legal issues.
References
Bidgoli, H. (2015). MIS (6th ed.). Cengage Learning.
Krotov, V. (2017). The Internet of Things and new business opportunities. Business Horizons, 60(6), 831-841. Web.
Suppatvech, C., Godsell, J., & Day, S. (2019). The roles of internet of things technology in enabling servitized business models: A systematic literature review. Industrial Marketing Management, 82, 70-86. Web.