IoT (Internet of Things) is the latest buzz in the field of technology. Today companies and governments are recognizing the benefits of connecting their devices to the Internet. How did the need of connecting inert devices with the Internet arise?

To know the answer, let’s start by understanding what is IoT? What are the benefits of IoT?

The definition is quite literal, it means connecting the things - light bulb to cars with the Internet. Many IoT-enabled devices like Amazon Echo, Google Home has already made its way to our homes.

Almost twenty years ago, many small companies had to change its way towards world wide web or face extinction. The similar kind of situation has arisen for the companies. Now, the time has come to integrate internet of things in business or lag behind in the race. IoT is certainly going to be the next big thing in coming years.

Recently Deloitte in its TMT prediction 2017, stated that market value of IoT in India will touch $9 billion dollars. Companies are also now collaborating with each other on IoT. One such collaboration happened recently when IBM and Seebo joined hands on IoT. This shows how much companies are eager to work on Internet of Things.

IoT is surely going to change the way we do business today. Here lies the question whether your business is ready for IoT? Let’s dig deep and find out the impact of Internet of Things on business.

5 ways in which Internet of Things will bring change in business:-

1. Enable Smart Business Operations and Devices

Today, companies are shifting towards creating smarter options for its consumers. A major portion of IoT is about sensors and now these tiny innovations have started to mimic the ultimate sensing machine ie.human being. The sensor technology is now used almost everywhere including smart mobile phones, automotive systems, climate monitoring etc. These tiny chips record and send data back into the cloud. Companies collect these data from sensors and analyze how the products or equipment are used and what users will want in the future.

Rolls-Royce has designed the aircraft engine which contains sensors. Working with these sensors includes - detecting the malfunction in the engine and sending the data back to the monitoring stations on the ground. Microsoft is using a software that constantly collects data to know about the features that are being used for its products. It helps them in evolving their products and focuses on the most popular features.

2. Efficiency and Productivity

IoT has already arrived and things are about to change, mostly for good. Companies will gain tremendous efficiency from IoT. It can also help them in limiting the waste factor in global economics in more effective ways.

Things which are connected to the Internet can communicate how they are being used. This will help the industries to analyze the product and make changes accordingly.

It’s all about data, more data, even more data!! Predictive analytics will help the companies to improve the design and minimizing the failure. The feedback will help in increasing the efficiency and value of the products.

IoT is based on location, which gives it potential to render business processes. This gives a constant access to geolocation data which makes it easy for businesses to track locations ultimately increasing productivity and efficiency.

3. Internet of Things Business Models

In recent years IoT has evolved as one of the key players in the field of technology. This has urged companies to rethink their business model.

Many big giants like Google, Microsoft, and Apple have already started adopting the IoT-based business model. Gartner survey 2016, showed that 43% of companies had plans to implement or using IoT.

One such business model, fitness bands are new in the market and the products like Fitbit and Jawbone are already collecting health statistics and Fitness habits of individuals, at the same time sharing those with their strategic partners.There are ample amount of companies who are trying to get that kind of data for marketing and different purposes.

With this expansion of IoT market, many predictions have been made that IoT is likely to explode by 2020. Businesses have started taking advantages of IoT which offers - lowering of operations, increase in production, and developing new market offerings.

4. Practical Enterprise applications of IoT

Ever Imagined - How big is IoT? Stats says it all, according to a Gartner survey by 2020 there will be 20.6 billion connected devices. These survey and predictions give us a glimpse of what impact it is going to have on us.

Coca-Cola has already connected a third of its vending machine to the internet. This will help them to know which machine is the busiest, and through facial recognition and countless payments, they can know about the varieties of drinks which are selling the most.

IoT has found its usage in companies ranging from insurance companies, local authorities, gyms and beverage companies. According to a study done by Aruba, a Hewlett Packard Enterprise revealed that around 85% of businesses have plans to implement IoT by 2019.

Consider reading this post, as it explains some of the best uses of IoT in the enterprise.

5. Inventory Tracking and Management

We are seeing a revolutionary change in the way of doing business. IoT has made it possible and companies have now started tracking and managing their inventory. It will be helpful for those companies whose business relies on warehousing, manufacturing, or storage. According to a trend report published by DHL and Cisco, Internet of Things will give a boost of $1.9 Trillion to Supply Chain and Logistics Operations.

Right now companies are bound to use remote scanners and other high-tech devices for workers to keep track of the inventory. With the integration of IoT, the tracking and communication with the item will increase enormously. Though IoT is still in its early stage, it has a lot of potential for both consumer and company.