IoT is a network of devices that makes use of sensors, chips, analytics, software, online connectivity and applications to bring static physical objects to life. They constitute objects that are readable, locatable, recognizable and addressable through information sensing device and controllable through the internet. The internet is not only a network of computers, but it has developed into a network of device of all type and sizes i.e. vehicles, smart phones, home appliances, toys, cameras, medical instruments, industrial systems, animals, people and buildings.
The devices communicate and share information based on stipulated protocols in order to achieve smart reorganizations, positioning, tracing, safe control, personal real time online monitoring, online upgrade, process control and administration. The smart technology utilized in the IoTs has transformed all sectors key to the development of people and the world in general. The positive effects of the IoT has also been felt in the business world. The technology has enhanced operations in the business world by changing the manner in which information is received, collected and exchanged within the company. The business world has been transformed in the following ways;
Enhanced productivity and efficiency
The internet of things offers better information about every consumer in the market which in turn translates to better productivity and success in business. The devices within the IoT can be connected to each other which increases the rate at which data is collected and processed. The link between the IoT devices thus enhances efficiency and better productivity will then be realized. As long as the workers are experienced in operation and maintenance of the IoT database, work within the company is completed within less time. The IoT devices enable workers to execute much large tasks flawlessly which promotes quality assurance within the organization as there are no errors transferred to the product consumer.
Data sharing and perception
Data is a key component in any business organization. With the help of IoT, the acquisition, handling and exchange of data within the business sector has been transformed positively. The business operators are now able to acquire the data of the consumers and track their interactions with the organization. IoT has also transformed how the consumers relate with the company, since they do not need to be served physically by people but interact with the IoT devices installed in the company and get served. IoT has also enables the company know the consumer needs by tracking what they buy occasionally. This helps the company develop, diversify and innovate in order to suit the ever-changing consumer needs. The company also can evaluate the mechanisms they can use to market their business and expand.
Inventory tracking and management.
Initially, in the absence of the smart devices and the IoT it was difficult for the business owners to keep accurate information of their inventory. For them to achieve accurate number and list of all items, they needed to employ more personnel which would increase the company’s wage bill. Currently, they don’t need to employ more workers to achieve efficiency in accurate inventories as the IoT devices can perform all the hard task of recording each and every detail of product present in the company. The company can now employ workers to work in scenarios where IoT would not succeed by itself without human interaction. The IoT devices provides automatically-controlled options which keeps track of any slight change in inventory thus enabling the company make accurate decisions regarding buying new stock or diversifying.
The IoT technology has reduced the need for commutations to work place. Some operations now within the business company does not need one to be physically present for the task to be performed. Inventories now have been integrated within the IoT devices and workers can perform duties, submit and make decisions that will aid in the success of the company. Every work done by the workers will reflect in the IoT device of the top-level management. The fact that people can work remotely away from the company promotes productivity and high profits in the company. Also, when workers are allowed to be flexible by working from any place they choose to, their satisfaction with the company is enhanced and they will be able to cope with other personal activities.
Cost and downtime reductions
IoT has reduced operation expenditure and downtime in the business world. There has been emergence of digital twin technology of physical assets build from real-time data in the business industry. The technology has revolutionized how problems are perceived and solved whenever they occur. Without the IoT the company would at most times be reactive to situations i.e. attending to problems as they occur. This mode of quality control is time consuming and the whole system within the company might have to be stopped when the problem arrives. However, the IoT has changed this through quality assurance in that, problems are foreseen way far before they occur and the engineers responsible notified. This ensures that problems and malfunctions in the industry are foregone and immediate address of the situation saves time and cost of maintenance of facilities in the company.
Improved business insights and customer experience.
Smart devices can now be connected simultaneously in manufacturing industries, supply chain and the agricultural sector. This opens up the business with multiple analysis and greater insights within the business operation. The companies are now gaining much experience on the operation of their business and how their consumers use the products they offer. This relations between the company and the products even after getting to the hands of the products enable business owner made informed decisions regarding their products. This kind of technology has been adopted by platforms such as Azure, AWS, IBM, Microsoft and google and even other companies shifting to edge computing.
The IoT devices enable the company in tracking devices owned by their customers and determine whether or not the customers are satisfied with their goods. It also helps predict the change in customer preference, thus enabling the company to invent and innovate more services. The relationship between the market and consumers determines the success of any company.
Development of new business models
The rise of IoT has added value to the services provided by the company. Most devices now developed by the companies, are internet-connected and give a feedback to the company during operation. With existence of information on experience between the customer and the goods, the companies are now able to improve the future design of their products. The IoT has also transformed how the companies view business and profit making by enabling them shift from conventional business models to new and advanced streams that will earn more profit. In conclusion, the IoT has greatly transformed the business world by enabling the companies unlocked the untapped potential in innovations and inventions. The technology has enables companies achieve high efficiency in quality control and assurance, high productivity and profits. Through this, the companies have also gained competitive advantages and improved customer experience and satisfaction. By interacting with other emerging technologies such as robotics, block chain and artificial intelligence, the functionalities of the IoT will be transformed in the business world.