How does the Internet of Things help in cost reduction?
One of the leading technologies on the rise today, the Internet of Things (IoT) is driving deep paradigm shifts in business processes.
This type of innovation has been used to ensure cost reduction and modernization for companies in a way that is both scalable and adaptable to market changes. In addition, it is crucial to support decision-making by managers.
Continue reading this article and find out how IoT has been applied to optimize cost management in corporations.
How does the Internet of Things work?
IoT consists of the use of devices that capture data from the real world, such as temperature, energy consumption, among others. They are connected through the Internet and communicate with each other to provide intelligence to those who manage them. The great advantage of IoT is that it can be applied in many contexts, with real benefits for those who want to implement it.
The types of networks that can be used include Wi-Fi, Bluetooth, satellite, among others. Any other network could be used, as long as they provide secure means of communication.
In the objects, there are sensors that capture information and transmit it to a processing center. This paradigm also adds some challenges that turn into difficulties and obstacles to its implementation.
The Brazilian Industrial Internet Association conducted a survey last year that made these difficulties evident, especially in Brazil. Only 29% of the companies know about the application of IoT in industries and 65% still lack any sort of IoT implementation. When asked, respondents argued that the obstacles are the lack of guaranteed return on investment and the conservative companies’ culture.
Notwithstanding, the expectation is that the Internet of Things will continue to grow in the future. The trend is that it will move about $ 520 billion by 2021.
One reason for this is that the technology has proven very useful in different contexts. In an environment with many devices, for example, the sensor network enables sharing of information to optimize their own and other devices performance. This all positively affects agility in operations and the productivity of the organization, generating support to the daily production.
How does IoT help reducing costs?
The following are some practical examples of how the Internet of Things is applied to reduce costs in companies.
One of the main applications of this technology is in health services. It is possible to monitor patients’ medications and supplies and allow them to receive out-of-hospital care. Sensors help practitioners to develop proactive behavior in the face of symptoms, which helps prevent disease and costs.
An example of application is the Vaccine Smart Fridge system used to monitor the condition of vaccines and protect them with adequate cooling. Thus, it is possible to ensure that people are vaccinated safely.
Another case is the Blue Sky project, which seeks to monitor the progress of Parkinson’s patients in order to control information on reactions and symptoms.
The objects also enable the creation of intelligent spaces, connected to regulate traffic in cities and make emergency systems more efficient. Hence, the technologies help reduce the response time of the police and of professionals in medical emergencies, for example.
One example is the Workplace Advisor, which manages and optimizes workplaces using sensors and dashboards for analysis. The goal is to improve productivity and eliminate operational problems that hinder the workflow.
Croke Park is Ireland’s first smart stadium, with wind monitoring, fan insight analysis, drainage system control, and noise management, guaranteeing these systems do not exceed their limits.
IoT tools generate data that, when processed by other systems, have provided insights to management, which can make appropriate decisions. By identifying patterns in the analysis, managers can predict incident situations, such as when a device is in a poor state, requiring maintenance. Before even interrupting activities and causing losses, support is triggered to repair problems.
This ability is also due to the fact that the Internet of Things enables the analysis of assets in real time, which favors control in a more precise way. Thus, communication on the health of machinery is carried out at all times with the administrative center.
Therefore, there are less costs, since the company can produce much more and control the use of the equipment.
Another IoT main application is achieving more energy efficiency. You can configure sensors to signal when power usage exceeds a threshold, forcing a device to turn off automatically, for example.
By controlling the energy expenditure of each equipment in the system, companies can manage to reduce operational costs.
How to implement IoT in companies?
Here are some tips on how to install an IoT system in a corporation.
First of all, it is important to create a survey of the company’s needs and how IoT can actively help reducing costs. With due planning, the actions are carried out according to the objective, so that it is fulfilled in the best possible way.
Thus, the technology will adapt exactly to the main demands of the corporation, which helps maximizing the return on investment.
List the processes
This tip is associated with the first one, since it is a continuation of the needs survey. At this stage the manager must select the responsibilities of devices and sensors. This will help understanding how this paradigm will affect the organization and how it will benefit day-to-day operations.
This is also essential for optimizing employee assignments. You can then use the sensors to automate some tasks and allocate team members to more strategic jobs.
Create the infrastructure
An Internet of Things system consists of three parts: hardware, infrastructure, and applications. That is, it is much more than a simple set of sensors. Therefore, before deploying such a system in an organization, one must look at the management and processing architecture, which must comprise a robust infrastructure for analyzing information and enabling communication between the IoT network and people.
Find a Partner
It is also important to seek help of specialized companies for the safe and accurate installation of a system that meets needs without associated unnecessary costs. With an external team, your company’s employees can focus on their strengths, while the support team solves the issues related to network maintenance.
IoT is one of the emerging technologies that are part of digital transformation and is positively affecting organizations, delivering real benefits. Several applications can be made to achieve financial savings, but the implementation must be carried out carefully to deploy the network in the best way possible.
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