Understand the impacts of the Internet of Things on businesses
The Internet of Things is today the most innovative resource for data collection and improvement of business operations. The sensors and devices connected to the Internet allow companies to receive up-to-date information on critical areas of the business, such as logistics and inventory, and offer optimized services to their customers.
The great amount of data collected automatically by these devices is valuable for managers to find bottlenecks in corporate processes and opportunities to save resources.
In this guide, we’ll show you everything you need to know about the Internet of Things to gain valuable insights and make your business more competitive.
What is the Internet of Things?
Internet of Things, or IoT, is a fairly comprehensive term. It refers to everything that is connected to the web and can be used both to refer to a smartphone or to a Smart TV.
In practice, all devices that communicate to each other are part of the mesh that make up the Internet of Things. However, you’ll see the IoT acronym more often when it comes to new technologies such as sensors and wearables.
Things can be as diverse as a speaker that performs automated functions such as recording messages and creating voicemail to-do lists or a refrigerator that sends an alert to your phone telling you to buy eggs.
The combination of an item with a system capable of managing part or all of its functions, gathering information about use and learning from routine processes, is what makes an object a device of the Internet of Things.
According to Caroline Gorski, head of IoT in Digital Catapult, Internet of Things is the name we give to the relationship between “data, networks, and devices”.
How does this technology impact companies?
Every company runs processes, which could be automated, every day. We’re talking about complex tasks such as inventory maintenance and data management. IoT has an incredible potential to optimize what goes on inside the business, reducing human error and solving bottlenecks in processes and operations.
Check out some of the use cases for this solution!
Automatic data capturing
Integrating data is one of the most difficult tasks for businesses. Since most Internet devices are accessible via their IP, they can automatically send information about how they are used, allowing the tracking of all patterns of interaction between devices.
This ensures more data access, clear records and accurate insights. Human error is eliminated, since systems themselves upload data to the cloud in real time.
Improvement in logistics systems
The Internet of Things sensors can also integrate with companies’ vehicles, automatically sending data to logistics systems that evaluate the best routes, provide accurate delivery times to customers, and estimate the cost of fuel in freight transport. This solution helps businesses reduce costs and deliver better services.
Efficiency in inventory management
The main highlight of IoT is the use of sensors, which can be attached to various equipment to facilitate their monitoring. In large warehouses, these sensors indicate where a product is located and how many of them are available in stock.
Some American stores already use sensors also in products available in showcases and exhibitions. When checking in a box of products, they indicate the need to process an item inside the box automatically.
Companies that sell Internet of Things devices can provide better customer service because they have access to resources for performing preventive and predictive maintenance. Upon noticing a software or hardware failure, the system automatically notifies the technicians who can schedule a repair, without the need for a customer to call the company’s client support service.
The provision of proactive services in the field works as a differential to win over the customer and his or her loyalty.
What to do to implement IoT in your business?
Implementing Internet of Things in a successful way within the business is the work of specialized consultants who have experience and mastery over what this technology can do and what problems it can solve within your company. In general, these business partners work on steps to establish a customized IoT strategy for each organization. See next what these steps are!
Setting Business Objectives
As with any other business process, defining what problem will be faced with help from the Internet of Things is the first step. Planning and managing expectations are critical to the solution provider’s understanding of what resources to use and how they will impact efficiency and productivity within the organization.
Identification of solutions
Next, the sensors and equipment available on the market are identified to handle the challenges that the company faces. Based on the objectives and expectations of the management, a layout of the devices mesh that will be part of your company network is proposed.
Choice of KPIs
Remember when we mentioned that IoT is the combination of data, networks, and devices? During deployment, you need to define what data is relevant and how it will be used to generate insights.
Therefore, it is important to have an experienced team to conduct the process and hire a consultant who, above all, understands how well data collection, integration, and analysis work and which KPIs should be observed.
Creation of a governance strategy
Data is valuable, and when a company invests in automated solutions to manage processes and operations important to the business, protecting the data is essential. It is also up to the vendor to develop a data governance strategy that establishes who will have access to what information and how Things will integrate into the company’s current data policy.
The use of the Internet of Things within companies will help them become more efficient and productive and will have enormous importance in integrating data from multiple areas of the business.
Information generated by smart devices will not only serve to automate tasks within the enterprise. They will also generate important insights for better decisions to be made in the future and to optimize data-driven strategies.
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