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3 ways IoT means true business transformation

Added to IoTplaybook or last updated on: 02/03/2020
The IoT is All about AI

The first modern technological wave gave us mechanization and the second delivered electricity and mass production. While we’re still realizing the massive impacts of the third wave of computing change, with its enablement of mobile and cloud solutions, we’re at the same time inviting the intelligence wave along with it—a blend of cyber-physical systems, automation, artificial intelligence and, of course, the IoT.

The Internet of Things (IoT) will change organizations more than Six Sigma or agile methodologies or social media. Need proof? Worldwide spending on digital transformation technologies like IoT should reach $2 trillion next year, according to IDC.

As mass standardization continues in the space, often things turn toward the technology that enables it.

However, IoT is not a vertical market, an application, a product, or a technology; IoT is a concept, where a connected object produces data that can lead to actionable insights. And these insights enable customers to transform their own business models and open up new opportunities.

Because IoT solutions have the potential to transform a customer’s business model, it means that today, every single company can evolve into a technology company. On an enterprise level for any business, digital transformation can:

Boost efficiency while reducing costs

One of the most immediate ROIs of the IoT lies in the cost reduction and productivity boosts from automation and integration. Utilizing sensors on legacy systems to derive new insights can ensure organizations gain operational efficiency everywhere from their workforce utilization to energy consumption. Plus, this frees up resources to reinvest in new business innovation.

Improve customer experiences

To meet or exceed the expectations of ease and 24/7 accessibility, companies can leverage IoT-enabled big data analysis. That analysis can help businesses streamline workflows to better react to urgent issues or personalize proximity-based marketing campaigns. These advancements will free up personnel resources to interact with customers and better anticipate their needs, enhancing satisfaction and engagement.

Illuminate new business opportunities

Data, and the monetization of it, spells deep revenue opportunity for businesses. The massive datasets that organizations gather can help them gain a better understanding of their own customers’ use cases and preferences. What’s more, analyzing that data for previously unseen insights can also spark new products and services to create value for customers and recurring revenue for businesses.

Digital transformation through the IoT has gone from buzzword to competitive advantage to table stakes. When businesses realize the business benefit to being a part of the connected future – and that there are partners to help get them there – that’s when they can truly gain greater operational efficiencies, significant cost savings, greater customer engagement and more.

 

Avnet

This content is provided by our content partner Avnet, a global technology solutions provider with end-to-end ecosystem capabilities. Visit them online for more great content like this.

This article was originally published at Avnet. It was added to IoTplaybook or last modified on 02/03/2020.