The Internet of Things (IoT) is a phenomenon driving new opportunities and transforming businesses worldwide. IOT offers myriad technology solutions in the mobile, cloud, security, IT, and big data spaces that is connecting the unconnected. Though it is easy to get excited about the vast opportunities that IoT presents the fact remains that these very opportunities can become posers to enterprises. A question, therefore, remains to be answered, i.e. how relevant is IoT to a business today!
This two decade-old phenomena, with a name coined by MIT professors, has been used to describe a world where `things’ (devices or sensors) are connected and able to share data, to provide business insights. These insights or invaluable intelligence is what IoT is all about.
The ripples of IoT have already been felt. Costs of hardware components have fallen with increasing volumes. B2B enterprises are experiencing increased value with software becoming smarter enriched by high-level data analysis capabilities. Connectivity, as we all know, is proliferating. Mobile operators too are embracing IoT and cloud solutions are bringing down costs while increasing scalability and flexibility. To summarise, the Internet of Things has the potential to create economic impact of as much as $11.1 trillion per year by 2025, according to McKinsey Global Institute. [http://www.mckinsey.com/business-functions/business-technology/our-insights/the-internet-of-things-the-value-of-digitizing-the-physical-world]
Demystifying the hype, one has to arrive at the conclusion that the hype actually understates the full potential of IoT. This is because the process of unleashing IoT’s full potential calls for technology disruption. It requires a paradigm shift in the way one views one’s processes and systems and then aligning these to unleash the full potential that IoT has to offer.
A good step forward to start with, is to stop thinking of IoT from a macro level as billions of devices producing countless data, and instead to think about how one single piece of data or knowledge about your own business, your processes, sales and customers can provide value to your organization. IoT can play a critical role in maximizing this very value derived from your own systems and processes. IoT is suddenly so much simpler to understand!
Secondly, data is intelligence and unless it is used it cannot provide magic answers. Most organizations do not have the bandwidth to unravel this information. However, IoT provides this information and it is up to an organization to use this. This information is gleaned from one’s own systems and processes and that’s its secret sauce.
Don’t miss my next blog which outlines the new technologies that IoT is enabling and digitization solutions which are blurring the lines between technology companies and other types of businesses, helping to create new business models.