Benefits and Obstacles of Implementing IoT Technology into Your Business

The Internet of Things, also known as IoT, is revolutionizing multiple sectors including healthcare, energy, automotive, manufacturing, and transportation. It also is transforming a variety of household equipment including air tracking, door well cameras, security systems, power plugs, thermostats, ovens, and countless more. In the next decade, it is expected to continue to offer new opportunities for digital business innovation, many of which will be enabled by new technologies. By the end of 2030, Gartner predicts there will be more than 50 billion IoT devices. Verified Market Research predicts the IoT market will surpass $1300 billion by 2026. During the same period, $4–11 trillion in economic value is anticipated to be produced. IoT is the most promising technology with immense potential, according to KPMG’s innovation survey, with respondents believing that it is responsible for the most significant business transformations.

Top 5 Benefits of IoT in Businesses

IoT development services have significantly impacted businesses across various industries, revolutionizing operations, enhancing efficiency, and creating new opportunities.

Here are some ways in which IoT benefits businesses:

1. Enhanced Operational Efficiency and Profitability

IoT enables businesses to gather real-time data from sensors and devices to monitor and optimize operations. This data can help improve efficiency, reduce downtime, and enhance productivity. For example, in manufacturing, IoT sensors can track machine performance, predict maintenance needs, and streamline supply chain management. 83% of IoT-powered organizations, according to DataProt, claim to lower costs and increase worker productivity. According to research by Aruba, 75% of businesses that adopted IoT saw increased profitability.

2. Improved Decision-Making

IoT-generated data gives businesses valuable insights into customer behavior, product performance, and operational processes. These insights enable data-driven decision-making, allowing companies to respond quickly to market changes, personalize customer experiences, and identify new revenue streams. IoT data managed by ML eliminates bias from business decisions by providing information based on facts and data trends. Further, machine learning helps make informed decisions in real time by providing insights from relevant and meaningful data.

3. New Business Models and Revenue Streams

IoT has led to the emergence of new business models and revenue streams. Companies can offer IoT-enabled products as a service, rather than selling them outright. For example, instead of purchasing a car, customers can subscribe to a car-sharing service. IoT data can be monetized by selling insights or providing value-added services based on the collected data. In fact, according to a Forbes Insights poll, 60% of businesses are expanding or transforming with new lines of business owing to their IoT activities, and 36% are contemplating potential new business possibilities.

4. Ensures Workplace Safety and Efficiency

IoT devices can enhance workplace safety by monitoring conditions, detecting hazards, and alerting employees to potential risks. For example, sensors can detect gas leaks or abnormal temperatures, ensuring a safer work environment. IoT can also optimize energy usage in buildings by adjusting lighting and HVAC systems based on occupancy levels, leading to energy savings. IoT networks can be used to connect CCTV cameras and establish a robust surveillance network. Automation, deep learning, and computer vision can be used to further improve this network and produce unique security solutions. For instance, the ALERTWildfire network, an AI-based fire prediction system, is becoming increasingly accurate over time.

5. Enhanced Customer Experience

IoT enables businesses to create personalized and interactive experiences for customers. For instance, smart home devices can adjust temperature and lighting based on user preferences, while wearable devices can provide personalized health and fitness recommendations. IoT also enables proactive customer service by detecting and resolving issues before customers are even aware of them. By giving customers real-time updates on product availability or delivery status, IoT enhances the customer experience. Additionally, IoT-enabled devices can gather user feedback and produce insights that can aid businesses in improving their services and products.

Obstacles in the IoT Landscape

The benefits of IoT exceed its drawbacks. Although sending your specifications to an IoT app development service provider is simple, it is vital to be aware of the challenges ahead of time to be effectively prepared. Following are a few of the typical challenges encountered when implementing IoT technology:

Security Concerns

IoT devices are often vulnerable to security threats and breaches. Poorly secured devices can be exploited by hackers, leading to data breaches or unauthorized access to critical systems. Prior to purchasing, it’s essential to confirm the security of IoT devices. There are several security issues that need to be resolved, including encryption, network security, data storage, user anonymity, access, and other issues.  Ensuring robust security measures, such as strong encryption, secure authentication, and regular software updates, is crucial. Businesses must simultaneously ensure that their use of IoT equipment and the data they gather adhere to regulations like the General Data Protection Regulation (GDPR).

Interoperability

IoT devices come from various manufacturers and often use different communication protocols and standards. Ensuring interoperability between devices and integrating them into existing IT systems can be challenging. Compatibility issues may arise, necessitating the development of middleware or the adoption of standardized protocols.

Scalability

Implementing IoT technology involves connecting numerous devices and managing massive amounts of data. Scaling the infrastructure to accommodate many devices and handling the increased data traffic can be complex and require significant investments in hardware, networking, and data management systems. In the modern IoT era, everyday objects are now connected to one another over the internet. Big data analytics and cloud storage are required for the interpretation of the raw data obtained from these devices.

Technical Expertise

A crucial aspect of effective IoT adoption is having the technical expertise to configure devices for optimal performance and ensure they do not have security vulnerabilities that can be exploited. IoT integration is listed as the main challenge in a Gartner survey, with 50% of the organizations admitting that they lack dedicated people, processes, or policies to integrate and utilize the technology. A poorly configured device can disrupt business operations and ultimately render an update ineffective.

Power Consumption and Battery Life

Many IoT devices are battery-powered or have limited power sources. Optimizing power consumption to prolong battery life is crucial for the continuous operation of these devices. Balancing functionality, performance, and power efficiency can be challenging during the design and deployment phases.

To Summarize,

Organizations can use IoT to increase productivity and efficiency, provide fresh perspectives on consumer behavior and pain points, and open new business prospects. Despite the challenges associated with IoT adoption, businesses stand to gain significantly from this technology. Organizations can leverage the disruptive potential of IoT development services by combining technological know-how, support infrastructure, and cybersecurity protocols. In a time of perpetual invention and constantly changing technology terrain, businesses can future-proof their operations through the Internet of Things. Take advantage of this opportunity to interact with Travancore Analytics’ technical experts to learn how IoT development solutions could benefit your business.