Expanding digital business with IoT

Internet of things is all set to completely transform the way we perform our daily activities by automation. It is gaining fast attention from businesses, consumers, and even governments. IoT has the potential for driving efficiency and unlocking new opportunities in digital business.

IoT is referred to the intersection of the virtual and physical worlds via connected devices. IoT has sparked the interest of several businesses and institutions. In 2016, approximately 65% of global companies that were surveyed were in the process of implementing or had already implemented IoT solutions. Today, several digital business leaders are making IoT investments for improving safety and security along with enhancing the efficiency of operations. Initial IoT implementations mostly tend to be product or device-centric such as sensors that are used to improve operations with autonomous machines. But, as the adoption of IoT grows and technologies mature, companies start focusing more on customers, allowing people and organizations to customize devices and services however they choose, thereby deriving maximum benefits from this closely connected ecosystem.

Take a look at how IoT helps in expanding digital businesses

1.   IoT and Object Self‐Service

This is one of the capabilities of IoT that allows devices to independently place orders on the Internet. For example, a heating system can order oil refills as soon as a certain level of liquid was noted in the oil tank. The goal of self‐service no longer applies only to the customer; rather now IoT devices can serve themselves too. Business processes can be simplified with such capabilities by ordering of refills of consumables automatically.

2.   Remote Usage and Condition Monitoring

As smart devices can transmit data about their own status or their environment in real time, this allows detection of errors preventatively and also facilitates observation of resource usage and the remaining inventory of consumables. Until now, this technology was complicated and relatively expensive but as IoT continues to expand, costs and expenditures required are diminishing, thereby making the application of IoT technology cost effective. An example of this service is when a computer accessories manufacturer, offers leases for laser printers, only pages that are actually printed are invoiced. In this example, IoT enables the application of the Pay-per-Use business model pattern. Thus, transmission of the relevant data to the supplier via IoT devices helps in providing the technical basis for the efficient implementation of digital business initiatives.

3.   Digitally Charged Products drive Digital Business

The components and applications developed through IoT technology are able to link digital services to physical products. These products or services may be offered by the manufacturer or a third party. The term digitally charged products refer to these products and services. These digitally charged products which are basically normal things charged with a bundle of new sensor‐based digital services are generating new value propositions.

For harnessing IoT’s potential, digital businesses will require innovative thinking, as well as revamp the business strategy, processes, and operating model. They must also start making investments in new capabilities and talent. Businesses should remember that along with early adoption of IoT, achieving strategic differentiation is crucial to reaping the long-term benefits of this technology.