The Internet of Things — Top Benefits of IoT in Business

The benefits of IoT for a business are immense. Know more about how it works, examples, and disadvantages.

The benefits of IoT in a business are unlimited, regardless of whether it's an SMB or a MegaCorp. Many business operations are positive about its outcome with several others already implementing it. IoT technology is therefore expected to bring about an industrial revolution as it offers exceptional convenience in managing multiple operations simultaneously. 

Many organizations have witnessed unprecedented growth in their revenues backed by the IoT’s efficient management tools. The Internet of Things has kept businesses smooth and running and matching up with the ever-growing competitive market.

We’ll learn more about the top benefits of IoT in business operations but before that let’s get down to the fundamentals of the Internet of Things.

What is IoT?

The Internet of Things (IoT) is a virtual networking system in which various types of digital devices and systems communicate with each other via the cloud or internet connectivity. The objective of IoT is to enable digital devices to reciprocally share data and offer desirable structure and convenience to business management and human lifestyle. 

How does the Internet of Things work?

IoT operations need electronic devices or physical tools with sensors fitted to them. The special sensors operate on software supporting receptors, data analyzers, and actuators to help the devices run automatically. The process involves interaction, data collection, and sharing of information between devices and systems through secured communication protocols like HTTP or MQTT. On the other hand, consumers can monitor and control the devices or 'things' remotely — no matter where and how far they are. 

What are good examples of IoT?

In addition to the benefits of IoT in business, there are other sectors that are utilizing the power of the Internet of Things. Here are some areas as examples that stretch its sphere of influence.

• Smart city: With the use of technology, a smart city is a collective instance of IoT implementation. The AI concept contributes to building better infrastructure with relevant facilities like automated traffic control systems, smart water and electricity provisions, organized waste management, and not to mention meticulous healthcare and security services. It also engages in the creation of smart homes comprising automated appliances like refrigerators, air conditioners, lights, and security alarms that can be controlled remotely.

• Education: The concept of IoT is here to transform classrooms for students of today and the future. Many educational institutions presently incorporate a smart learning ecosystem including interactive display devices, tablets, digital boards, computers, and mobile-oriented syllabuses. Thus promoting eco-friendly practices by lessening dependence on paper, plastic, etc. Moreover, the benefit of IoT in education also involves the creation of virtual classrooms for students in remote locations.

• Healthcare: The Internet of Things acts as an absolute fitness solution for those in and out of medical premises. IoT-enabled devices, effortlessly gauge blood pressure, sugar level, heart rate, etc. Such handy equipment is highly useful for elderly and solo individuals. Moreover, doctors can closely monitor their patients' progress or otherwise prompt life-saving advisories and operations. Tagged with IoT, healthcare units can dexterously control critical aspects like hygiene, risk of infection, temperature, air contamination, and humidity.

• Retail outlets: Retail outlets based on the IoT framework can have comprehensive and real-time analytics on consumer feedback. Consequently, a retail store can better regulate its store items and product inventory. The Benefit of IoT for business doesn't end there. The IoT devices assist in offering a higher level of in-store customer experience, hassle-free payment processes, efficient management of the supply chain, and advertising campaigns.

What are the benefits of IoT in business?

The main benefits of the Internet of Things for business are to smartly utilize the human workforce and automate management or digital devices "Things" to attain efficiency and save time and money. Nonetheless, the advantages of IoT for organizations are limitless. Here's a roundup of some fundamental aspects where the technology outputs remarkable results for a business.

1. Business management

A business setting with a network of smart devices (IoT) performs far better than an organization without it. The AI-powered digital devices and systems exchange highly beneficial data for the management unit. The useful data further enables entrepreneurs to take informed decisions and prepare smart plans for immediate and future services and solutions. There are several office and industry management suites that offer all-in-one solutions to any physical or conceptual issues. These smart interfaces smoothen business operations and lighten workload making management more data-driven and efficient.

2. Productivity

As aforementioned, various IoT-driven systems can be integrated to boost business processes. The benefits of IoT in business translate to minimizing human involvement in any given task. Common official responsibilities can be handled by industry-centric devices supporting Artificial Intelligence. This allows a firm to direct its manpower to focus on completing other critical projects that need creative and soft skills. In a nutshell, the Internet of things doubles employees' working abilities thereby increasing business productivity.

3. Cost-cutting

Business management at a comparatively low cost is one of the appealing advantages of the Internet of Things. Many industries consider it as the best incentive to expand business prospects. By reducing expenses on human resources, IoT also ensures the smart use of general resources for any business. For example, automating power and water consumption cuts extra commercial expenses. In addition, it streamlines various processes in manufacturing operations as well as expedites the process of chalking out accurate financial review reports. 

4. Labor management

This aspect chiefly argues for the safety and welfare of the labor force in manufacturing sectors. Any equipment tagged with AI censors automatically transmits information on its current health and maintenance status. Most importantly it prevents industrial disasters including human errors and casualties. Opting for smart equipment is a priority for any production hub to competently exploit the top benefits of IoT in business. Deployment of smart systems and devices in the entire production line creates distinct collaboration between machinery and humans. The WFM strategy further aids in monitoring individual workers' performance and progress.

5. Equipment maintenance

Embedding factory machinery with IoT-powered sensors like RFID is highly beneficial for production-centric businesses. RFID or Radio Frequency Identification sensors transmit data on equipment performance status to nearby receptor servers. The IoT system then predetermines the maintenance routine of industrial hardware, if required. Moreover, smart sensors can spot errors on any machinery beforehand. Obviously, this pays off well for the industry by averting potential mishaps and unexpected interruptions in the manufacturing process. With that, IoT also reduces the repair time of faulty equipment and its components.

6. Consumer services

With IoT connectivity, a retail store can access key information, such as customer preferences and product reviews. This allows the outlet to personalize the shopping experience accordingly to gain loyalty and increase customer footprint. The benefits of IoT for a business go beyond boosting sales — they include improved inventory management and creating innovative retail ideas. Additionally, it’s easier than ever to stay in touch with customers as the AI system assists in understanding consumers’ psychology and buying habits. Retailers can keep their customers updated with product information, promotions, and discount offers to promote engagement. As a bonus, the IoT concept can significantly contribute to the most sought-after techniques of Cross-selling and Upselling.

It's exciting to be aware of the top benefits of IoT in business, however before setting up an ecosystem for automated devices and systems it’s important to also know about its limitations. 

What are the disadvantages of IoT?

Every concept has its pros and cons — so does the Internet of Things. Since we’ve already discussed its hefty benefits, let's explore the aspects where it tends to wear thin.

Weak data security 

IoT networks can be vulnerable to cyberattacks, hacking, information breaches, and unethical data tracking. As a result, organizations may face events such as the loss of sensitive user data like credit card information and account passwords. This forces organizations to allocate additional resources and funds for various countermeasures. They include restoring management systems, revising business strategies, creating fresh data backup systems, and building a solid software and hardware infrastructure to protect against potential cyber threats.

Dependence on the Internet

The fundamental weakness of the Internet of Things is its dependence on Internet connectivity. Serious problems can arise when an enterprise faces a connectivity issue. This can lead to situations such as poor or no data collection, compromised data security, operational bottlenecks, project failures and so on. Similarly, data bandwidth can be problematic at times when more digital devices or systems are added. This is because plugging more devices into the network requires additional bandwidth for all the devices to communicate efficiently. Too many automated systems sharing a single network can result in potential data loss and lags due to congestion in the bandwidth.

Complex operating nature

The IoT technology is based on complex algorithms driven by high-level coding and programming languages like Java and Python. Malfunctioning of a single connected device accounts for an inaccurate transfer and collection of data across the entire network. Although the AI networking system helps in conducting multiple tasks simultaneously, it is vulnerable to even a slight glitch in its functioning. In the event of a minor miscalculation by the IoT system, the entire operation unit can come to a halt causing a major setback to a business. Further, important client projects and services may face a deadlock or be left pending, affecting a business’s market credibility.

Higher implementing cost

While the benefits of IoT in a Business are immense, it can still be costly in terms of setting up a customized network and integrating various automated devices. For example, deploying IoT technology in business operations requires purchasing many kinds of electronic gadgets in addition to hiring an entire team of professionals to build complex automation infrastructure. Besides that, the need for regular tech support services from different device manufacturers for maintenance purposes consumes a higher amount of time, let alone the cost it bears. 

Conclusion

The benefits of IoT in business are unlimited, and it's truly transforming the concept of managing operations across industries. Today, IoT is progressively contributing to various organizations by streamlining business operations, reducing costs, providing real-time analytics, monitoring devices and systems remotely, enhancing work life and safety, and saving time on rigorous tasks. Therefore, it's fair to say, "The future of doing business will be intertwined within the network of the Internet of Things." IoT is futuristic and aims to help businesses become more customer-focused, efficient, and productive.