Humans have demonstrated proven abilities in accomplishing a multitude of things from the stone age to digital age, by discovering fire to ‘cloud.’ Conversely, they can be unbelievably lazy at times and don’t like to get off the couch to find the remote control. Therefore, everything around us from buildings and cars to water bottles and hair brushes is increasingly being controlled by sensors leading to ‘Internet of Things (IoT).’ It’s obvious that IoT is transforming people’s lives at every corner.
“IDC predicts that by 2020 there will be 30 billion connected ‘things’ and a revenue opportunity of $1.7 trillion for the ecosystem.” Click To Tweet
IoT– Sweeping the Business Landscape
Advanced technologies, affordability of hardware, and the feasibility to use contemporary programming languages are leading to rapid expansion of IoT products. Here are a few examples that talk about the scope of IoT and its impact:
- IoT for Software Development
Software development teams typically gather project requirements from internal sources like pre-sales or R & D, and external sources like customers or subject matter experts with diverse industry and market experience. Requirements are also gathered based on customer’s product usage trends. Companies often play a guessing game while gathering requirements and struggle hard to live up to customer expectations. Instead, Internet of Things can act as a crucial source for gathering requirements by offering insights into how the software interacts with other APIs. A wide range of IoT products offers insights into consumer behavior while utilizing data from the ‘connected life’ of the consumer and helping businesses to offer enriched customer experience.
- IoT to reinvent Personalized User Experience
IoT represents data and personalization which can be leveraged for business advantage. IoT opens new doors for businesses to go beyond the CRM and explore a world of a billion connected devices and the customers behind them who are willing to share their personal data. As the IoT landscape expands, relevancy becomes a key differentiator for companies to be successful. Businesses are already designing their strategies to utilize the data received through IoT technologies, thereby building better products. One good example is Tesla Motors, a manufacturer of connected cars. It encourages its customers to submit requests on customized features they would like to have in their cars. Recently, one of the Tesla’s customers submitted a request for crawl feature, an advanced feature that facilitates off-road driving with slow cruise control to maintain a constant speed without the need for the accelerator in extreme conditions. Tesla used this feedback for product improvement by updating the entire fleet of cars with the crawl feature.
- IoT for Industry 4.0
With the emergence of the fourth industry revolution, aka Industry 4.0, IoT has gained a lot of traction in the manufacturing sector. Industry 4.0 signifies the current technological trends – automation and data exchange – in manufacturing technologies. It includes cyber-physical systems, cloud computing, IoT, and cognitive computing. Companies are already leveraging this technology to turn data into a strategic asset for them. One ideal example is Rolls-Royce; it is tracking everything from fuel-flow to aircrafts’ altitude by embedding its product lines with IoT sensors. The data is immediately fed to the operational centers and then leveraged to optimize products and make informed decisions.
IDC expects global IoT spending to see a compound annual growth rate (CAGR) of 15.6% by 2020, reaching $1.29 trillion.
“The manufacturing industry will lead the way, spending an estimated $178 billion, and transportation is next at $78 billion.” Click To Tweet
Businesses that embrace IoT will have the first-mover advantage. IoT is a strategic enabler of digital transformation, helping businesses create customer-centric business models and enrich customers’ experience.