As SVP, Professional Services at BairesDev, Damian oversees the entire customer relations life-cycle, safeguarding the company’s operations.
-Siri, tell me about IoT.
-What are you looking for?
-I am looking for ways to apply it to different businesses.
-Here is what I found on the internet.
Sound familiar? This is because the Internet of Things (IoT) is everywhere. From smart home appliances controlled by voice commands, like Amazon’s Alexa, to smartwatches, we are surrounded by many connected devices.
IDC states that the global IoT market is expected to exceed $1 trillion by 2026. With that big pie at play, the rise of IoT technology opens a myriad of opportunities, from improved efficiency and productivity to new service offerings.
However, not all that glitters is gold, prays an old saying. This technology also comes with its share of challenges. With that in mind, I’ve decided to write this article to explore the benefits, challenges and considerations for businesses contemplating the move to IoT solutions.
But first, let’s explore what it can be used for.
Understand the practical applications.
Several industries have begun using IoT for applications other than smart houses or wearable fitness devices. Some examples are:
• Manufacturing. IoT is the backbone of Industry 4.0, enabling real-time monitoring and predictive maintenance of machinery, enhancing supply chain management and reducing costs. The IoT manufacturing market is expected to be valued at $1,495.65 billion by 2030.
• Healthcare. Wearable health monitors and smart implants are helping doctors and nurses improve patient care, monitor health remotely and provide personalized treatments. This market is expected to be valued at $289.2 billion by 2028.
• Retail. Retailers use IoT for inventory management, customer tracking and automated restocking. Think about Amazon’s smart shelves that can alert store staff when they need to be restocked and in-store sensors that can monitor customer behavior to enable targeted advertising.
• Agriculture. Smart farming applications of IoT include remote crop monitoring, precision farming and livestock tracking, all of which can enhance yield and reduce resource consumption. This market will be worth $84.5 billion by 2031.
Analyze the opportunities and benefits.
Now that we’ve analyzed many different ways to use this technology, let’s look at their attributes.
IoT brings about improved efficiency. Sensors embedded in manufacturing equipment can monitor performance in real time, predict maintenance needs and prevent downtime. IoT devices can also monitor and control energy usage, saving costs and reducing environmental impact.
It allows businesses to have enhanced decision making by collecting vast amounts of data, enabling advanced analytics. Real-time insights from IoT devices can provide critical feedback about processes, customer behavior and market trends.
IoT can facilitate the creation of new business models and revenue streams. Companies can use IoT technology to offer new services, such as predictive maintenance or real-time tracking services, creating additional income sources and enhancing customer value.
Regarding this last benefit, my company recently worked on a couple of exciting projects. One of our clients develops software for school bus fleets, ensuring child safety with cutting-edge technological innovations. Its services include secure connectivity, security cameras, silent alarms, analytics and route planning tools.
Another client provides innovative mobility technology globally for tolls, traffic violations and registrations. It enhances transportation safety and connectivity for fleet management firms, operators and car rental companies. Both projects are great examples of developments that only exist because of IoT.
Consider the challenges.
Despite its significant potential, IoT does not exist without its own significant challenges. Some of them include security. IoT devices can be vulnerable to cyberattacks, leading to data breaches. That is why it is essential to implement security measures.
Another challenge is data management. The volume of data produced by IoT devices can be overwhelming, and all that information needs to be stored, managed and analyzed for it to be helpful. All of this presents additional complications.
There is also the interoperability issue. With so many manufacturers fabricating different IoT devices, ensuring they can communicate effectively is a significant challenge, especially if the companies behind them go out of business.
Finally, we must consider regulatory compliance. It is a critical concern when implementing IoT solutions in specific industries, like healthcare and finance. Businesses must ensure they meet all regulatory requirements related to data privacy and security and have plans in place to adapt if these regulations come after they procure a device that is outside the said regulations.
Even though my company specializes in software development, we are not immune to these challenges. Some things we’ve done to mitigate them are using comprehensive and real-time assessments of all devices on the network with the help of AI, only purchasing devices that fit into the same ecosystem, compartmentalizing IoT devices to increase control and implementing multi-layered security applications.
Apply it to your business.
With new devices entering the market every day and the ever-expanding possibilities of what you can do with them, you may want or need to integrate IoT into your business soon. In fact, around 50% of the companies in many industries have incorporated IoT in their operations in some way.
To do that, you need an experienced partner to guide you and develop customized solutions. The first step is ensuring the vendor has verifiable experience working with IoT projects. You can confirm that information by asking for case studies or referrals to some of their clients.
The ideal partner should offer to develop the project for you and strategize for it. It should indicate the right way to invest in data analytics and management, indicating systems capable of processing incoming data in real time. And it should also offer solutions for protecting all collected data.
Conclusion
IoT offers immense opportunities for businesses to drive growth, enhance efficiency and provide innovative services. However, both the benefits and challenges must be managed so the latter doesn’t outweigh the former. As with any disruptive technology, the key to successful IoT deployment lies in understanding its potential and pitfalls and getting help from a trusted and experienced partner. Embracing IoT, however, is not just about adopting new technology; it’s about preparing for a new era of business.
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