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The Internet of Things (IoT) and business success

Jul 10, 2018

IoTEven though we are still far from Intel’s prediction about the Internet of Things (IoT), which stated that by 2020 there would be 26 devices per person, there can be no doubt that the Internet of things is here to stay and that it is a technology that is set to increase in the coming years.

In the same report in which Intel made this prediction, it also placed 40.2% of these devices in business. This is reasonable when you consider the increased efficiency and profit-boosting potential that IoT holds for companies that incorporate it into their business models. Yet it goes much further than this. No company can ignore the fact that the adoption of IoT is not only smart, but also a necessity to remain competitive in today’s business landscape.

Not only must this technology adapt to company business models, it is also set to radically change the nature of the vendor-customer relationship. We’ve all seen the latest developments in driverless cars and trucks. If we foresee a future in which driverless cars become a reality on our roads, and that these vehicles will be able to decide, for example, which gas station to go to, customers will effectively start doing things, and not people.

Internet of things and customer experience

According to a report by Forbes Insight: The Internet of Things: From Theory to Reality, the state of development of significant IoT programs in companies is around 40% globally, with Europe and America being the most advanced continents – both with 44%. And in relation to what was described above, one area that has seen the most IoT development is customer experience – as the technology can be used to customize products, predict demand and digitize products and services. The sum of these factors contributes to allowing companies to prioritize customer experience and provide customers with a premium, totally personalized experience without too much human effort.

Areas and main factors for companies

The Forbes report also gives us a few hints as to what sort of issues need to be addressed by companies adopting IoT technology:

Business model: The IoT cannot be thought of as a technology that you simply buy and install. Companies must carefully study their business models in order to develop solutions that integrate this technology and that are also appropriate for their businesses.

– Talent: Successful implementation of these solutions requires the collaboration and involvement of the whole organization, not just the IT department. Companies therefore need one or more specialists who can act as IoT architects and who are able to collaborate with all the different actors involved, establish processes and thus achieve the sought-after success.

– Inevitability and a sense of urgency: It depends on how a company manages this technology as to whether the solutions will be a source of competitive advantage or disadvantage. For this reason, companies must instil a firm commitment and sense of urgency in every single employee.

– Cybersecurity: As interconnectivity and the number of devices grow, the number of points in danger of being pirated also increases. Any company looking to adopt and implement IoT strategies, must consider security as fundamental to the success of an IoT development.

At Teldat, we are at the forefront of technology and always keeping a close eye on new trends in order to develop products and solutions that help both ourselves and our customers meet the demands of digital transformation.

Tags: IoT

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