Internet of Things is here – is your business ready?
Internet of Things promises to be next technology revolution of our times, with scale of impact that matches some recent technology disruptions such as globalization, eCommerce, smart phones enabled operations and cloud technology.
Internet of Things is defined by McKinsey report as “Sensors and actuators connected by networks to computing systems. These systems can monitor or manage the health and actions of connected objects and machines. Connected sensors can also monitor the natural world, people, and animals.” The report suggests that Internet of Things could become a $11 Trillion industry by 2025.
Granted, it is still in nascent stage and there are challenges as well as opportunities for businesses that are deciding to jump on this bandwagon. Like any other technology trend, there would be a maturing process that would take shorter (e-commerce) or longer (cloud based technologies) depending on variety of factors such as incremental business impact, consumer adoption, privacy, legal and regulatory impacts acting as deterrent etc.
Aayuda recommends business owners, CEOs, CIOs, and CTOs to take a more balanced approach in determining whether they should opt for Internet of Things. The balance has to be striken between staying par or ahead of competition (by use of technology as an edge) vs. not getting too invested in less mature technology thereby compromising on ROI. Here is what you should consider if you are faced with this decision for your business:
1. Does technology introduction allow direct and incremental business impact?
Isolating direct and incremental business impact of a new technology could be a challenging task depending on business environment or nature of technology considered. Many industries are begining to use sensors to better manage their business –
for e.g. insurance companies are installing sensors in consumers’ vehicals allowing constant data capture that helps them determine risk profile of the drivers and adjust their premiums accordingly. This opt in/out option for consumers allows them to reduce premiums as well as promotes safer driving practices.
Fitness centric devices such as smart watches are allowing remote data collection that is helping consumers, as well as businesses. Users are able to keep track of their daily fitness activity and measure it against their personal goals as well as compare to others or recommended levels. Likewise, stream of remote data collected is being utilized by researchers to study and test.
Retail businesses are successfully using sensor technology to better understand their consumer behaviour and have product placement, promotions and staffing decisions optimized based on this information.
2. Can technology be integrated seamlessly with existing infrastructure?
It is important to ascertain whether new technology can be integrated efficiently and effictively with existing infrastructure. It is estimated that nearly 60% of value extraction from Internet of Things hinges on ability to integrate it with other IOT as well as IT systems in business environment.
3. Can new technology be introduced with continuous integration model?
With sensors, actuators, devices as well as softwares, there could be different cycles of replacement for each of the “Things” in network. Having a modular enabled technology infrastructure can allow managing IOT better and also provide scalability options for future needs.