Impact of IoT in Business

Published by MBA Skool Team, Published on March 20, 2018

Internet of Things i.e. IoT is one of the most recent jargon which going viral almost in all the industries and it is expected to set a new standard in a new era of technology because of its high productive potential. With the growth in technology, IoT is becoming an important stream of science and business.

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What is IoT/Internet of Things?

Before moving further let us understand what IoT really mean.

IoT is made up of two words that are Internet and Things.

So what is Internet? It is nothing but a network or we can say a network of networks. What are things? Things can be different objects. So, IoT can be defined or referred as to a network of connected objects which can share information among themselves. These objects can have systems such as sensors, mobile devices, software, and hardware, etc. Its application is not limited to a particular a industry rather than it is spread over multiple industries like media, manufacturing, medical and healthcare, transportation, automation etc.

Why IoT?

There are several ways in which IoT can lead to a transformational change.

• Because of urbanization

• Because increasing energy consumption.

• Because of speed.

• Because of the digital era.

• Because of efficent productivity.

• Because of cross selling from a business perspective.

• Because Increased Focused on one's customer.

• Because of a better understanding of the requirements.

• Because cost saving in terms of marketing and many more.

IoT in Business

The success of any company depends on the satisfaction of customers apart from ROI. Companies are continuously competing with each other and every time they try to bring in new innovation. But presence IoT changes the scenario completely. Nowadays companies are responding to their customer directly. It enables them to do surveys and identify problems and needs of their customer.

How IoT can change business and retail market

1. Consumer engagement

Nowadays every company are bringing new innovative smarter products to satisfy the consumers like the digital sign,self-checkout with smartphones, loyalty programs for subscribers and many more. with the help of IoT, companies are analysing consumers behaviour and marketing their products to their target customers.

2. It's all about data

Objects which are compatible with IoT uses various sensors to collect data and stored in the cloud. It is further analysed in the decision-making process. companies use these data in many ways like to understand shopping pattern of the customer, to reduce waiting time in attending customers request and many. So the companies which can handle these data properly and make use of it to increase customer experience and satisfy their employee is going to be the winner in this IoT technology.

3.Old jobs will disappear and new opportunities will be born

IoT is becoming the synonym to digitization and automation.

Traditional jobs may get replaced with new jobs. people who are working in industries like retail, banking, agriculture, e-commerce and manufacturing may face some problem if they refused to adapt with technology because it is going to create new jobs like using tools, problem-solving skill, creativity and many more.

What are the challenges?

Since IoT means network of connected objects therefore:

• There is always the possibility that network can be down.

• There is always the possibility that network can be hacked.

• There is always possibility users data can be compromised.

• There is always the possibility that system does not respond in required time.

• These are some serious concerns which need to be addressed.

The major impact of IoT is going to be on business and retail industry. Main objectives of any company to improve customer experience and increase revenue. But companies have to keep in mind investment in IoT might not give the immediate return but this technology is revolutionizing every industry. so return might be late but will be huge.

This article has been authored by Ranjan Tiwari


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