Understanding the Impact of Internet of Things on Business with Gartner’s Analysis
As the world becomes increasingly digitalized, the Internet of Things (IoT) is becoming one of the most significant technology trends. IoT refers to the network of devices, objects, and technologies connected via the internet, exchanging data, and making decisions without human intervention.
It’s no secret that IoT is catalyzing many changes in the business world. According to Gartner, the IoT market is set to expand aggressively, with the number of connected devices expected to reach 25 billion by 2021. This article analyzes Gartner’s findings and explores the ways in which IoT is transforming the business landscape.
I. IoT in Business Operations
One of the main areas where IoT is affecting businesses is in their operations and supply chain management. IoT technology allows businesses to closely monitor their goods and services in real-time. This capability not only enhances efficiency but also enables a quick response to issues such as stock shortages or equipment failures.
For example, General Electric uses IoT sensors to monitor turbines in power plants and analyze data to predict when maintenance is necessary. This enables GE to schedule maintenance during planned downtimes, reducing the risk of unscheduled shutdowns and saving millions of dollars in repair costs.
II. IoT and the Customer Experience
Another area where IoT is impacting businesses is in the way they deliver customer experiences. With IoT-enabled devices, businesses can improve personalization, convenience, and efficiency.
A good example of this is the Amazon Dash Button, allowing customers to order products with a single press. Sensors within the gadget detect when the item is about to run out and automatically place new orders. This makes the shopping experience smoother and more convenient, resulting in higher customer satisfaction and sales.
III. IoT and Data Analytics
IoT is providing businesses with an unprecedented volume of data. And, with the help of advanced analytics tools, this data is turning into valuable insights, driving innovation and revenue growth.
For example, Vancouver-based start-up Neurio uses IoT technology to provide real-time power consumption analysis to households. The data gathered enables Neurio to offer tailored recommendations and insights to customers on energy-saving habits, creating value for both the customers and the company.
IV. Security Risks of IoT in Business
Despite the potential benefits, IoT also brings significant security risks to businesses. The increasing number of interconnected devices creates a greater attack surface for hackers and cybercriminals. As a result, businesses must be vigilant and implement robust security protocols and policies.
In 2018, a casino’s IoT-enabled fish tank was hacked, resulting in the theft of high-roller data. The hackers targeted the thermostat of the tank, then used it to infiltrate the casino’s network. This serves as a reminder that even seemingly harmless IoT devices can pose a significant security threat.
V. Conclusion
IoT is revolutionizing the way businesses operate, enhancing customer experiences, and enabling data insights that were previously impossible. However, it also presents new risks to businesses. While the benefits are significant, a careful approach is required to ensure that organizations can tap into the power of IoT without inadvertently introducing security weaknesses. As IoT technology continues to evolve, businesses will need to keep pace with the latest developments and remain alert to emerging threats.
