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5 Ways IoT Is Reinventing Businesses Today

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The Internet of Things (IoT) means more than simply establishing connections between devices and systems—it is opening up opportunities for creating new products and services not previously thought possible. In fact, according to a recent Forbes Insights survey of 700 executives, 60% of enterprises are, with the help of their IoT initiatives, expanding or transforming with new lines of business, while 36% are considering potential new business directions. In addition, 63% are already delivering new or updated services directly to customers thanks to their IoT capabilities.

Leveraging IoT has evolved from a connectivity strategy to a business transformation strategy, and has proven results, including increased profitability. More than seven in 10 executives credit IoT with delivering increased revenue. Currently, 45% report IoT has helped boost profits by 1% to 5%, and another 41% say the impact has boosted them by 5% to 15% annually. Over the coming year, nearly all, 94%, anticipate a profit boost of at least 5% to 15% as a result of IoT.

But the benefits of IoT go deeper than profit and revenue growth. Below are five other ways IoT is positively impacting businesses today.

  1. More Data, More Opportunity: Business areas that have seen new ventures or expansion include preventive maintenance, automatic product upgrades or updates, and the tracking and tracing of assets, the Forbes Insights survey finds. Sensors located in production systems, assembly lines, warehouses and vehicles produce data that helps managers understand how operations are flowing, and those built into products monitor, and improve, product performance. As large volumes of data flow in from data centers, production systems, sensors and IoT systems, this real-time, or near-real-time, information helps companies gain increased insight into the productivity and performance of their systems and processes, offering opportunities for innovation and growth.
  2. New Ways to Understand the Customer: IoT is also paving the way for opportunities to employ computer vision—via cameras and other visual sensors—to gain greater insight into customer behavior and requirements, as well as critical aspects of a company’s operations. Close to half of executives in the Forbes Insights survey, 47%, report they have implemented visual analytics across parts of their enterprises, capturing information on people, objects and situations. For example, with on-floor cameras tied to artificial intelligence or analytic systems, retailers may be better able to understand and anticipate customer reactions to sales floor promotions.
  3. Creating New Business Lines: The Forbes Insights survey also finds IoT is translating to new business lines. As mentioned above, a majority of executives report that IoT is creating new business opportunities. For example, companies now have opportunities to not only manufacture products but also to offer ongoing services to monitor the performance of these products, all thanks to algorithms that provide predictive maintenance as required. This IoT data can also be shared across an organization’s ecosystem of partners and customers, providing new paths to innovation in the form of new value-added services and continuous engagement. Close to half of executives in the survey, 48%, say IoT has enabled them to extend their efforts to a platform model for greater partner engagement.

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Article Credit: Forbes

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