The Internet of Things, or IoT, is growing at a rapid pace in the United States, with literally millions of new devices going online every month. In five years, there will be more than six billion IoT connections in our country. The IoT has become one of the driving forces of growth, efficiency, and cost savings for millions of businesses in a wide variety of industries. In a survey conducted by the Harvard Business Review, 6 in 10 small business owners said the IoT helped increase employee productivity and collaboration, and 44% said it helped reduce energy costs.
Although corporations and middle-market companies make up the biggest pieces of the “IoT” pie, small businesses are making inroads. However, many small business owners do not fully understand what the IoT is. So, Balboa Capital created a blog post that features a simple explanation of the IOT, and how it benefits small businesses.
What is the IoT?
Right now, you are reading this Balboa Capital blog post from either a computer, tablet or smartphone. If you did not have an Internet connection, this would not be possible. The Internet is a technological marvel that lets you buy products, watch movies, turn alarms on and off, read books, listen to music, and so much more, anytime, anywhere. This brings us to the concept of the IoT, which is fairly simple and straightforward.
The IoT is the idea of connecting any device or machine, such as a smartphone, smart device, alarm system, smart car, or airplane engine, to the Internet over a closed network. With IoT, devices that are equipped with special applications and data-collecting technologies are able to communicate with one another. For example, your company’s information technology (IT) department can use the IoT to gather information about hardware, software, and cloud-based security systems. Or, your office manager could use IoT to find out when office supplies are running low, and order more automatically.
Types of IoT solutions.
Depending on what you have read or heard, the IoT might seem overwhelmingly complex. Truth be told, it is. The IoT is a large and multifaceted collection of tools and technologies that collect information and create algorithm-based solutions. As a small business owner, you do not need to know how the IoT architecture is set up, or learn how hardware, software and firmware communicate together. You just need to identify areas of your business that could use some improvement, and look at the IoT solutions that are available. Industry-specific packages, lower price points, and easier implementation processes are making IoT more accessible to SMBs than ever before.
Small businesses nationwide are deploying IoT tools such as smart locks, smart thermostats, voice assistants, chat box technology, smartphone shopping, RFID inventory tags, data-driven pricing solutions, and shipping trackers. For equipment vendors and supply chain businesses, among others in the B2B sector, the IoT can help fulfill orders in a timely manner, provide real-time analytics of inventory, and improve the customer experience. The IoT is also transforming the healthcare industry. Physicians are using the IoT to monitor their patients’ health on a continuous basis, and to gather real-time data that can help diagnose health concerns at their earliest stages.
Example of the IoT in action.
The manufacturing of products, equipment and goods is important to consumers, businesses, and our nation’s economy. Manufacturing is one of the biggest and most competitive industries, and it adapts to new technologies when they become available. Here is an example of how one manufacturing company is using the IoT to take its business to the next level. The company was dealing with a big problem that was affecting its bottom line, and its reputation. It had machinery that would periodically malfunction without warning, thereby causing production to come to a halt.
Therefore, the company’s management team invested in an IoT solution that uses sensors and analytics to forecast when its machines will reach their peak and need maintenance. Since deploying its IoT solution, the company has its equipment checked and serviced long before potential problems can occur. This helps reduce downtime and boost productivity. Moreover, it helps prolong the lifespan of the manufacturing equipment.
Where to begin.
Before investing in the IoT, you should determine how it might benefit your small business from an operational and financial perspective. How will it be implemented, and at what cost? Will it improve your company’s current processes? Will it save money? Will it drive revenue? Will your employees embrace it, and will they use the data that it provides?
No two small businesses use the IoT in the same way, so do not go with a “one-size-fits-all” approach. Consulting with your IT manager, or an IoT solution provider, will help you tackle the challenge of determining where to begin.
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