Advantages and Disadvantages of IOT in Business
IoT or the Internet of things is everywhere. We are surrounded by it and immersed in it. A stream of interconnected and interrelated devices, digital machines, objects, and appliances surround our lives today. IoT has enabled us to remove the dependency on human-to-human & human-to-computer interactions. With machines communicating with themselves over assigned Internet Protocol, IoT is the crowning achievement of the Emergent Age. And businesses are no exceptions. IoT in business is growing at an exponential rate and is expected to surpass $2.4 trillion annually by 2027, with over 41 billion connected devices.
IoT at a glance
Imagine a world where you can relieve yourself of all trivial tasks. From waking up in the morning to receiving weather reports, IoT can help you switch on the lights, monitor your vitals, and whatnot. Then why not let IoT do some of your work? This is indeed in action, as many businesses are leveraging IoT to rid themselves of trivial tasks so that they can focus on what matters to them the most. But like every great boon or discovery, IoT is a double-edged sword. While IoT in business can lead to reduced operating costs, new consumer insights, identify business growth opportunities, and streamline workflows, IoT at the same time can lead to compromising data privacy & security, technical complexities, unemployment, and a mechanical lifestyle dependent on machines and things.
So, where do we lie in this spectrum? Do the positives outrank the negatives or are we to become the slave of technology that we created to master? Honestly, it is not as dire as one would seem to think! Responsible usage, limited screen time, and a balanced approach are what we need to consider. Caution is advised but so is the ability to adapt. The road to a successful technology is always under construction and IoT exemplify it.
IoT in Business
Internet of Things or IoT is an ecosystem for smart appliances, devices, machines interconnected over Internet. As per Statista, by 2025, we are expected to have 21.5 billion units connected via IoT. As of 2022, the global IoT security market has grown to $5.09 billion, a compound annual growth rate (CAGR) of 31.7%. The pandemic has driven industries to transform like never before, which has increased the demand for IoT solutions.
IoT in business is characterized by two main features:
1. Automation: IoT enables direct communication between devices without any human interference.
2. Connectivity: Globally connected networks allow easy access to a wide range of information.
IoT also leverages numerous other technologies like AI, Big Data, Machine Learning for data transfer, analysis, and response among multiple devices. Because of its massive growth, IoT has been integrated to businesses and workflows mainly for seamless automation and curated connectivity.
Let’s take a quick look at the Advantages of IoT.
Advantages of IoT in Business:
- Reducing human intervention: As IoT devices act and communicate with one another, they modify tasks, enhancing the standard of a business’s services and reducing the necessity for human intervention.
- Cloud Computing & Data Collection: Because the data is stored over a server accessible to all, cloud-storage enables every user with instant access to data in real-time.
- Smart Devices: If we have a networked system, we can use mobile devices to govern our homes and cities more intelligently.
- Effective resource management: By understanding the features and operation of each gadget, we can improve resource management and keep an eye on natural resources.
- Lessening of the usage of other electronic devices: Since electric gadgets can interact with any electronic device with designated IP such as a mobile phone, they may be directly connected and consume less power. There won’t be any pointless usage of electrical equipment as a result.
- Use in traffic systems: IoT is extremely useful in tracking and monitoring. Because the devices constantly ingest data from all sources, right from tracking to monitoring to reporting and surveillance, IoT is perfect.
- Useful for safety concerns: It is helpful for safety concerns since it recognizes any potential risk and warns individuals. A road accident or crash can be detected by an implanted device, such GM OnStar. An accident or collision is immediately reported to the authorities.
- Advantageous for the healthcare industry: Real-time patient care can be provided more successfully without a system that allows for choice-making.
- Lowered Operational Costs: Because it reduces operational time, it also reduces operational resources, and hence, the overall cost.
- Better Customer experience: By leveraging detailed insights, you can personalize the services catering to each individual and hence increased customer satisfaction.
- Increased Productivity: Because IoT provides seamless automation and reduces manual dependency, businesses can increase their productivity with enhanced quality.
- More business Insights: IoT as they are interconnected can cross reference across countless datapoints to drive conclusions within minutes which cannot be achieved manually with the precision of IoT.
Disadvantages of IoT in Business:
Because the technology is still emerging, there are numerous aspects that can be improved upon.
- Security and Privacy: As everything is internet based, data are prone to hacking. If not hacking, it is the malfunction of any device that can slow things down. Remember the massive Solar Flare event that wiped out the communication channels. Such threats will be more prominent if we migrate completely to a device-based lifestyle. Because integrating encryption are difficult to implement for a large fleet of devices, apart from device tampering, IoT can stall business processes with the slightest glitch.
- Technical intricacies and complexities: IoT devices involve a lot of complex technology, and the errors are not always easy to locate & fix. It also requires extensive upskilling of resources.
- Power dependency: As internet of things are device dependent, it requires continuous source of power. Any power failure or discrepancy will lead to a major halt in the functioning of these devices.
- Increased Unemployment: Because it reduces manual dependency, machines & devices are replacing manual effort and hence can remove human dependency altogether.
- Internet connectivity: As the name suggests, IoT is heavily dependent on Internet and requires good, consistent, and stable internet connectivity.
- Lack of Standardization: Because businesses and enterprises can independently implement IoT there is a lack of regulation and standardization.
IoT can be a boon or a bane dependent on various factors. IoT requires considerate usage, proper implementation, regulated guidance, and above all, an ethical approach. If all of these are maintained, then IoT in business can work wonders.
Follow this space to keep up with all the latest marketing technologies and innovations.