Ask Approyo - What is the Internet of Things (IoT)?
Over the last several months, we have published numerous blogs and articles around the topic of the Internet of Things (IoT). These articles have talked about the business value it can bring to your organization and how it can impact your daily business life. Now let's look at the basics of IoT and why it is important to your business....
What is the Internet of Things (IoT)? Internet of Things definition according to SAP: The vast network of devices connected to the Internet, including smart phones and tablets and almost anything with a sensor on it – cars, machines in production plants, jet engines, oil drills, wearable devices, and more. These “things” collect and exchange data.
IoT – and the machine-to-machine technology behind it – are bringing a kind of “super visibility” to nearly every industry. Imagine utilities that can predict and prevent service outages, airlines that can remotely monitor and optimize plane performance, and healthcare organizations that can base treatment on real-time genome analysis. The business possibilities are endless.
How does it work? Devices and objects with built in sensors are connected to an Internet of Things platform, which integrates data from the different devices and applies analytics to share the most valuable information with applications built to address specific needs.
These powerful IoT platforms can pinpoint exactly what information is useful and what can safely be ignored. This information can be used to detect patterns, make recommendations, and detect possible problems before they occur.
For example, if I own a car manufacturing business, I might want to know which optional components (leather seats or alloy wheels, for example) are the most popular. Using Internet of Things technology, I can:
Use sensors to detect which areas in a showroom are the most popular, and where customers linger longest;
Drill down into the available sales data to identify which components are selling fastest;
Automatically align sales data with supply, so that popular items don’t go out of stock.
The information picked up by connected devices enables me to make smart decisions about which components to stock up on, based on real-time information, which helps me save time and money.
With the insight provided by advanced analytics comes the power to make processes more efficient. Smart objects and systems mean you can automate certain tasks, particularly when these are repetitive, mundane, time-consuming or even dangerous. Let’s look at some examples to see what this looks like in real life.
New realities strengthen the value of IoT The IoT is very quickly extending beyond the tried-and-true task of automation and monitoring. Rather, the value shift is moving toward predictive and remote access. In turn, this approach is enabling people to make real-time changes anytime, anywhere, and on any device and impact the business positively.
However, this is only the beginning. In fact, there are three key reasons why every company should consider integrating the IoT into their operations, interactions, and overall digital strategy.
Development: As companies continue to collect more data from a variety of sources, the IT function is left with the hefty task of integrating devices, data sources, and application across the entire value chain. The real art and science behind this task lies in how hyper connectivity allows this information to be distributed across the business network to avoid data silos.
Business models: Consumers expect products to add value to their lives – whether in the form of convenience, reliability, privacy, or efficiency. This increasingly popular demand across all B2B and B2C markets are forcing companies to shift away from the traditional approach of producing, selling, and delivering a tangible product.
Consumer behavior: Security, privacy, convenience, and stickiness of service. These are the highly sought-after attributes of the customer experience. People are becoming more aware that data is captured, access, and analyzed throughout the buyer journey. With the help of advanced analytics, decision makers can dig deep into this data and gain insight never thought possible.
On the flip side, the traditional market will need to rethink how it treats consumers along the way – choosing concessions to drive additional value.
Embrace new technology today Approyo can help your company deal with the changing world. Our SAP S/4HANA and Big Data solutions can help your business today and in the future. Let us show you today! Set up a free consultation.