What is IoT and its importance to modern business?

IoT is the Internet of things which is a system of co-related computing devices, mechanical and digital machines, objects, animals or people with unique identifiers and the ability to transfer data over a network without human or computer interaction.

The Internet of Things or in short IoT is the Internet of things, which is a system of interrelated computing devices, digital and mechanical machines, animals, objects or people provided with unique identifiers and the ability of transferring data over a network with no need for human-to-human or human-to-computer interaction. A thing, in the IoT could be a person who has a heart monitor implant, an animal in a farm that has a biochip transponder, a car that has built-in sensors to alert a driver when tire pressure is low or any other man-made or natural object that could be assigned an IP address and provided with the capability to transfer data over a network.

The Internet of Things has evolved from converging of wireless technologies, MEMS or known also as micro-electromechanical systems or micro-services as well as the internet. The convergence helped break down the walls between operational technology and information technology, enabling unstructured machine-generated data to be analyzed for insights that drive enhancements.

internet of things

While the concept wasn’t named until the year 1999, the IoT has been in development for decades. The convergence of connecting people, data, things and processes is changing people’s lives, businesses and all other else in between. The Internet of things emerges as the third wave in internet development. It has the potential to connect ten times as many things to the internet by 2020, which range from bracelets to cars. Breakthrough in sensors cost, processing power and bandwidth to connect devices are allowing ubiquitous connections at the moment. Smart products such as smart watches and thermostats are gaining traction already.

Anyone keeping up with the rising trend towards smart devices, entire home security systems and updated car entertainment platforms noticed that it is an age wherein the internet is creeping into everything people use. As a matter of fact, some will argue, that the world is not far from an ‘internet of humans’. With wearable devices and other smart phone technology advances becoming the norm, instead of an exception.

Practical IoT technology applications could be found in numerous modern businesses today. These include building management, precision agriculture, energy, healthcare and transportation. The Internet of Things has key attributes which differentiate it from the regular internet. The attributes could tilt the direction of the development and adoption of technology, with considerable implications for technology companies.

The following significant changes in technology have come together to enable growth of IoT.

  1. Cheap Sensors. The prices of sensors have dropped to an average of 60 cents from $1.30 in the past decade.
  2. Cheap processing. In the same manner, processing costs have declined by almost sixty times over the past decade, allowing more devices to be not just connected, but also smart enough to determine what to do with all the new data generated or received.
  3. Cheap bandwidth. The bandwidth cost has declined precipitously as well, by a factor or almost forty times over the past ten years.
  4. Smartphones. Smart phones now are becoming the personal gateway to the Internet of Things. They serve as a hub or remote control for the connected home, health or car and fitness device consumers are starting to wear them more and more.
  5. Ubiquitous wireless coverage. With WiFi coverage ubiquitous now, wireless connectivity is freely available or at a very low cost, given WiFi uses unlicensed spectrum and so does not need monthly access costs to a carrier.
  6. Big Data. As the Internet of Things would, by definition generation large amounts of unstructured data, Big Data analytics availability is a key enabler.

The IoT would give IT managers plenty to think of. Enterprises would have to address each and every IT discipline to balance the deluge of data effectively from devices which are connected to the corporate network. Additionally, IoT drives tough organizational structure changes in organizations to allow innovation to be transparent to everyone, while making new competitive business products and models.

The Internet of Things is shaping modern businesses, from manufacturing to marketing. A lot has been changed already as the inception of the internet and much more would change the greater web reach and connectivity. The global network that connects people, data and machines which transform the modern business is called Industrial Internet. This has a potential of $10 to $15 billion of worldwide GDP in the next two decades. It is predicted that IoT would experience a large growth in the years to come in a lot of areas.

From business to life, imaginations are limitless. Everything is wired up or wirelessly connected. The rich new information resources would run at one’s fingertip. The next generation mobile system evolution would depend on a user’s creativity when it comes to designing new apps. However, privacy and security would be the top considerations for developing companies that are involved in applications development.

Disruptive Technology You Can’t Ignore

Disruptive technology drives major change in business processes today. It is integral for a business to identify the disruptive technologies that could impact their businesses as well as their customers.

Disruptive technology is driving major change in business processes, streams in revenue, consumer spending or behavior, or Information Technology industry dynamics. Green IT, virtualization unified communications, social networks and cloud computing are among the disruptive technologies that are reshaping the business and IT landscape. It is important for organizations to identify these disruptive technologies that could impact their businesses and users and to develop plans of addressing them.

In recent years, payments have become more card-based, with debit, credit and pre-loaded cards that replace cash and checks for a lot of purchases. Today, electronic payments are gaining a rapid market share than cash and checks. Consumers use the new tools and technologies to dynamically move between computer, mobile device, as well as in-store experiences while shopping. The rise of DevOps, carbon-reducing technologies, Virtualization 2.0, the IT-marketing alignment evolution and sharpening of the focus of IT on the customer experience are all going to affect how a business is done.

Disruptive Technology

The following are some of the disruptive technologies that a business could simply not ignore.

  1. DevOps. As Information Technology retools to be more responsive to change business requirements fast, approaches such as DevOps are gaining solid footing as they are considered as ways of supporting agile IT service delivery. Considered more as shift in culture than a full-blown development method, DevOps puts great emphasis on the level of collaboration earlier on in the process between development and operations teams. This is aided by an automation tools set. Enterprise information technology, under constant pressure to accelerate systems delivery, is quickly adopting the philosophy. There is continuous rise in DevOps as IT companies find ways to boost time to produce, improve business value and save money. In the DevOps agile development style, new apps are developed in a fast-fail manner. A sign that the system is maturing is the automation expansion in areas such as testing and monitoring. A successful DevOps strategy has less to do with technology than it does with people. Culture and people are always a challenge since people need to work together in ways that they did not before.
  2. Carbon-minimizing technologies. Businesses pay more attention to the environmental footprints, and that is prompting a flurry of spending on technologies that are energy-saving. In a forecast survey, 16 percent of respondents indicated that techs that are energy-saving and carbon-minimizing will be a new area of spending for them this year. In a data center, companies invest in new cooling technologies, virtualization and power management capacities, among others to help lower energy consumption. All servers will be virtual, thus, taking up a very small footprint and making people very energy-efficient.
  3. Virtualization 2.0. Recognizing that virtualization could minimize costs and wring more performance out of a desktop, information technology now is eager to embrace a next-generation virtualization tech, which provides the same benefits for other kinds of systems, not desktop computing alone. Tech professionals surveyed said they expect to see more money budget for virtualization projects in the next 12 months. Thirty-five percent of those polled stated that they were increasing spending on virtualization efforts. As alternative to full-blown virtualization, some companies are beginning to ‘containerize’ the server, cloud apps and data center. The reason for this is all about speed and agility.
  4. IT-marketing alignment. In the digital business age, technology has become an integral asset in helping organizations engage with prospects and customers. As a result, Information Technology and marketing departments collaborate and forge partnerships that would have once seemed not likely. Everything from automation of marketing to email campaign management and analytics, is a main new area of interest for survey respondents. Coordination between IT and marketing is essential given the role that technology plays nowadays throughout the customer life cycle. Digital transformation is impacting every facet of a business, including how a business touches customers, how to find them and engage them. All this could not be executed with no effective technology in plan, which is why there’s a lot of energy in the partnerships.
  5. Focus on customer experience. As businesses consider deploying systems that simplify interaction as well as foster engagement, the customer experience has become an IT priority. Certainly, it is a higher priority for those survey respondents this year than it was last year. Consumers would spend more money with brands that could deliver an experience above their expectations. Organizations that provide a better customer experience have more clientele who state that they are willing to purchase from the business again. The willingness to purchase more from companies that offer a better experience has also a direct correlation to retention of customer.