IoT technology is quickly becoming an essential part of building smarter buildings, which offer improved energy efficiency, convenience, security and plenty of automation. This emerging technology is here to stay and presents opportunities for smart cities, communication service providers, and enterprises. But how is IoT changing things for the better and what should business leaders be concerned about?
According to survey by Capgemini, 96% of business leaders said they will invest in IoT in the next three years.
When considering how to incorporate IoT technology into your own business, consider the following advantages and disadvantages:
1. Data: Data has reigned king for several years now and as IoT comes to dominate every aspect of our lives, data will become ever more powerful. By 2020, it is predicted every person will create about 1.7 megabytes of new information every second. Much of this data will go unanalyzed and left to waste.
To bank on the data explosion, businesses need to consider how to aggregate, anonymize and sell data and the insights incurred to create new devices, applications or services. Nest, for example, uses the data collected from its Learning Thermostat to consult energy companies on utilities management.
2. Tracking/Monitoring: Leading-edge IoT solutions are key to the evolution of network-based connected device management and make monitoring devices easier which enable success of connected car ecosystems, smart homes, health and living, smart cities, meters, utilities by being able to maintain device quality and security.
3. Revenue: The limitless opportunity to monetize IoT comes not solely from developing specific applications or devices; rather it comes from innovating off-shoot applications, devices and services. These add on developments aim to support or enhance the initial product, and can spur new or additional revenue streams.
1. Compatibility: To make the most of IoT technology adoption among businesses, leaders have to consider how best to incorporate emerging IoT architecture with existing IT framework. First, they must decide which business processes would benefit most from the addition of IoT technology and assemble the needed infrastructure to start applying IoT technology to those areas, ensuring that data collection is secure, efficient and helpful.
2. Complexity: With so many platforms available, businesses face a challenge when attempting to choose the right one. Open source software, turnkey Internet of Things platforms and cloud solutions from major providers are all in the mix, and each system has its pros and cons. Leaders need to take into consideration each platform and analyze if one will ultimately enrich or hurt their business model(s).
3. Security/Safety: By 2020, there will be 50 billion “things” connected to the Internet, representing profits and cost savings of $19 trillion. However, IoT technology also presents new security vulnerabilities for computer hackers to exploit. Possible security issues that come with enhancements in the Internet of Things include manipulation of vital data, for example, remote patient monitoring IoT applications or smart car automated driver functions, hijacking of user accounts, phishing attacks, malware issues, and cyber ransom.
Ultimately, IoT technology will offer more value to consumers and achieve new efficiency and business growth for companies. However, before any value is created, business leaders need to address major compatibility, complexity, and security challenges that such growth will come with.
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To start capitalizing on the growing market of IoT, businesses will need to be prepared to develop and deploy new products and services quickly.