We are rapidly moving into an era where everybody and everything will be interconnected through embedded tags and sensors. IoT is expected to grow to a six trillion dollar industry by 2025. Businesses are integrating their solutions in IoT: Google paid a whopping 3.25 billion dollars for a smart thermostat company named Nest. A fundamentally new approach that will empower your business processes with a wealth of deep business insights delivered with zero latency periods.
Business opportunities arising out of IoT
IoT will provide far ranging benefits for you regardless of the organization’s size or your business volume. One such benefit is supply chain visibility. RFID tags will improve visibility of your goods (even in remote areas) which will help you in forecasting supply chain disruptions almost immediately.
Customer service is another avenue which is expected to change once you adopt IoT. For example, utility companies can improve customer loyalty by providing real time information of outages. Similarly, IoT will also help the customer to control their appliances from a remote location.
Challenges arising out of IoT
The biggest challenge is the quantum of data involved. Interconnected sensors will mine a treasure trove of data for businesses to analyse. Sending data over the Internet can be really costly therefore you must shift to in-memory computing to analyse data at the point of contact (sensors) itself.
Security is going to be a big buzzword as businesses move to IoT. Since customer data will be involved, businesses will have to invest in best in-class security systems to keep information safe.
Coming to SMAC stack, with the rapid growth of smart devices connected to the internet, businesses are slowly moving to new business models, which are centred on customer generated data.
Social, Mobility, Analytics, Cloud (SMAC) is the fifth wave after the highly successful fourth wave of computing, i.e., commercialization of internet services. By 2020, more than 100 Billion devices will be connected to the net, generating humongous data sets: user generated logging behaviour, browsing habits, loyalty program endorsements, etc. The key to greater customer engagement in this web 3.0 environment is making sense of these structured and unstructured data sets with the help of analytics.
Social drives customer engagement, while mobility- always on, always connected; helps businesses to stay in touch with their customers, wherever they are located. Analytics helps businesses to provide highly personalized solutions to customers whereas cloud provides businesses with quick access to data from any location.
Taken individually, each provides immense value to the business, but the real benefit to businesses comes from leveraging social, mobility, analytics, and cloud as a single stack of interacting platforms in an increasingly virtualized and globalized business environment.
SMAC provides great business value when used together with gamification. Gamification provides critical customer information required for generating optimum customer responses needed for achieving business objectives.
A three pronged circular strategy consisting goals, rules, feedback from the system will help you achieve business objectives. A successful gamification strategy will depend on a robust SMAC stack implementation strategy.
- Reduced operating costs
- Enhanced productivity
- New market penetration
- Data Security
- Higher initial investment
- Continuous modifications and maintenance
Implementing an IoT project comes with its own opportunities and challenges. IoT will provide far ranging benefits for businesses irrespective of their size or business volume.
The biggest challenge is the quantum of data involved. Interconnected sensors will mine data for businesses to analyze. Since customer data will be involved, businesses will have to invest in best in-class security systems to keep information safe.
- Connected home appliances
- Google glass
- Smart thermostats
- Mobile keyless entry
- Digital heart rate sensors
- Wearable fitness tracker
- Car play
- Farm lands