Internet of Things (IoT)

Internet of Things (IoT) refers to a network of internet-connected devices and sensors that collect, communicate, and exchange data with each other via the cloud. With the increasing adoption of technologies such as cloud computing, artificial intelligence, and analytics, a variety of market sectors have started to adopt and innovate IoT solutions to meet the rising demand for smart devices, task optimization, automation, and monitoring.

IoT solutions can save about 22% of costs after 3 years

IoT devices are becoming more and more common; there are currently over 13 billion IoT devices worldwide, with roughly 29% of all companies in both North America and the EU utilizing IoT solutions [2]. Furthermore, from a cost reduction perspective, most IoT projects save their organization’s an average of 9% of their yearly costs, with future savings expected to increase to 15%-22% within 1–3 years [3]. While the IoT market does face concerns with security and privacy, companies continuously develop new standards and software to ensure IoT devices remain secure.

Most IoT systems rely on four main components: Devices/ Sensors, Connectivity, Data Processing, and User Interface. Devices/ Sensors are the physical objects that collect data from their surroundings such as temperature, light, motion, etc. Connectivity refers to the network used to enable communication between the various devices such as Wi-Fi, Bluetooth, or cellular. The Data Processing layer is the cloud/ compute layer that receives, stores, and analyzes the data from the devices. Many different machine learning, artificial intelligence, and analytic tools are utilized for these operations. Finally, the User Interface (typically an application, website, or dashboard) allows the user to interact with the IoT system by controlling the devices and/ or displaying the data and insights from the Data Processing layer.

Key Benefits:

IoT consists of many different types of devices and sensors each with its own unique purpose, as such, the benefits of IoT are highly tailored to the implemented solution. Some of the most common benefits of IoT include: Automation & Efficiency, Remote Monitoring & Control, Reduced Operational Costs, Enhanced Customer Experience, and Improved Decision Making.

Automation & Efficiency: IoT can help automate and optimize various processes, such as production, inventory, maintenance, etc. by monitoring and tracking a wide range of metrics. This can reduce human error, eliminate the need for certain resources, save time, and improve quality and performance.

Remote Monitoring & Control: With the help of IoT, systems and devices can be monitored and/ or controlled over the internet from anywhere, at any anytime. This also enables real-time data collection and analysis, active and preventive maintenance, remote troubleshooting, and more.

Reduced Operational Costs: IoT can help reduce operational costs by enabling better asset management, optimized resource allocation and utilization, process optimization, and predictive maintenance. IoT devices can monitor the condition and performance of assets, such as machines, vehicles, equipment, etc., and alert operators or technicians of any issues or failures before they become costly. IoT devices can also improve the utilization of resources, such as energy, materials, etc., by adjusting consumption and output according to the supply and demand. Furthermore, predictive maintenance allows for advanced scheduling to eliminate any unnecessary downtime.

Enhanced Customer Experience: By collecting and analyzing user data, IoT can help businesses provide their customers with a better experience, such as personalized recommendations, smart features, feedback mechanisms, etc. This can increase customer satisfaction, loyalty, and retention.

Improved Decision Making: IoT devices generate large amounts of data; from an operational perspective this provides insights into equipment functionality, efficiency, etc., and from a customer perspective, identifies trends and patterns. In both cases, analyzing this data can provide valuable insights allowing businesses to make better, more informed decisions about everything from resource allocation, to budgeting, to marketing.

Market Outlook:

The IoT market is currently considered one of the fastest-growing markets in the world, with a projected compound annual growth rate (CAGR) of 26.4% from 2022 to 2029. In 2021, the global IoT market was valued at $384.7 billion and is expected to reach $2.4 trillion by 2029 [4]. Additionally, IoT devices are projected to generate over 90 zettabytes of data by 2025 (more than 50% of all data worldwide) [1].

While the IoT market has traditionally been dominated by the manufacturing and healthcare sectors, in the last few years many other market segments such as government, utilities, and retail have started adopting IoT with remarkable results. For example, governments are building “Smart Cities” automating everything from traffic lights and cameras to energy management, whereas retailers such as Apple and Google have started producing wearable devices to track health, fitness, and more. As the variety and quantity of IoT devices continues to increase, companies are creating more innovative solutions to benefit from IoT’s vast capabilities.

BwB Advisors' Methodology for Adopting New Technologies:

The business world and the technological world must evolve parallel to each other. No matter your organization’s industry, implementing new technology in an organization is vital for staying competitive in the dynamic markets of today. Nevertheless organizations should proceed cautiously in deciding which technologies are needed and how to implement them — one size does not fit all.

At the BwB Advisors, our Technology Adoption Methodology (TAM) follows a 6 phase process and provides a complete roadmap from identifying an advantageous technology all the way through its deployment so that your organization can ensure success.

To learn more about us and our Technology Adoption Methodology click here.

April 2023   /   Insights   /   By: Michael T. Casarona

References:

[1] Data Growth Statistics: Growth rates over time. Data Growth Statistics: Growth Rates Over Time. (n.d.). Retrieved January 29, 2023, from https://www.aparavi.com/resources-blog/data-growth-statistics-blow-your-mind

[2] Vailshery, L. S. (n.d.). Topic: Internet of things (IOT) in the U.S. Statista. Retrieved March 6, 2023, from https://www.statista.com/topics/5236/internet-of-things-iot-in-the-us/#topicHeader__wrapper

[3] Onag, G. (2021, October 15). Firms plan an average US$2M on IOT projects through 2024. FutureIoT. Retrieved March 6, 2023, from https://futureiot.tech/firms-plan-an-average-us2m-on-iot-projects-through-2024/

[4] Internet of things [IOT] market size, share & trends, 2029. Internet of Things [IoT] Market Size, Share & Trends, 2029. (n.d.). Retrieved March 6, 2023, from https://www.fortunebusinessinsights.com/industry-reports/internet-of-things-iot-market-100307