IoT is a network of billions of devices that connect and share data over the internet. It has helped businesses to improve customer experience and increase revenue. Read on to know more about IoT and digital transformation!
Digital transformation has been playing a vital role in the transformation and growth of several businesses around the globe. As per a survey, around 70% of organizations already have a digital transformation strategy in place or are currently working on one. Such a strategy will help businesses to achieve their goals, which may include overall revenue growth or increased employee productivity. But how can these goals be achieved? A simple answer to this question is by embracing new technologies such as the Internet of Things (IoT).
But first, what is digital transformation all about?
Digital transformation aims to increase the use of technology for improving the experience of customers, employees, and other stakeholders. It also helps businesses to create new business models, rethink their leadership style, and create products that have a competitive edge.
For instance, if you are new to a business, you can take advantage of digital transformation by using the best hybrid mobile app framework, which will help in cost-saving and provide a single code base with which you can develop each app for multiple platforms.
Now let’s discuss the main advantages of digital transformation:
Improves customer experience: Offering digital and advanced tools to the customers helps to make their lives easier and comfortable. It makes the business more attractive to potential customers. Businesses that offer outdated tools and technologies will have trouble competing with those who use new and updated modern technologies.
Enables data-driven decision-making: Digital transformation empowers businesses to implement truly data-driven management by using a variety of tools for tracking metrics and analyzing data. This, in turn, helps to deliver better results.
Improved efficiency: Innovative software tools for automating processes lead to improved efficiency, which in turn, results in cost savings and reduces friction in the business.
Greater security: By switching to modern software systems, companies can better protect their data. Today, consumers are well aware of data security issues than ever, so this is the most effective strategy to win their trust and loyalty.
What is IoT and how is it accelerating digital transformation?
The Internet of Things or IoT refers to the billions of physical devices around the world that are now connected to the internet, all collecting and sharing data. Tech analyst IDC predicts there will be 55.7 billion connected IoT devices by 2025. IDC estimates data generated from connected IoT devices to be 73.1 ZB by 2025, growing from 18.3 ZB in 2019.
Worldwide spending on the IoT was forecast to reach $745 billion in 2019, an increase of 15.4% over the $646 billion spent in 2018, according to IDC, and pass the $1 trillion mark in 2022.
Example of an IoT device
For instance, a lightbulb that can be switched using a smartphone app is an IoT device. An IoT device can be as small as a child’s toy or as serious as a driverless car. If you want to develop an IoT-based app for your business, first read the mobile application design guidelines so that you don’t commit any mistakes and build a successful app.
With increasing markets and consumers’ demands day after day, the best way to future-proof a business is digital transformation. The IoT can help build a foundation for this digital transformation and be a perfect tool to adopt the new technologies and keep up with the world.
Here are a few ways in which IoT data is driving digital transformation:
1. New business opportunities: With the help of data generated by IoT devices, businesses can interpret their customer needs and offer products on that basis. Further, IoT data provides easier product personalization, which leads to improved conversion.
2. Improves monitoring: With IoT, sensors and smart devices provide the capability to manage a network of physical objects. The data collected from an onsite monitor could be enhanced with data about hardware version, firmware version, and location.
3. Increases customer satisfaction: IoT helps to increase dialog with customers and leads to higher client satisfaction. It also gives you an estimate of what you might expect to pay over the next couple of months. Use that information and work with your marketing and business development partners to translate the IoT data captured into business models that would lead to increased customer dialog, trust, and retention.
4. New revenue streams: IoT capabilities allow you to roll out new products and services easily. Use data collected by IoT devices to help predict what your customers need and speed planning and delivery of new revenue-generating offerings.
5. Improves employee productivity: IoT helps to assist your staff, provides better productivity and agility, and makes your business systems easily available anywhere, anytime. IoT enables simple implementation of new tools and system that leads to increased productivity and overall accessibility of employees.
How does IoT connect and share data?
IoT devices use a variety of methods to share and connect data such as Wi-Fi, Bluetooth Low Energy, LTE, or even satellite connections. However, the availability of a vast number of options has already led some to argue that IoT communication standards need to be as accepted and interoperable as Wi-Fi is today.
One area of growth in the next few years will be the use of 5G networks to support IoT projects. With the implementation of 5G, as many as one million 5G devices can be fitted in a square kilometer. This means that it will be possible to use a vast number of sensors in a very small area, making large-scale industrial IoT deployments more possible.
As per the statistics shared by Ericcson, there will be somewhere around five billion IoT devices connected to cellular networks by 2025, but only around a quarter of those will be broadband IoT, with 4G connecting the majority of those.
In conclusion, as the number of connected devices continues to rise, our surroundings will be covered with smart devices and products, which will surely lead to increased digital transformation.