Digital transformation has been a hot topic among enterprises determined to find ways to better compete, reduce costs and improve customer experiences. The internet of things (IoT) represents a major evolution in data collection and presents a monumental opportunity for transformative digital growth.
It seems in many cases, the IoT is defined specifically as a way of collecting, capturing and distributing device data for analysis. The term, internet of things, like “cloud” when it first gained attention, is being pigeon-holed by some technologists. When you break down the benefits achieved from early POC use cases, the IoT is showing significant signs as a key enabler driving digital transformation.
These drivers include:
- Discovery of new business opportunities — the collection of massive data sets, around behavior and fitness, generated by connected devices (whether from manufacturing equipment, transportation, medical technology, wearables, etc.) can help companies gain a deep understanding of the customer experience. Assuming companies leverage this data effectively, it can lead product teams to design and build new and/or better products.
- Operational efficiency and cost reduction — a major driver for IIoT deployments. the ability for the IoT to reduce costs and increase productivity through automation, real-time monitoring, process integration, and proactive maintenance. The combination of data-driven insights and sensor-integrated systems creates new ways to improve operations in multiple areas, including inventory, human resource management, security, energy, supply chain, and safety compliance, to name just a few!
- Increased speed and agility — although initially a barrier, the IoT can accelerate digital transformation as enterprises break-free from slow legacy IT systems to become more nimble and responsive. Enterprise data centers are being pushed to become agiler in response to market needs. The IoT helps accelerate this process by enabling technology, operations, data, and product resources to focus on strategy and innovation.
An article from internetofthingsagenda.techtarget.com goes into additional detail explaining the growth drivers of the IoT.
