IoT is capable of driving change in organizations by providing data for a wide range of operational activities. However, that change is only possible if that data is reintegrated into the systems used in making crucial decisions.
So many devices and equipments have become wirelessly connected to the internet, which is evidence that IoT has a role in promoting digital transformation. The interest and conversations are moving from consumer applications to the marketplace.
How IoT is Impacting Companies
For many companies, the Internet of Things is beyond the experimental phase and is an integral part of business processes. When it’s implemented in the right way, it can provide a competitive edge in various sectors.
As an example, tire maker Michelin has capitalized on IoT and asset tracking in particular to gain more visibility in various areas. It can track sea-freight containers in real-time, analyze the supply chain, and improve customer satisfaction.
Apple is also worth mentioning here. Through embracing IoT, the company has improved its user experience in providing many smart and connected products like the iwatch or its HomeKit range of devices for the smart home. In its traditional area of business, Apple also keeps innovating and pushing new products and OS versions. The latest major macOS version to come is called Big Sur and it is expected to bring significant innovation to Apple’s galaxy. The only downside is that the release has several Big Sur issues that the company needs to resolve.
Digitization as the First Step in Digital Transformation
Digital transformation has a lot to do with data, despite the many convoluted definitions of the term. Think about it as an enabler of companies to use customer data to drive their business. A closer analysis reveals that it’s the platform that allows businesses to get closer to their customers.
Traditional companies may have a hard time conceptualizing digital transformation. This is because there’s nothing concrete to hold on to. How then can a traditional company reap the rewards of digital transformation?
Establish a Link
The first thing is to create a digital link between the company and the customers, which is possible through IoT. While technology starts with connectivity, it’s not until digitization is embraced that things become interesting. All companies have the capability to transform into digital companies through an IoT platform.
The move to digitization is pioneered by some of the biggest companies alive. However, the pressure to transform isn’t limited to big companies. Timing is of the essence in many aspects, and it’s no different in digital transformation. Digitized companies compete more effectively than traditional ones.
How Does the IoT Platform Enhance Digital Transformation?
Digital transformation as a result of IoT is more applicable to physical products. The traditional company makes money by selling products, which is the reason for everything else. IoT-based transformation aligned with a company’s culture is both understandable and exciting to motivate employees to embrace it.
IoT technology can collect physical data and convert it into useful information for a company when appropriately applied. The process is carried on an IoT platform that enables a company to digitize physical products. The collection of data is the digital link between a company, its products, and the customers.
A data sensor converts the information into a digital payload and wraps it with protocols. This way, it’s transmitted on the network by a software agent on the embedded system. This defines the edge of the IoT system. From here, the data payload is sent to the operational technology network, and it finds its way to the public cloud and database.
It can be processed by artificial intelligence or analytics software to create information models for storage on business systems. Various departments within the company can access the data and use it to streamline operations.
Leveraging IoT Data
The most crucial information that must be collected from the product is about the product itself. The usability, utility, and performance can be compared to its actual use. This kind of analysis can lead to growth in innovative strategies that improve products and encourage innovation.
Other useful data that can be collected through digitization can be beneficial to departments like:
- Marketing
- Human Resources
- Support
- Sales
- Manufacturing
- Legal
The role of IoT in businesses is to transform the nature of work and even change the middleman’s role. However, this requires a high level of understanding of how it fits the scope of transformation. It contributes to the changing of business models and real innovations while making different sectors more impressive.
Harnessing IoT for Digital Transformation
Companies that want to use IoT for digital transformation should learn from those ahead of them. They can borrow a leaf from the deployments that already exist. For guidance and before delving into IoT, this is what companies need to know.
Lowering their Barriers to Entry
Companies must embrace enterprise applications that are specifically designed for IoT data. In doing so, it’ll be a lot easier to proceed and thrive in digital transformation.
Minimizing Risk
The solutions companies hope to provide should be relevant to the business and industry. This will help reduce the total opportunity cost while lowering the risk profile of the process.
Focusing on Incremental Results
Successful companies are always on the lookout for specific cases where they can harness IoT data. Being keen on such issues will enhance the achievement of measurable business benefits within a short period.
Final Thoughts
While IoT is not new, its impact on businesses is just starting to be felt on various enterprises. It has radically changed businesses and disrupted industries. The platform is a lot more than just technology and is the catalyst for digital transformation at all levels.
At the heart of IoT is software that coordinates data and converts it to a more useful form. It’s no wonder that connectivity and digitization are giving companies a chance to do things better. While successful digital transformation is a journey, choosing the right starting point should not be overlooked.
