The wheel, the printing press, the electric light, the assembly line. Few innovations have impacted the way we live, work, and play more than these until now. Internet of things is a revolution, and in this post, we’ll explain how IoT impacts businesses and our lives.
The Internet of Things (IoT) stands to transform life and business as we know it. You could even argue that IoT will change the world more than any other innovation in humanity’s history.
Think about all the devices you own connected to the internet in one way or another. Obviously, there’s your phone, tablet, and computer. But what about smart appliances, like your thermostat, vacuum, or even your washing machine? Not to mention other smart tech like your watch, TV, home speakers, and media players.
Beyond that, security devices, manufacturing equipment, and a whole host of other enterprise products are also present on the internet.
Lots of Devices on IoT
Put all the connected devices from around the world together, and what do you have? The Internet of Things. And in case you were wondering, there are an estimated 14.4 billion active connections to the IoT. And that number will grow to 27 billion by 2025, all connected, and it impacts the internet of things.
IoT is the network of all these connected devices. On this network, individual pieces communicate with each other to exchange critical information. These connections enable smart devices to leverage their capabilities as a whole to increase efficiency, predict human behaviors, and more.
Still don’t get it? You aren’t alone. Even though the IoT has been around for about as long as the internet itself. Most people are just becoming aware of this innovation and how it impacts business.
And even though the It may sound like something from a science fiction movie. It’s a real force impacting businesses today. With the proper guidance, companies can use the IoT to improve their processes. So, provide better customer service, all while decreasing their bottom line. Here’s how the IoT is changing business.
Intuitive insurance vs. internet of things
One of the industries most affected by the IoT is insurance. In fact, one in five insurers are currently testing IoT initiatives to determine the role it will play in underwriting. So, executing policies in the future reflects impacts on the internet of things.
In the past, insurance companies were guided by actuaries skilled in predicting any risk likelihood. They used historical data to foretell risk. But the IoT enables insurance companies to pinpoint future risk more accurately, and in real-time, too.
Instead of reacting to events that have happened. Data from the IoT enables insurers to proactively predict and (hopefully) prevent losses from occurring in the first place. For example, let’s say a chocolate manufacturer is fully present in the IoT. Their wrapping machine begins to overheat, but it occurs at a time when no one is in the control room to respond. Fortunately, because their equipment is connected to the IoT, their insurance company observes the malfunction and contacts the chocolate manufacturer before a major incident, like a fire, occurs.
Customized coverage
Insurance companies can provide better coverage customized to every business’s unique needs with information like this. And what’s more? Premiums will go down, which means that professional liability cost, as well as other policy costs, will decrease. All the while, the quality of the insurance increases.
Let’s go back to the chocolate manufacturing example and say there’s another candymaker next door, but they make jelly beans, not chocolate. In the past, the policies of each of these manufacturers probably would’ve looked nearly identical. But when the IoT informs business insurance decisions, the policies for each candymaker couldn’t be more different.
When a company’s processes are connected to the IoT, insurers can extract information from their facility’s unique equipment, procedures, and outputs and create a policy for their particular needs.
Perhaps the chocolate plant has a great deal of refrigeration that requires more coverage in the summer months when the cooling tunnels work harder. Or, in the jelly bean plant, maybe there’s a greater risk of workers’ comp claims because the process used to get the shine on the candy makes the floor slippery.
Whatever nuances exist between the chocolate and jellybean factories, the IoT can identify those factors and consider them when recommending a business insurance policy for each company.
Safer spaces impacts with internet of things
Businesses’ physical properties will be safer workplaces when connected to the IoT. You can already see this working in earnest when a building has automatic sprinklers and a system to call the fire department automatically when a fire is detected.
What sets the IoT apart is its ability to predict the fire before it happens. So again, let’s return to the example of the chocolate factory’s wrapping machine. When the wrapping machine began to overheat, the IoT noticed, even if there were no human beings around, and was able to sound the alarm long before a fire started.
The same goes for security against break-ins, flood prevention, or even carbon monoxide poisoning. The more devices are connected to the IoT, the better the system identifies anomalies in a building’s condition and reacts accordingly.
Increasing safety measures is especially important in construction, manufacturing, and industrial businesses because workplace accidents at these facilities are highly likely. Any time you can predict an accident before it happens, you not only save money, but you can save lives.
Improved user experience
All of the benefits of the IoT lead to the same place: an unparalleled user experience. The IoT helps companies provide better products in a shorter time, usually at a lower cost. What consumer doesn’t want that?
But the IoT goes a bit deeper than that. Consumers today are constantly bombarded with content to inspire them to buy. In the history of commerce, there has never been so much competition for people’s attention.
As a result, consumers are looking for a personalized buying experience. They want their consumer journey to start and end with customized touches to make them feel unique and valued. And the IoT makes this possible.
Because every day, devices connected to the IoT collect data about consumers. In many respects, it knows you better than you know yourself because it can predicate your internet use and buying behaviors with relative accuracy.
As scary as the amount of information may seem, it’s a wonderful business innovation. And in the end, the information collected by the IoT does provide consumers with what they want: a personalized buying experience.
Digital downsides and internet of things negative impacts
Information is power. And the IoT will soon contain more information than anyone can imagine. This begs the question, “is all that data secure?”
Yes and no. It depends on where it’s coming from, the user’s settings, and the receiver’s data management protocols, some of which are dictated by law.
In truth, it would be easy for businesses to misuse data from the IoT and leverage the information to employ predatory tactics. And unfortunately, some businesses are doing just that.
And because of the rapid development of the IoT, few governments have adequately addressed the data security concerns raised by this technology. Fortunately, most businesses want to treat their customers ethically and believe that making consumers happy and safe is in the company’s best interest.
Despite its brief time in the limelight, the IoT has already started turning heads, changing minds, and transforming the way commerce is conducted worldwide. So no matter what kind of business you’re in, chances are the IoT will impact the way you operate in the next decade.
When it does, will you be ready?
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