Leveraging IoT for Business Growth

by IT Executives Council | Aug 12, 2024 | Digital Transformation

The Internet of Things (IoT) is taking over. This network of communicating physical objects transmits and analyzes data that plays a key role in various business operations. A smart leader will leverage it to improve their company’s efficiency and profitability and make better decisions.

Improves Efficiency

IoT improves efficiency in several aspects of business across various industries. Here are some examples of how it can make your company more productive.

Automates Tasks: IoT connects physical devices to send and receive data. The process is effective in automating menial tasks. It reduces errors and frees up staff so they can focus on more pressing responsibilities.

Predictive Maintenance: The technology lives in machines and can detect divergences in normal behavior that could indicate a need for maintenance. It alerts teams so they can order service before it becomes a major issue. Doing so reduces downtime and results in cost savings.

Energy Efficiency: IoT can collect data on a company’s energy use so they can identify areas of improvement. When companies become more energy efficient, they impress more customers, save money, and protect the atmosphere from global warming.

Inventory Management: The technology is integral in various aspects of inventory management. It can monitor inventory levels to avoid overstocking and understocking. It can pick and track orders through the warehouse reducing the need for human intervention. It also detects issues with inventory quality so they can be addressed before they become a bigger problem.

Decision Making: IoT provides real-time data that is integral to the decision-making process. It collects data from various sources to provide insight into consumer behavior and market trends. Leaders can use this data to make smarter decisions quickly improving overall company efficiency.

Workforce Management: Companies can use the information they gather from IoT to keep track of employee attendance, hours, and performance. These metrics update in real time allowing leaders to provide critical feedback to ensure operations run smoothly.

Product Development: IoT can assist with a smoother product development process. It collects data that provides insight into manufacturing and research and development. The technology can perform manufacturing analyses to determine a production timeline. Engineers can foresee problems and correct issues before products go to market.

How IoT Creates Revenue Streams

IoT is conducive to upselling. Businesses can integrate the technology in their products to sell packages to customers that include features like monitoring, repairs, and subscriptions. These ongoing services build customer loyalty and provide additional ways for companies to earn revenue.

Here are some examples of how you can integrate IoT to increase revenue in your business models:

Monitoring and Repair: IoT sensors can detect when products are due for repair. Service industries can use this to their advantage by offering to monitor the systems they’ve installed. They can track sensors and let customers know when an anomaly is detected. They can dispatch service crews as needed. Companies can earn additional revenue by charging customers for repair and monitoring.
Subscription Models: IoT can be integrated into various subscription model types helping companies increase revenue and retain customers. It provides automated services like smart music listening and health device alerts. It also helps companies automate billing and tells them when new products need to be shipped, if necessary.
B2B Services: The technology can be valuable in B2B services. For example, cold chain monitoring can be sold as a service to the chemical, food, pharmaceutical, and logistics industries. It provides real-time information about products and shipments so suppliers can improve efficiency.

Boosts Business Growth

IoT’s ability to create revenue streams and increase efficiency helps companies grow in the following ways.

Improved Customer Service: IoT provides insight into consumer behavior so companies can provide better service. Its ability to monitor devices and track subscriptions gives customers more options. It also frees up workers so they can focus on customer needs.
Cost Reductions: Companies that integrate IoT become more efficient and productive which helps reduce company expenses. Its automation also minimizes costly errors that can hold a company back.
Innovation: Businesses can use IoT to create out-of-the-box products and services that make them stand out as leaders in their industry.

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