How IoT will Enable Digital Businesses

IoT has already established itself in industries such as manufacturing, healthcare and transportation, which helps to improve efficiencies, reduce risk and increase productivity. These industries are replete with embedded systems making it easy to integrate an IoT framework.

With the influx of cloud computing, big data, and IPv6 protocol technologies, data connectivity has become essential. With IoT at the center, these utilities can be successfully implemented to create smart systems. Unlike M2M interactions that were limited to remote connectivity, IoT provides a platform for identification, tracking, monitoring, metering, automation and actuation on a global scale. With all of its applications, IoT is the key to enabling digital businesses.

Virtual banking enabled by IoT

Retail banking is replacing traditional bank models with digital ones. With electronic money and online payment portals like Paypal, digital wallets like Apple’s Passbook and digital currencies like Bitcoin, it is only a matter of time before banking goes completely online. IoT facilitates the globalization of these technologies, allowing for peer-to-peer transactions without a third party involvement. Virtual banking allows for a seamless transaction process and ease of access. With big data, issuing loans becomes easier for the customers and is safer for banks themselves. It is like Bill Gates once said, “Banking is essential but banks are not.”

Insurance improving people’s lives

Insurance agencies will be able to create personalized solutions for people who are willing to be monitored by IoT devices. Data such as heartbeats, drug levels, protein quantities and blood pressure will constantly be fed to insurance agencies, enabling them to respond to dangerous changes in the customer’s health statistics. Insurance agencies can amend annual premiums accordingly, thereby also ensuring that people are less inclined to participate in activities that increase risks. This will lead to a rise in people leading healthier and safer lifestyles and more optimum processes around premium calculation and payouts by insurance agencies.

Enriched hospitality experience

While the realization of smart homes for everybody might be a few decades away, IoT can be successfully integrated into the hospitality industry. People can experience smart system-enabled comfort and luxury during their vacations. Services like temperature adjustment, tour guides and room service will be arranged solely through your smartphone. Each room will become personalized for its users and will lead to an enriched user experience. The Plaza hotel stay can include an in-room iPad that controls all the features of the room. To take this a level further, IoT enabled hotels can allow the customer’s smartphone to control these features, and their databases will record these settings for the customer’s next stay.

E-commerce services improved

IoT will make the logistics management, delivery tracking and inventory management of e-commerce industries more efficient. It will incentivize repeat sales through customized discounts and offers to customers. In addition, IoT will be able to intuitively ascertain the user’s needs, through their sales activities, and provide a solution accordingly. For example, GPS enables cab services like Uber to anticipate potential customers when they turn on their app. Once the app is open, it will send the location to the cab driver, which will help them move towards the customer even before the transaction has begun.

Marketing products that people need

The scale of processed data brought in by IoT will enable businesses to focus their marketing efforts on product quality and design. Production of goods will be in tune with market demand, which will prevent losses.
With the data, companies will produce new products that are tailor made for niche markets. Furthermore, social media marketing will no longer spam the user with irrelevant product information but rather with information that will enable the customer to make intelligent choices. Marketing will become a consultant for customers, instead of focusing on sales.

Supermarket experience refined

Supermarkets can digitally tag their products to monitor buyer activities on each aisle. With the data provided, they can rearrange their products in such a manner that regulates buyer movements efficiently. They can place their unpopular products strategically to obtain maximum visibility. This will help reduce the time spent by the buyer and is an effective marketing strategy. Data provided by customer habits can refine the supermarket experience and keep them in step with their e-commerce competitors. While large retail stores are already doing this in some ways, the full potential of customer movement and buying data within a store is yet to be fully realized.

We are at the far end of a spectrum that diverges into a broad range of possibilities. With augmented reality systems coming into play, customer interaction will be the future of digital possibilities. Customers will play a key role in every aspect of product design, bringing us closer to the reality of “youtility.”

This article was originally published on Naveen Joshi’s LinkedIn. To learn more about  Naveen, connect with him on LinkedIn, follow him on Twitter or visit his website.

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One Comment on “How IoT will Enable Digital Businesses”

  1. There’s some optimism! Not sure how many Americans will be so happy to share their data with insurance companies. Many will deeply resent it – it’ll only mean bad news for their premiums. Indeed, the insurance companies will desperately WANT this data, so they can manage risk more cost-effectively. THIS, I expect, will be a very difficult problem to manage as consumer IoT devices promulgate. HIPPA is in for a rough ride over the next 10 years.

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